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20 December 2018.

PRIVATE EQUITY FUND IN ANGOLA BOOSTS DEVELOPMENT

Since 2008, IFU has been an investor in Fundo de Investimento Privado - Angola (FIPA I), which was the first private equity fund exclusively dedicated to investing in Angola. A focus point of the fund is to support the Angolan government’s National Development Plan within key sectors. The fund manager of FIPA, Angola Capital Partners (ACP), has now launched its first Impact Report of ten years of activities.

Reviving the Angolan fishing industry and increasing cultivation of arable land, of which only about 10 per cent is currently utilized, are among the priorities of the Angolan government. The fishery project Lunam Ltd & AST S.A. and the agribusiness project Fazenda Girassol Lda., producing vegetables and fruit, are examples of the private equity fund FIPA’s investments that support the strategy. The fund has also invested within media, waste management and services to the oil and gas industry.

IFU has been an investor in FIPA since 2008 and has invested USD 5 million in the fund, which has a total capital commitment of USD 39m. In 2016, IFU made an additional investment in the second fund (FIPA II) with a commitment of USD 5m. FIPA II has a capital commitment of USD 42.5m and has made one investment so far.

– We are happy with the opportunities and developmental aspects of this investment. One of IFU’s requirements for investing in FIPA I is the promotion of Danish economic interest. The Danish company Soil Recovery A/S has co-invested and assisted in starting up the very successful Angola Environmental Services (AES), where FIPA I invested USD 8.8 m and holds a 16 % equity stake, said Johnny Ohgrøn Hansen, IFU’s Regional Director of Southern Africa.

Now, the fund manager of FIPA I and II, private equity manager Angola Capital Partners (ACP), has launched an Impact Report presenting the impact of its ten years of activity in Angola, which includes its investments through FIPA I and II.

ACP focuses on a “Triple Bottom Line” investment approach to achieve positive results in three core metrics: (i) economic viability and financial return; (ii) sound environmental and social performance (ESG); and (iii) governance and integrity.

The Impact Report describes the implementation results of ACP’s investment approach and the role of private equity as catalyst for the development of Angola. Some of the impact findings are:

  • 1,600 new jobs created, of which over 30% is youth (first time) employment;
  • 30% female representation across ACP portfolio in 2017 (increasing from 23% in 2012);
  • 8 million fresh food produce packs provided to costumers per annum;
  • 5 million building materials that enable new 1,700 homes per annum;
  • 160 tons fish caught over the investment period that feed 1.8 million consumers per annum; and
  • USD 60 million of total government taxes and fees paid;

The report further describes ACP’s contribution to selected parts of Angola 2025 Strategy and the National Development Plan, which among other things includes food security and import substitution through investment in agriculture and fishing, environmental protection, economic diversification, job creation and economic growth.

The report was produced by EBS Advisory, the leading ESG and impact consultancy in Africa.

The full report can be viewed here.

Photo: Daniël J Albertse