Angola to Sell Minority Stake in Standard Bank Angola Amid Anti-Corruption Drive

The Angolan government has announced plans to sell a minority stake in Standard Bank de Angola SA, previously controlled by a former insurance magnate currently serving a prison sentence.

This step aligns with President Joao Lourenco’s ongoing efforts to dismantle the legacy of corruption from his predecessor’s administration.

The Angolan government seized a 49% stake in Standard Bank Angola from Carlos Sao Vicente in 2020.

Sao Vicente, once a prominent figure in the nation’s business landscape, was convicted of embezzlement and tax fraud, leading to his nine-year prison sentence.

According to a recent presidential decree, President Lourenco has approved the sale of up to 34% of Standard Bank Angola through an initial public offering (IPO).

The state will retain a 15% stake in the Luanda-based lender. Standard Bank Group Ltd., Africa’s largest lender, currently owns the remaining 51% of Standard Bank Angola and has the option to acquire an additional 24% stake during the IPO.

The decree, however, did not specify the timeline for the IPO. This sale aims to bolster investor confidence in Angola’s financial sector while further distancing the state from assets linked to corrupt practices.

Standard Bank Angola, which began operations in the southern African country in 2010, has been a significant player in the region’s banking sector.

The move to partially privatize the bank comes as part of broader economic reforms aimed at increasing transparency and efficiency in Angola’s financial system.

Carlos Sao Vicente, the former owner of the seized stake, was a key figure during the latter years of former President Jose Eduardo dos Santos’ regime, which concluded in 2017.

Vicente amassed significant wealth by heading a conglomerate that sold insurance contracts to the state oil company, Sonangol.

His vast fortune enabled him to acquire substantial shares in Standard Bank Angola, among other investments. Following his conviction, he was ordered to pay Angola $500 million.

The decision to liquidate Vicente’s assets is part of President Lourenco’s broader initiative to recover assets misappropriated during the dos Santos era.

This anti-corruption drive has led to several high-profile prosecutions and asset seizures, sending a strong message that the current administration will not tolerate financial impropriety.

The planned IPO is expected to attract significant interest from both local and international investors, given Standard Bank Angola’s robust market position and growth potential.

By reducing state ownership and increasing private sector participation, the Angolan government aims to foster a more competitive and transparent banking environment.

This development underscores Angola’s commitment to reforming its financial sector and curbing corruption, essential steps for attracting foreign investment and promoting sustainable economic growth.