This report on the Angolan banking industry covers deposit-taking institutions which include other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. It contains information on the state and size of the industry, the factors that influence its performance and regulatory and other issues specific to the sector. There are profiles of 24 companies including state-owned Banco de Poupanca e Credito, which has been recapitalised by the government twice between 2016 and 2018 and Banco Económico, one of the banks identified for privatisation, in which Sonangol has 70.37%. There are also profiles of Standard Bank de Angola, a subsidiary of Standard Bank of South Africa and Standard Chartered Bank de Angola, formed by United Kingdom-based Standard Chartered Bank.
The Banking Sector in Angola
Angola’s banking industry is dominated by six banks and competition from non-bank institutions such as microlenders remains low. A distinct characteristic of the Angolan banking sector is the participation of the state, ruling party loyalists and state-owned enterprises such as the national oil company Sonangol in private banks, and policy dictates that foreign banks can only operate in Angola through joint ventures with local and state-owned companies. During the past 17 years, the Angolan banking sector has expanded rapidly to become the third-largest sector in sub-Saharan Africa behind South Africa and Nigeria. The number of licensed commercial banks increased from nine in 2003 to 26 in July 2019.
The Angolan government is implementing a macroeconomic stabilisation programme focused on strengthening fiscal sustainability, reducing inflation, promoting a more flexible exchange rate regime and improving financial sector stability. Its national development programme includes strengthening financial sector resilience, recapitalising weak banks, and restructuring the largest state-owned bank. It plans to privatise most of the 195 state-owned companies or companies in which the state participates by 2020. The restructuring and privatisation of state-owned banks will increase competition among the commercial banks.