Angola’s State Oil Giant Sonangol Prepares for Potential IPO

Angola’s state oil company, Sonangol, is preparing for a potential initial public offering (IPO) as part of the country’s economic reform efforts. Sonangol confirmed during a press conference in Luanda on February 25 that technical teams are continuing work on the requirements for a future listing. Baltazar Miguel, a member of Sonangol’s board of directors, said the company is making significant progress as teams address the steps required to bring the company to the capital markets. According to Miguel, the process is extensive and requires detailed preparation across several areas of the business.

Restructuring and Financial Position Ahead of a Possible Listing

The company previously indicated that the IPO could take place around 2027, although executives have not confirmed a firm date. In the meantime, Sonangol continues to implement a wide-ranging restructuring program that strengthens its core oil and gas operations. The Angolan government launched the reforms to improve the performance of state-owned enterprises and attract investors. These measures include internal reorganization, operational adjustments, and a renewed focus on core energy activities.

Financial restructuring remains a central part of the company’s strategy. Sonangol’s 2024 consolidated financial report shows that the group’s financial debt, including both short- and long-term loans, reached approximately $4.12 billion as of December 31, 2024. The total rose from about $3.87 billion a year earlier. At the same time, total consolidated liabilities reached nearly $16.6 billion. These figures highlight the scale of the company’s balance sheet as it works to strengthen its financial position ahead of any future listing.

PROPRIV and Angola’s Privatization Strategy

The planned IPO forms part of Angola’s wider Privatization of State Owned Enterprises Program, known as PROPRIV. The government launched the program in 2019 to reduce the state’s direct role in the economy while attracting private investment, creating employment opportunities, and increasing tax revenue. Under the initiative, authorities can sell government-owned assets through several mechanisms, including public share offerings, stock exchange auctions, and public tenders.

The government originally scheduled the program to run until 2023 but later extended it to 2026 by presidential decree. On February 24, the program’s interministerial commission announced a reduction in the number of assets targeted for privatization this year, cutting the list from 49 to 10 companies. The revised plan focuses on strategic sectors such as telecommunications, banking, mining, aviation, and media. Authorities have also adjusted the privatization timelines for several major state-owned companies, including Sonangol, and have not announced a specific listing date.

Progress Since the Program Began

Since launching the program in 2019, the Angolan government has initiated the sale of 103 public assets through direct transactions and initial public offerings. Between 2019 and 2024, these deals generated contracts worth around 1 trillion kwanzas, equivalent to roughly $1.04 billion. The government has already collected more than 640 billion kwanzas, or about $664 million, showing ongoing efforts to expand private sector participation in the economy.