Despite the implementation of the Privatization Program — launched in 2019 and which has already divested 31 entities once under the Sonangol Group — the number of companies operating outside the oil sector increased from 8 in 2019 to 12 by the end of December 2024. Sonangol’s non-oil ventures remain a source of concern for the management of Angola’s largest company. According to Expansão’s calculations based on financial reports, Sonangol’s non-core businesses — which by the end of last year included 12 entities in health, transport, telecommunications, real estate, and education — have accumulated losses of $850 million between 2020 and 2024.
No profits were recorded during this period, and 2022 was the worst financial year, with losses nearing $290 million. Although losses decreased in 2023 and 2024, they remained relatively high.
If the analysis is extended back to 2019 — used as a pre-COVID benchmark year — the total accumulated losses from Sonangol’s non-core businesses over the last six years rise to approximately $870 million.
Officially, these business units are managed by Sonangol Holdings, which oversees a group of subsidiaries whose main purpose is to “support the core businesses of Sonangol E.P.” as well as companies “engaged in social initiatives, human capital development, or economic development support.”
Not included in this list are companies in which Sonangol holds stakes but does not have direct control. Moreover, Sonangol’s consolidated financial report does not provide disaggregated financial data for each of these companies.
Until 2019, Sonangol’s investments outside oil and gas functioned almost like Angola’s sovereign wealth fund, accumulating interests and shareholdings across various sectors both domestically and internationally — often in partnership with entities of questionable capability and integrity.
This model remained viable, despite setbacks and serious transparency and accountability issues, while the country’s economy and oil production were booming (2004–2014).
But when the economic context shifted, Sonangol’s non-core activities nearly drove the company into bankruptcy. This prompted a major reform of Angola’s petroleum sector, including Sonangol relinquishing its role as regulator and concessionaire. In 2019, the National Oil, Gas and Biofuels Agency (ANPG) was created.
This governmental decision stripped Sonangol of nearly half its revenue streams and forced the company to refocus on oil exploration, production, and fuel distribution, as well as energy transition-related needs — although the tangible results of this sector restructuring remain to be seen.
12 Non-Core Entities in 2024
By the end of last year, 12 entities within the Sonangol Group were operating outside the core oil sector. At the top of this structure is Sonangol Holdings, S.A., which centralizes all non-oil investments.
Reporting directly to Sonangol Holdings are:
- SIIND – Sonangol Investimentos Industriais: manages investments in the Special Economic Zone and its industries (most of which never operated, with some already privatized).
- SONIP – Sonangol Imobiliária e Propriedades: manages and builds real estate in new residential areas.
Other entities include:
- Sonair (air services)
- Clínica Girassol (healthcare)
- MS Telcom (telecommunications)
- ISPTEC – Instituto Superior Politécnico de Tecnologias e Ciências (higher education)
- CFMA – Centro de Formação Marítima de Angola (training)
- Academia Sonangol (professional training)
- Sonangol Vida (pension fund management)
- PDA Actividades (education sector)
- Solo Properties, created to manage Sonangol’s real estate assets in London, UK.
Source: Expansão
