OACPS analyse financial issues

The member countries of the Organisation of African, Caribbean and Pacific States (OACPS), including Angola, have analysed administrative and financial issues that hinder the normal functioning of the institution.

The event, which was held in Brussels, took place in a virtual format and brought together the organisation’s council of ministers.

According to a note from the Foreign Affairs Ministry, which ANGOP has had access to, the OACPS is experiencing financial difficulties.

For example, according to the note, of the more than 2 million euros that the member states should contribute by March 30 this year, only about 18 percent have been deposited so far.

The meeting also considered the Report of the Committee of Ambassadors to the Council of Ministers on the complete renovation project of the OACPS building (headquarters).

The analysis includes the draft decision of the Special Session of the Council of Ministers on the OACPS House Project.

The Angolan delegation is being headed by Domingos Custódio Vieira Lopes, secretary of State for International Cooperation and Angolan Communities, in representation of the Foreign Affairs minister.

The OACPS, former African, Caribbean and Pacific Group of States (ACP), is an organization created in 1976 by the Georgetown Agreement.

It comprises 79 African, Caribbean and Pacific states, except for Cuba, which are signatories to the Cotonou Agreement, also known as the “ACP-EC Partnership Agreement”.

The OACPS seeks the sustainable development of its member states, their gradual integration into the global economy, and the establishment of a new, fairer and more equitable world order.

Source: Angola Press News Agency (APNA)

Angola needs to allocate 10% of State Budget to improve water and sanitation sector

The improvement of the Water, Sanitation and Hygiene (WASH) sector in Angola requires an annual investment of about 10 percent of the General State Budget (OGE).

This estimate, which aims at equity and sustainability in Water, Sanitation and Hygiene services, is expressed in a UNICEF project to which ANGOP had access, whose public presentation is scheduled for March 28 in Luanda, as part of the celebration of the World Water Day.

The draft sets out this estimate based on the “Africa Infrastructure Country Diagnostic (AICD), which states that African countries should allocate 3.5% of their Gross Domestic Product to the Water, Sanitation and Hygiene sector to achieve equity and sustainability in these services.

Recommendations

For the efficiency of the ASH, UNICEF recommends that Angola develop and approve a National Strategic Plan for Water Supply and Sanitation, future-oriented financial instruments that ensure the alignment and involvement of stakeholders in decision-making.

To improve the sustainability of the sector, WASH also suggests creating additional sources of finance, including private sector investment, and increasing sanitation standards, coverage and budget.

To increase the effectiveness of public spending in the Water, Sanitation and Hygiene sector, it further advises investing in administrative modernisation and operational digitisation, improved performance monitoring and results-based budgeting, as well as continued accountability and transparency of the national budget.

Obstacles

The project presents obstacles linked to regulation and strategy, precisely the “lack of connection between priorities and financial needs, even though national plans exist” and defined goals are not directed transparently at specific institutions”.

Still on the obstacles linked to regulation and strategy, the project indicates that “future funding is very unpredictable, with no long-term funds for the sector”.

It points to the existence of a clear delimitation of roles, responsibilities and relationships between institutions, as well as the need to create clear and transparent mechanisms for effective coordination and implementation of the sector.

On the other hand, the project, which resulted from an analysis, concluded that the budget for Water, Sanitation and Hygiene in Angola is mainly made up of “Water Supply”, which in 2022 consumed 73.8% of the total foreseen, and this year it is foreseen 74.1%.

Basic sanitation comes next with 26.2 percent in 2022 and forecasts 25.7 percent for 2023, a significant increase compared to 2021, which was 12 percent.

The budget includes “Water Supply”, “Sewerage”, “Waste Management”, and “Wastewater Management”, however, since 2020, these last two items have not been included in the State Budget.

The money for WASH is mostly administered by the ministerial departments of Environment and Energy and Water.

The annual growth of the Angolan population is estimated at 3% (34 million inhabitants), another detail highlighted in the analysis as a tremendous challenge for water supply, sanitation and hygiene infrastructures throughout the country.

Objectives

The UNICEF project consisted of conducting analysis of the challenges facing the water, sanitation and hygiene sector in Angola through a Public Finance perspective.

It aimed to understand how government funds have been allocated to the sector over the past 10 years to provide a tool to improve budget allocation and a mechanism through which stakeholders in the sector can better understand national spending.

Source: Angola Press News Agency (APNA)

Stock Exchange Business grows 60.20% and registers a AKZ 1.5 billion record

Luanda – The Angolan Debt and Stock Exchange (Bodiva) handled 1.5 billion kwanzas in 2022, a volume of transactions considered “record”, with 5,746 deals being carried out in the markets.

