TAAG Angola Airlines (DT, Luanda 4 De Fevereiro) is one of 74 state-owned enterprises President João Lourenço's cabinet is looking at privatizing, Reuters has reported citing government sources.
According to the report, the entities were listed in a prospectus sent to investors as part of Luanda's issuance of a multibillion-dollar Eurobond.
"The government’s long-term policy is that companies which, in the government’s view, are not required to remain under public ownership as a matter of policy should eventually be privatised," the prospectus said.
The extent to which government is willing to divest itself of TAAG is currently unknown.
Government is in the process of restructuring TAAG given its perennial reliance on the fiscus for support. Last week, the airline's chairman, Jose Kuvingua, said a request had been submitted to government to approve a USD952 million capital increase needed to eliminate most of its accumulated liabilities, said to exceed USD1.063 billion. Said debts have impeded the carrier's growth plans in recent years resulting in the current state of stagnation.
Since coming to power last year, Lourenço has set about opening up Angola's relatively closed economy while diversifying its revenue streams away from oil.
