Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), has committed to invest $180m in a strategic deep sea port in Angola. 

José Filomeno dos Santos, Chairman of the Board of Directors, FSDEA, said: “Investments in the industrial sector and infrastructure support trade in the sub-Saharan region have shown high rates of profitability and resistance to the risks associated with the countries on our continent.” 

“Allocating capital to maritime infrastructure and logistical and industrial support in Angola allows diversifying other investments in the international financial markets present in FSDEA’s portfolio. Through this project, in particular, we aim to create more than 20,000 jobs and add value to our national growth,” he said.

This investment will create the first deep sea water port in Angola and will be built in two phases. 

Phase 1 will result in a terminal of 630 meter length connected to the shore via a two kilometres long connection bridge. 

The access channel will be 15 meter deep and the terminal will benefit from a water depth of 14 meters. 

Port facilities will include a free trade zone, ship repair, storage and unloading.

The latest commitment is made as part of FSDEA’s $1.1bn infrastructure fund.

As of September 30, 2016, the total assets of the FSDEA were valued at $4.755bn.

According to the third quarter investment update (April 1 - September 30, 2016), 16.4% of the infrastructure fund was committed to a maritime project to support logistics and industrial infrastructure.

Last year, FSDEA was also active in the agriculture space, with 14.8% of the $220m timber fund capital allocated to a large-scale eucalyptusconcession and 7.3% of the $250m agriculture fund committed to seven large-scale farms covering an area of approximately 72,000 hectares in Angola.

Additionally, $18.2m were dedicated to seven agricultural projects, located in Angola. 

The country’s public investment in agriculture infrastructure has been amongst the fastest growing across Africa in the last decade. 

It is therefore expected that future yields from this sector can be strengthened by a more commercial management and the usage of more efficient production techniques in the medium term. 

While discussing the Fund’s private equity investments, dos Santos said: “We have been materializing the purpose of the sovereign wealth fund to invest in the strategic sectors for the national development, through the seven private equity funds that we have established in 2014 to 2015.”

“Together with the investment in international markets, these allocations allow us to preserve the FSDEA’s capital while generating new sources of income for the country and creating infrastructure for the benefit of national citizens. All investments made in Angola aim to generate high financial returns for the institution, as well as new jobs and business opportunities for the national private sector,” he said.