The net is closing on a powerful family that has run Angola, Africa's second largest oil exporter, for the past three decades, raising hope that the country may finally escape its tortured past.
The Opec member, whose oil exports are second only to Nigeria, has struggled to turn its large resource base into general wealth. The newly appointed administration of Joao Lourenco that took office in a peaceful handover in September last year appears to want to change this.
In late March prosecutors filed charges against José Filomeno dos Santos alleging fraud relating to a $500 million transaction out of an account belonging to the central bank. Mr Dos Santos, or Zenu as he is publically known, is the son of Jose dos Santos, the man who ran the country for nearly four decades.
At the same time Mr dos Santos' sibling Isabel, Africa's richest woman according to Forbes, is also under investigation. The allegations relate to Ms dos Santos tenure as head of Sonangol, the Angolan state oil firm.
"The key driver is anti-corruption," says Alex Vines, the head of the Africa Programme at Chatham House in London. "I do not think that Joao Lourenco wanted to move as quickly as he has had to against the dos Santos family. In the case of Jose dos Santos, there was little choice. The UK regulatory authorities and HSBC bank had flagged the $500m transfer as suspect and officially requested Angolan government guidance on what to do."
So seriously was the matter viewed in London that a delegation from the UK visited the Angolan capital Luanda earlier this year to discuss the case. Mr Lourenco would have felt obliged to hear them out.
The country has struggled to survive the fall in the price of oil since 2014, which accounts for around 45 per cent of GDP and 95 per cent of its exports, Opec data shows. Currently Angola needs a floor price of $85 a barrel to balance its budget against a prevailing price of under $65.
According to AFP, the past year has been especially tough on Angola's finances with dollar reserves having dropped from $20 billion at the start of 2017 to $14bn by November. Consequently, the Lourenco administration may feel it has to show potential financial backers that it is serious about making Angola more business friendly and that it is willing to tackle corruption.
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Mr Lourenco is also moving on the country's woeful lack of economic diversity, beginning with a basic and easy to implement measure: doing away with cumbersome visa requirements for nationals of 61 countries last month, who will now be issued with one on arrival.
"Setting foot in the country was extremely difficult, which kept potential business ventures out of the country," says Lucia Kula, an Angolan and scholar at the School of Oriental and African Studies: University of London. "By opening up the border, the first step is taken to get people interested."
Before the revolution that toppled the colonial Portuguese government in 1975, the country's beaches were a tourism draw. Decades of war and economic stagnation, however, have ensured all but the hardiest adventure travellers get to experience its attractions.
According to travel guide Lonely Planet, "Angola has the potential to be one of Africa's dazzling highlights", with attractions such as "the continent's second-largest waterfall, scattered remnants of Portuguese colonial history, a handful of emerging national parks, beaches galore and a diverse and unbelievably stoic cross-section of people".
Easing visa requirements now make a viable hospitality industry possible, Ms Kula notes.
"Angola needs to try to mirror its southern neighbours like Namibia and South Africa in attracting more tourism, as revenue from tourism usually stays within the country."
The country also has vast agriculture potential. During the colonial period it was a major exporter of coffee and sugar among other items. Today, though, it imports most of its processed food, while the poor depend on subsistence farming to survive.
The UN agency Food and Agricultural Organisation estimates the country could be one of the world's largest agribusiness producers with up to 50 million hectares of arable land.
However, an obstacle to both tourism and farming is a wartime menace – landmines. The country has at least 10 million of them, laid down during the civil war, according to various NGO estimates. Luckily the issue is being addressed and a global effort is underway to remove as many as possible.
According to Halo Trust, a de-mining organisation, the efforts are paying off and most of the provincial cities have been cleared. Work now is focusing on rural areas, especially in the south where Angolan forces battled the apartheid military machine during the height of the war.
For now, though, the work of rebuilding an economy yet to recover from war begins anew. The dos Santos clan together with a clique of generals ran Angola as a personal fiefdom. Their removal will be a welcome sign to international investors and donors that the country is setting off on a different path.
The crash of the oil price may also turn out to be an advantage of sorts.
"The post-conflict years were mostly influenced by high oil prices," says Mr Vines.
"Its only as they weakened significantly that the Angolan government has really felt it needs to seriously seek to diversify the economy and end its addiction to easy oil money."
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Jordan cabinet changes
In
- Raed Mozafar Abu Al Saoud, Minister of Water and Irrigation
- Dr Bassam Samir Al Talhouni, Minister of Justice
- Majd Mohamed Shoueikeh, State Minister of Development of Foundation Performance
- Azmi Mahmud Mohafaza, Minister of Education and Minister of Higher Education and Scientific Research
- Falah Abdalla Al Ammoush, Minister of Public Works and Housing
- Basma Moussa Ishakat, Minister of Social Development
- Dr Ghazi Monawar Al Zein, Minister of Health
- Ibrahim Sobhi Alshahahede, Minister of Agriculture and Minister of Environment
- Dr Mohamed Suleiman Aburamman, Minister of Culture and Minister of Youth
Out
- Dr Adel Issa Al Tawissi, Minister of High Education and Scientific Research
- Hala Noaman “Basiso Lattouf”, Minister of Social Development
- Dr Mahmud Yassin Al Sheyab, Minister of Health
- Yahya Moussa Kasbi, Minister of Public Works and Housing
- Nayef Hamidi Al Fayez, Minister of Environment
- Majd Mohamed Shoueika, Minister of Public Sector Development
- Khalid Moussa Al Huneifat, Minister of Agriculture
- Dr Awad Abu Jarad Al Mushakiba, Minister of Justice
- Mounir Moussa Ouwais, Minister of Water and Agriculture
- Dr Azmi Mahmud Mohafaza, Minister of Education
- Mokarram Mustafa Al Kaysi, Minister of Youth
- Basma Mohamed Al Nousour, Minister of Culture
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
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THREE
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Company%C2%A0profile
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German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
