FSDEA Holds 1st Advisory Council Meeting Focused on Strengthening Its Role in National Economic Diversification

23 February 2025

PRESS RELEASE

FSDEA HOLDS 1ST ADVISORY COUNCIL MEETING FOCUSED ON STRENGTHENING ITS ROLE IN NATIONAL ECONOMIC DIVERSIFICATION

Luanda, 21 February 2025 – The Sovereign Wealth Fund of Angola (FSDEA) held today its 1st Advisory Council Meeting, a strategic forum that brought together members to discuss and align actions aimed at supporting its Administration in the formulation and implementation of investment policies aligned with national growth and development priorities.

The Advisory Council is a statutory body, provided for in Article 18 of the Organic Statute of the FSDEA. It is chaired by the Chairman of the FSDEA Board of Directors and includes the following entities as members: a representative of the Ministry of Finance (MINFIN), a representative of the Ministry of Planning (MINPLAN), and a representative of the National Bank of Angola (BNA), as well as independent professionals and academics.

The Advisory Council reviewed and approved the Advisory Council’s Regime and was also briefed on the FSDEA Strategy for the 2024-2028 Five-Year Plan, as well as the progress of structuring some key actions within the FSDEA’s contribution to fostering the diversification of the national economy. These actions aim to address the deficit in the supply of goods and services, promote increased local production, enhance internal monetary circulation, and generate employment opportunities.

The Council also reviewed the progress of FSDEA’s co-investments and seed capital initiatives through its special-purpose subsidiaries, in the fields of animal protein, the pharmaceutical industry, and fertilisers:

1. Poultry Farming (Chicken Production)

In line with the priorities defined by the Executive, FSDEA’s investment strategy for Angola places increased attention on food security and sovereignty. The strategy highlights five poultry projects currently under structuring and implementation, strategically distributed across the country. In aggregate, these projects will enable the annual production of 104.2 million day-old chicks and 73.6 million broiler chickens, fostering industry growth estimated at ¼ of the capacity of breeder stock and incubation.

These investments allow for every USD 1 from FSDEA, an additional USD 3 in private investor equity and debt, creating new markets, with a particular focus on grain producers from the Angola Agricultural Association (AAPA). This promotes a more integrated, resilient, and sustainable business environment. It is estimated that these projects will generate up to 3,021 direct jobs.

2. Petrochemical Industry and Fertiliser Mining

Highlight on two fertiliser production projects: Mining and processing of 200,000 tonnes of phosphate rock in Cabinda, and production of 3,500 tonnes per day of nitrogen-based fertilisers using natural gas in Soyo. These investments allow in 1 USD from FSDEA, to aggregate up to 6 USD from other investors, investment funds, and debt. It is estimated to generate approximately 1,141 direct jobs, among other benefits.

3. Pharmaceutical Industry

FSDEA’s co-investments in the pharmaceutical sector represent a strategic step towards strengthening the healthcare sector and reducing reliance on imported essential medicines. Currently, three projects are under implementation and structuring, one in Huambo and two in the Luanda-Bengo Special Economic Zone (ZEE).

Overall, these projects will enable the country to produce:

60 million intravenous solutions
2.4 million units of medicine
4.7 thousand tonnes of medical gases
16 million vaccine units

These investments allow for every USD 1 from FSDEA, up to USD 8 to be leveraged in private investor equity, other investment funds, and debt. These projects not only have the potential to help reduce the local supply deficit but also support regional exports within the framework of the African Continental Free Trade Area (AfCFTA).

FSDEA Advisory Council’s Role

The FSDEA Advisory Council is a consultative body aimed at supporting its Administration in formulating and implementing policies for mobilising private capital, aligned with national growth and development priorities.