The movement of securities had a 60.20% increase compared to the same period last year, according to the annual report presented this Thursday, at the BODIVA’s IV Forum edition 2023.

In each quarter, an average value of 391.2 billion kwanzas was traded, according to the document presented by the Bodiva’s executive director, Odair Costa.

The highest peak of negotiations was registered in the third quarter, with a movement of 606.31 billion kwanzas.

With a quarterly average of 1,437 transactions, there was an increase of 6.01% compared to the same period of the previous year.

By market segment, around 63.26% were trades carried out in a multilateral environment and around 36.74% bilaterally, with a tendency for investors to taking preference on the multilateral environment.

In terms of business, the annual average between 2016 and 2022 was 38.80%.

Of the amount traded by year of maturity, compared to previous periods, there is a greater concentration in securities with residual maturity of up to 3 years.

As an example, bonds maturing up to 2026 represent 77.92% of the amount traded in 2022.

Treasury Bonds (OT) registered a total of 4,643 trades, equivalent to 80.80% of total trades, while Treasury Bills (BT) stood at just 0.17%.

In terms of private securities, Shares represent, in the aforementioned period 16.95% and Participation Units 2.07%.

By type of security, Non-Adjustable Bonds – OT-NT (72.27%) predominate, with greater appetite from institutional and private investors regarding to Treasury Bonds Linked to Exchange Rate -OT-TX (18.90 %), Bonds in Foreign Currency – OT-ME (3.83%), Shares (1.56%), OT-BT (021%), Treasury Bills (0.15%) and Shares (0.07%).

In 2022, five members had the best performance in the amount traded in 2022, out of a total of 25 intermediation agents. These are Fomento Angola Bank (BFA), BAI Bank, Standard Bank Angola (SBA), Millennium Atlântico bank (BMA) and BPC bank.

Transactions from these top five places at the level of trading and settlement members account for around 63.73%.

Of the total, BFA holds a market share of 23.52%, with 625.01 billion kwanzas handled, in 2022, while BAI comes in second with a share of 17.70%, with 470.35 thousand million kwanzas transacted.

In terms of sectors, financial institutions were the ones most traded in the buying position, with a total of 172.15 billion kwanzas, Kz 93 billion from companies in the wholesale and retail trade sector.

In the case of sellers, the industry sector leads with 99.98 billion, followed by wholesale and retail trade with Kz 83.52 billion.

According to Odair Costa, the year 2022 was marked in the history of the markets, as the period in which the Equity Market was implemented, the admission to trading of the issuers of BAI and Banco Caixa Geral Angola bank (BCGA).

Source: Angola Press News Agency (APNA)

BODIVA presents annual report of markets

Luanda- The Angolan Debt and Securities Exchange (BODIVA) is due to present, Wednesday in Luanda, the annual report of the markets, during the 4th BODIVA forum, an event that brings together counterparts from Cabo Verde and Mozambique.

In this edition/2023, the forum will be held under the motto, “The Market in Growth”, and it is expected to be an environment of debate and reflection with the main members of the market in Angola, according to the note to which ANGOP had access.

The event will bring together senior officials from the national and international financial sector, with emphasis on the CEOs of Cabo Verde’s and Mozambique’s Stock Exchange, and of the hosting country, Angola.

The Chairperson of the Executive Council for Africa of the International Investment Bank (IIBank) is also expected for the forum, which will participate in the debate on the growth of the stock market in the SADC region, the stock market and sustainable financing.

This edition also foresees the launch of the fourth edition of the magazine “A Bolsa”, as well as, the distinction of the Angolan securities market players, whose performance in the past year contributed to significant advances in the market. Currently, BODIVA has 26 members among banking financial institutions and real estate brokers.

BODIVA is the managing entity whose responsibilities include ensuring the transparency, efficiency and security of transactions in the regulated securities markets, with the aim of stimulating the participation of small investors and competition among all operators.

On December 19, 2014, the capital market in Angola, regulated by the Capital Market Commission (CMC), started and BODIVA was granted the secondary market for public debt.

On January 26, 2015, Banco de Fomento Angola (BFA) bank became the first trading entity of the Debt and Securities Exchange of Angola, and remains the leader in stock market trading.

The start of the corporate debt market took place in 2018 and the launch of the equity market took place in 2022, with the public offering of shares in BODIVA of the entire portfolio of Angolan Bank of Investment which belong to Sonangol Holding.

