The Cape Verdean government aims to privatize or concession nine state-owned companies by the end of the first half of 2025, Deputy Prime Minister Olavo Correia said in an interview with Lusa on Monday.
“We are working to have this all completed in 2024, at the latest in the first half of 2025,” for more complex companies, he cited Elektra (the state-owned electricity company) as an example.
The process began on January 10 with the launch of a public offer for sale (OPV) on the Cape Verde Stock Exchange (BVC) of 27.44% of the state-owned shares of the Caixa Económica bank.
However, the calendar does not simply correspond to the wishes of the government, “it will depend on market conditions,” especially since “the world faces very deep uncertainty” and it is unknown “what will happen to the economy tomorrow,” he added, a reference to wars and other conflicts.
“We will be in the market looking for the best investors” who can achieve their goals as quickly as possible, said Olavo Correia, noting that the government is open to the world but does not forget with whom Cape Verde is already connected.
“It does not matter [a origem]but it is clear that we have a special partnership with the European Union, we also have historical ties with the United States, even through our diaspora,” a relationship that the executive branch would like to see translated into proposals for competition from closer partners than others who “don’t know Cape Verde” or are “far from Cape Verdean geography”.
The model to be followed – OPV on the stock exchange, extended or limited tenders – will be determined depending on the technical studies carried out for each public company, subject to analysis and consultation among government officials.
The processes of nine companies are developing in parallel and simultaneously.
Once completed, they are passed on to the Council of Ministers, “which decides on a case-by-case basis which model is the best.” [de privatização] taking into account the current process, but also market conditions,” so that the success of the operation can be “guaranteed from the very beginning.”
“Within the legal framework, we are here to help make all these operations viable in the shortest possible time because we have an urgency,” Olavo Correia said.
The state “wants to be helpful” because “people living in poverty want work, they don’t have time to waste.”
The minister added that Cape Verde’s economy has a natural growth potential of 5% per year, but ideally this rate should double to be able to respond “to create jobs” and “fight extreme poverty.”
The privatization program is a way to achieve this, he said, by increasing the efficiency of state-owned companies that operate in “critical” areas of economic activity (transport, energy, water, telecommunications, etc.) and ending the risk tax on the state.
The state has concessions for sea (CV Interilhas, Grupo ETE, Portuguese) and air (Bestfly, from Angola) connections between the islands, as well as for the management of airports (Vinci group).
The list of nine companies to be privatized, in addition to Caixa Económica, includes CV Handling, which handles cargo at airports and whose process will soon be scheduled for consideration by the Council of Ministers.
ENAPOR’s port operations are also included in the list (a pre-market consultation has already been approved soon), as well as the pharmaceutical sector through Emprofac/Inpharma and the sale of the stake held by the National Airports and Air Security Company (ASA) and the National Institute of Social Security (INPS) in Cabo Verde Telecom.
Institutional reform and restructuring of the power sector are part of the dossier with the privatization of Electra in the form of a demerger, with the sale of shares in two companies, one generating and the other distributing electricity, the government said two months later. until the release of the latest report on the activities of the public sector business.
The restructuring of the Cape Verdean Naval Shipyards (Cabnave), the stabilization of Transportes Aéreos de Cabo Verde (TACV) and its privatization are also on the list, which also includes Água e Energia de Boavista.
“Cape Verde is a land of opportunity, but we cannot ignore the fact that we are a small economy in a global market. I always say that we are not the most beautiful woman at the party, so we need to work on attracting good investors.” , in a very competitive environment,” concluded Olavo Correia.
Author: Lusa
Source: CM Jornal
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