Angola's $5 billion sovereign wealth fund, Fundo Soberano de Angola, is seeking investments in mining, timber, health and agriculture in order to diversify its asset base and increase returns.
“A large portion of the portfolio is invested in international securities,” Jose Filomeno dos Santos, the fund's chairman, said in an interview with Bloomberg Television on Thursday. “We are looking at several opportunities. We wouldn't want to give away these opportunities by disclosing what they are before they are completely settled.”
The fund, which is managed by Quantum Global Investment Management, was established to invest surplus state funds and promote development in the country. It has allocated $1.1 billion toward investing in toll roads, ports and other infrastructure projects and $500 million toward hotels. It also plans to spend about $250 million on agriculture projects.
“We are really long-term investors and not looking for quick wins,” Mr. dos Santos said. “All of our funds have a 10-year horizon. What we find in our region of the world, in Africa, particularly in Angola, is that the safest way to invest is as the project starts. That's when potential mistakes regarding the viability assessments of such projects can be made and when more care should be taken regarding the implementation.”
Allocations to the fund are the prerogative of the government, which will have to decide how best to use the revenue it collects, Mr. dos Santos said.
Growth in Angola, sub-Saharan Africa's third-largest economy, might accelerate to 6.6% this year from 4.4% in 2014, according to the government.