Source: Angola Press News Agency (APNA)

Angola and France launch partnership in agrifood sector

Luanda- Private sector companies from Angola and France launched, this Thursday, a production partnership in the agricultural and agri-food sector, as part of the visit of the President of that European country, Emmanuel Macron.

The said partnership is to be launched at the business forum that brings together 100 companies and entities from both countries.

As part of the partnership, it foresees the set of a partnership agreement between the French private sectors of France (Medef/Coalition Alfa/CEFA) and Angola (AAPA, Agrofagro), for the development of new partnerships with priorities for the production of cassava, maize, soy , cotton, cereals, peanuts, coffee, fruits and vegetables.

Also in the priorities are raising cattle and pigs, poultry and fish.

For this, Angola is presenting the potential of the agricultural sector and the needs and expectations of the private sector.

In this panel, Angola presents to French businesspeople the country’s needs in terms of technical knowledge, market structure and financing.

The Parties intend to agree on priority sectors and include partners, identify partnership opportunities and take stock of obstacles to project development.

Another panel to be addressed is the issue of partnerships that are possible between French and Angolan entities.

At this point, the intention is to present the action and proposals of the French private sector for the development of Angola’s agricultural sector and production, in partnership with local agents, in order to jointly identify priorities for the country and in which the offer of the French delegation can be valued.

Source: Angola Press News Agency

Angolan company exports tons of coffee to Switzerland

Luanda – Angolan coffee company Angonabeiro exported Tuesday the first 20-foot container of nine tons of “Ginga Lobito ” coffee beans to Switzerland as part of the brand’s internationalization.

The company, which is the leader in the roasted coffee market in Angola, said the export is part of the strategy to re-launch national coffee production to aid the country’s economic diversification and to contribute to boosting the entire coffee production chain from small farmers to exports.

Between 2018 and 2021, the company exported a total of 2,000 tons of products of the same brand in several countries such as Namibia, Senegal, Portugal, France, China and the United States of America (USA), a source has told ANGOP.

The director general of Angonabeiro, Nuno Moinhos, said that exporting Ginga coffee to Switzerland was an international recognition of the quality of Angolan coffee.

“At Angonabeiro we strongly believe in the export potential of national coffee and we intend to expand the consumption of Ginga coffee to an increasingly larger percentage of the international population and thus contribute to the growth of the Angolan economy”, Nuno Moinhos said.

According to Moinhos, Angonabeiro’s focus is on exporting Ginga coffee, a processed product that adds more value to transactions.

Another challenge will be to increase investment and production capacity and to invest in new products to reach larger international recognition for the brand.

By financing some small producers, without additional commissions, the company is ensuring the sustainability of coffee producers in Angola, as well as building infrastructures.

Such investment is part of the company’s social responsibility policy, which aims to support community projects.

Source: Angola Press News Agency

Angola and Zambia analyse boarder issues

Luanda – Angolan minister of State and Head of the Military Affairs Office to the President of the Republic Francisco Furtado analysed Tuesday in Luanda issues related to security on the border between Angola and Zambia.

Francisco Furtado discussed the boarder issues during a meeting he held with the head of Zambian Defence Intelligence, Brigadier General Oscar Chapula,

During the meeting, the two representative also discussed measures of combat cross-border migration and joint actions in the field of intelligence.

The Zambian military delegation has been in Luanda since Monday (27th), at the invitation of Angolan counterpart. AFL/AL

Source: Angola Press News Agency

Angola creates framework for financial access with interest below 3%

Luanda – Economic Commission of the Cabinet Council approved Thursday the operational framework for the financing of sustainable projects – a document that sets out the guidelines of the Angolan State in the international debt market.

Angola gains access, with this operational framework, to a set of investment funds tending to be concessional from international financial institutions that are increasingly showing an “appetite” to finance projects as part of the Sustainable Development Goals

(SDGs).

The minister of Finance Vera Daves said that this is a demanding process, but with the “merit” of long-term financing, over 15 years and with interest rates below 3%.

Speaking to the press at the end of the 2nd Ordinary Session of the Economic Commission of the Cabinet Council, chaired by the president João Lourenço, the minister said that this is a set of resources that Angola has not had access to, due to the lack of an operational framework for sustainable financing, now approved.

However, the funds mobilised by Angola via sustainable financing instruments are secured, and they are effectively channeled to eligible projects and expenses, allowing the Debt Strategy to be aligned with the country’s environmental and social policies.

