Angola Sovereign Fund (Fundo Soberano de Angola – FSDEA) announced the creation of five additional funds for investments dedicated to high efficiency industries and promotion of socioeconomic development in Angola and sub-Saharan region.
With a initial investment of 1.4 billion dollars for the next three to five years, the funds shall contribute to venture capital investments in mining, wood, agriculture, health and structured capital, through a mezzanine fund. The fund also includes establishment of a commercial society focused in the creation of micro-businesses incubators for national entrepreneurs.
These are new branches representing high potential and sustainability sectors, with several non-financial benefits, such as generation of new jobs and professional training.
Subsequent to the capital preservation strategy, initially implemented by the Fund since January 2014, these new allocations shall promote socioeconomic development and generate revenues for future generations.
These investments are extremely convenient because allow to leverage economic development necessary to reduce the State dependency from crude oil revenues.
The vast mineral deposits in Africa provide major potential for mining companies, and the Mining Venture Capital Investment Fund shall invest USD 250 million in the area for the next five years.
The document targets Sub-Sahara Africa, specially Angola, holder of one of the richest subsurface in the region, and shall review opportunities for investment in the different mining stages, from exploration to modernization and expansion.
The Wood Venture Capital Investment Fund of FSDEA shall invest USD 250 million in the exploration of wood for the next five years.
On the one hand, investment in forest resources are essential to foster rural development, thereby bringing the necessary stability and jobs for the destitute communities, and also the forest projects are also a solid base to transform marginal communities into prosper communities in the rural area.
Agriculture and agribusiness are a major branch in the continent, because these occupy the largest labour force and represent close to one half of the GDP, technical inefficiencies in this branch burden sub-Sahara production.
Venture Capital Investment Fund for Agriculture, created by FSDEA, assigned USD 250 million for agriculture, to capitalize this currently boosting sector. In the end, this assignment also contributed to support social objectives, such as employment in rural areas and food safety.
Investment in health is essential for the sustainable growth of the continent, therefore, the Health Venture Capital Investment Fund shall invest USD 400 million for the next three years.
The fund shall focus in countries with highest potential return and governmental support to health, such as Angola,Cameroon, Ghana, Kenya, Mozambique, Nigeria, and South Africa.
Finally, the FSDEA Mezzanine Capital Investment Fund shall support entrepreneurship where investment is not applicable through traditional debt, thereby assigning USD 250 million for the next five years.
To support national entrepreneurs it was also recently created a commercial society that will focus on national micro-entrepreneurs. This investment aims at providing management guiding, from business strategy to commercial success.
This initiative aims at national entrepreneurs working in the informal sector, where there is usually no access to counseling and private investment. This commitment represents the first initiative for social integration in the country, and it comes to life as sustainable commercial entrepreneurship.