Special Focus: Lusophone Africa
“
investment to different areas is due to
We see particular growth and potential for
an increase of investors’ confidence,”
investors in public-private partnerships. This
he continues. “In recent years we
have seen a change in the focus of
is increasingly the means for governments
the investment – we now experience
in countries such as Mozambique to
a growth in the infrastructure, real
estate and transportation sectors.”
rehabilitate their infrastructure.
The established countries are
Paula Duarte Rocha
now looking to expand beyond
energy or tourism platforms.
MLC Advogados
Carvalho says growth in Angola
is driven by the need to reach
sophisticated business opportunities outside of energy in
different areas other than the main
Mozambique: “We see particular growth and potential
cities, which have been growing based on a policy
for investors in public-private partnerships. This is
to disperse investment through a system of tax and
increasingly the means for governments in countries
customs benefits for inland and/or less developed
such as Mozambique to rehabilitate their infrastructure,
regions. Angola has begun to focus on the development
given the significant capital requirement of infrastructure
of a legal framework for investment funds based on the
recent Legislative Presidential Decree 7/13 and sustained investment and the lack of technical capacity in the
government to manage investments.”
by the regulations that are still under public discussion,
Africa remains a continent of contradictions. It is
but soon to be enacted.
dense, diverse and difficult. While the potential of
“The new investment funds will allow not only the
countries remains huge, realising that potential is the
development of the securities market but essentially
biggest challenge. Portuguese colonies are still relatively
promote the growth of the real estate market based on real
young – Cape Verde and Guinea-Bissau both declared
estate investment funds,” Carvalho claims. “Considering
independence in 1973 with Angola, Mozambique
the risks and challenges, a regulatory framework will
and São Tomé and Principe following suit in 1975.
undoubtedly allow investors to build confidence on such
Developing a durable and robust economy is a process
types of investment.”
of evolution, not revolution.
Duarte Rocha observes a similar trend for more
”
Stock exchange would benefit Angola
The presence of a stock exchange is
generally considered to be vital if a
country wants to be seen as having
a genuine financial market. Many
Sub-Saharan Africa jurisdictions have
bourses, namely Botswana, Cameroon,
Cape Verde, Ghana, Kenya, Malawi,
Mozambique, Namibia, Nigeria,
Rwanda, Somalia, South Africa, Sudan,
Swaziland, Tanzania, Uganda, Zambia
and Zimbabwe. One notable absence,
however, is Angola.
“Angola is a mature economy, much
more mature than many other African
nations, but it has yet to establish a
stock exchange,” explains Miguel Castro
Pereira, Managing Partner of Abreu
Advogados. “While Mozambique is
less developed than Angola, it has a
stock exchange. A bourse is an attractive
alternative to the big banks and loans.”
Castro Pereira says the oil and gas
markets can benefit from capital markets,
but says initial public offerings would not
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be the priority. Mozambique launched its
exchange in 1999 but just three companies
are listed. More significant is to use the
markets as a vehicle for placing debt.
“Mozambique may only have three listed
companies but that is not really relevant
because the exchange is generally not
used to sell equity in a company,” Castro
Pereira continues. “A bourse would allow
the biggest companies to place securities
internally, which would be critical in
helping to diversify from the rather narrow
banking market that currently operates.
In the case of Angola, it has wanted an
exchange for many years and recently there
have been moves to establish a structure.”
Castro Pereira says his firm helped two
clients establish real estate funds in Angola,
with two more matters ongoing.
“Some big Angolan companies, like
Sonangol, may decide to float,” Castro
Pereira says,” but the real benefits are not
opening share capital to investors but the
chance to buy bonds and securities.”
Miguel Castro Pereira
March / April 2014 • IBERIAN LAWYER • 53