Vera Daves said that Angola has so far resorted to internationally domestic treasury financing and project financing, in general, without the specific focus of the type of projects that are supported by multilateral and bilateral financial institutions.

Under the coordination of the minister of State for Economic Coordination, the Ministries of Finance, Economy and Planning and other Ministerial Departments, will identify potentially legible projects to receive sustainable financing, but based on legitimacy criteria and with indicators of social and environmental impact.

“The funders ask that criteria be met at the beginning and also request follow-up information throughout the process and impact reports, also throughout the process and at the conclusion of the project”, the minister of Finance has stated.

Among the various structuring projects, the minister referred to those linked to energy and water, education, health, waste management and all those that can contribute to the protection of the environment and social impact on communities.

Source: Angola Press News Agency

Parliament to pass Special Tax Regime for Cabinda

Luanda – National Assembly (AN) Thursday (23) will discuss and vote on the Bill that authorises the President of the Republic, as holder of the Executive Power, to Legislate on the changes of the Tax Regime applicable to the Concession Oil company in the Maritime Zone of Cabinda (Block-0).

The National Assembly’s specialised commissions approved Wednesday the Joint Opinion Report of the Bill, which will be discussed and passed at the 4th Ordinary Plenary Meeting of the 1st Legislative Session of the V Legislature.

The Document aims to leverage the socio-economic development of the province of Cabinda, through the application of tax benefits with a direct impact on the local business and on the lives of the people, increasing the level of own income and improving people’s quality of life.

Block 0, where the Lifua A platform is installed, is located about 30 miles from the coast of Cabinda.

A total of four concessionaires operate in Block 0.

They are Cabinda Gulf Oil Company, a subsidiary of Chevron, Sonangol EP, Total Petroleum Angola Limited and ENI Angola Production BV.

Chevron is the second largest concessionaire in Block 0 after Sonangol EP. FMA/AL/ADR

Source: Angola Press News Agency

Spy Balloon Lifts Veil on China’s ‘Near Space’ Military Program

WASHINGTON — The little-noticed program that led to a Chinese spy balloon drifting across the United States this month has been discussed in China’s state-controlled media for more than a decade in articles extolling its potential military applications.

The reports, dating back to at least 2011, focus on how best to exploit what is known as “near space” – that portion of the atmosphere that is too high for traditional aircraft to fly but too low for a satellite to remain in orbit. Those early articles may offer clues to the capabilities of the balloon shot down by a U.S. jet fighter on Feb. 4.

“In recent years, ‘near space’ has been discussed often in foreign media, with many military commentators pointing out that this is a special sphere that had been neglected by militaries but now has risen to hotspot status,” reads a July 5, 2011, article in the People’s Liberation Army Daily titled Near Space – A Strategic Asset That Ought Not to be Neglected.

The article quoted Zhang Dongjiang, a senior researcher at the Chinese Academy of Military Sciences, discussing the potential applications of flying objects designed for near space.

“This is an area sitting in between ‘air’ and ‘space’ where neither the theory of gravity nor Kepler’s Law is independently applicable, thus limiting the freedom of flight for both aircraft that are designed based on the theory of gravity and spacecraft that follow Kepler’s Law,” Zhang was quoted as saying.

He noted that near space lacks the atmospheric disturbances of aeronautical altitudes, such as turbulence, thunder and lightning, yet is cheaper and easier to reach than the altitudes where satellites can remain in orbit.

“At the same time,” he added, near space is “much higher than ‘sky,’ hence holding superb prospects and potential for intelligence collection, reconnaissance and surveillance, securing communication, as well as air and ground warfare.”

Zhang suggested that near space can be exploited with “high-dynamic” craft that travel faster than the speed of sound, such as hypersonic cruise vehicles and sub-orbital vehicles, which “can arrive at target with high speed, attack with both high speed and precision, [and] can be deployed repeatedly.”

But he said near space also can provide an environment for slower vehicles, which he called “low-dynamic” craft, such as stratospheric airships, high-altitude balloons and solar-powered unmanned vehicles.

These, he said, “are capable of carrying payloads capable of capturing light, infrared rays, multispectral, hyper-spectral, radar, and other info, which can then be used to increase battlefield sensory and knowledge capability, support military operations.”

They also “can carry various payloads aimed at electronic counter-battle, fulfilling the aim of electronic magnetic suppression and electronic magnetic attack on the battlefield, damage and destroy an adversary’s information systems.”

