[Published: Friday October 19 2012]
 Angola launches $ 5 bln sovereign wealth fund
Lisbon, 18 Oct - (ANA) - Angola yesterday launched a $ 5 billion sovereign wealth fund to invest in domestic and overseas assets by funnelling its vast oil wealth into infrastructure, hotels and other high-growth projects. Africa's second-largest crude oil producer is looking to diversify its oil-dependent economy by developing infrastructure outside the energy industry. The country was devastated by a 27-year civil war that ended a decade ago. Nigeria, the continent's top oil producer, has already set up a similar $ 1 billion fund, although its progress has been hampered by political wrangling. "The Nigerian fund is mainly for liquid, low-yield assets, while the Angolan fund's mandate is broader, with investment in the real economy domestically," said Richard Segal, head of emerging markets strategy at Jefferies in London.
The Angolan Sovereign Fund (FSA), which will also invest in financial securities, will be headed by President Jose Eduardo Dos Santos' economic affairs secretary, the fund's board said in a statement. Jose Filomeno dos Santos, one of the president's sons, will also sit on the three-person board, an appointment likely to raise further questions about government transparency. President Dos Santos has led the country for 33 years and was sworn in for a new five-year term last month. The fund said its first investments will be in projects to develop agriculture, water, power generation and transport, with an early focus on the hotel industry in sub-Saharan Africa. (ANA)
FA/ANA/18 October 2012------------
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Israel/PM