Four years after the PLA Daily article, images were published in the military pages of Global Times, a state-controlled outlet, of two small-scale stratospheric vehicles identified as KF13 and KF16.

The vehicles were developed by the Opto-Electronics Engineering Institute of Beijing Aeronautics and Aerospace University, China’s main aeronautical and aerospace research university, according to an explanatory note published alongside the model shown in the Global Times. The institution is now known as Beihang [Beijing-Aero] University.

The explanatory note said a key feature of the vehicles was their unmanned and remote-control dual capability. Work was being done in Beijing and Shanghai, as well as in Shanxi province, on seeing the vehicles evolve from concept to production, according to the October 2015 article.

Other images of near space objects that surfaced the same month featured variously shaped aircraft whose features and functions included high-functioning surface materials, emergency control mechanisms, precise flight control technology, high-efficiency propeller technology, high-efficiency solar technology and ground operation integration technology.

An image of a blimp-like near space flying object called the Yuan Meng, literally “fulfilling dream,” was also posted to the internet in October 2015. It was described as having a flying altitude of 20-24 kilometers, a flight duration of six months and a payload of 100-300 kilograms.

Rick Fisher, a senior fellow at the International Assessment and Strategy Center in Washington, told VOA that China’s interest in the exploitation of near space actually began long before the PLA Daily article.

“Since the late 1990s, the PLA has been devoting resources for research and development for preparing for combat in ‘near space,’ the zone just below Low Earth Orbit (LEO) that is less expensive to reach than LEO [itself], and offers stealth advantages, especially for hypersonic platforms,” he said in an exchange of emails.

In addition to round balloons such as the one shot down by U.S. aircraft on Feb. 4, he said, “the PLA is also developing much larger blimp or airship stratospheric balloons that have solar powered engines driving large propellers that enable greater maneuverability.”

Fisher said Chinese state-owned conglomerates such as China Aerospace Science and Industry Corporation (CASIC) “have full-fledged near space programs like their Tengyun to produce very high-altitude UAV and hypersonic vehicles” for the purpose of waging combat in near space.

Tengyun literally means “riding above clouds.”

In September 2016, Chinese official media reported that Project Tengyun, initiated by CASIC, was expected to be ready for a test flight in 2030. The so-called “air-spacecraft” is designed to serve as a “new-generation, repeat-use roundtrip flying object between air and space,” a deputy general manager of CASIC told the 2nd Commercial Aeronautical Summit Forum held in Wuhan that month.

Another four projects proposed by CASIC also bore the concept of “cloud” in their names: Feiyun, meaning “flying cloud,” focuses on communication relay; Xingyun, meaning “cloud on the move,” would enable users to send text or audio messages even “at the end of the earth or edge of the sky”; Hongyun, meaning rainbow cloud, would be able to launch 156 satellites in its first stage; and Kuaiyun, meaning “fast cloud,” would be tasked with formulating a near space spheric network.

While China’s openness about its near space ambitions may be debatable, the speed with which it has made advances in related R&D appears to be indisputable.

“Throughout my career that was focused on the PLA, I do not recall anything about the PLA having a balloon program, let alone to have balloons operating over U.S. territory,” U.S. Navy Captain (retired) James Fanell, who retired as director of intelligence for the U.S. Pacific Fleet in 2015, told VOA in a written interview.

U.S. official now say they are aware of at least 40 incidents, however, in which Chinese surveillance balloons have passed over countries on as many as five continents. Those presumably included an incident last December in which a high-altitude airship was photographed near the northern Philippine Island of Luzon bordering the South China Sea.

“The object would look to be a teardrop-shaped airship with four tail fins. It’s not entirely clear from the images whether it might have a translucent exterior or a metallic-like one,” wrote Joseph Trevithick, deputy editor of The War Zone, a specialized website dedicated to developments in military technology and international security.

“Overall, the apparent airship’s general shape has broad similarities to a number of high-altitude, long-endurance types that Chinese companies are known to have been working on,” he wrote, including “at least two uncrewed solar-powered designs, the Tian Hang and Yuan Meng, with external propulsion and other systems intended primarily for operations at stratospheric altitudes, both of which have reportedly been test flown at least once.”

Fisher said the United States would be well advised to emulate China in enhancing its capabilities in near space.

The American aerospace company Lockheed Martin “tested a technology demonstrator in 2011 [but] there has been no further development of operational stratospheric airships for the U.S.” since then, Fisher said.

“The PLA is correct to invest in stratosphere balloons and airships; the U.S. must do more to develop these assets as well.”

Source: Voice of America