Investment Criteria

All FACRA investments follow a set of guidelines to ensure that the state capital is being applied correctly to stimulate the growth of the national economy.

Other guidelines include business investment to help diversify the economy outside the mining sector, which generates jobs and promotes import substitution and improve the quality of products and services offered by national companies.

FACRA is guided by the need to internationalize national companies, helping them to do business outside of Angola, and add value and diversity to the country’s export sector.

FACRA’s investment criteria have been developed by the Fund’s Investment Committee. It details the Fund’s overall strategy, objectives and priority investment sectors. In addition, it also details the investment size, target returns, holding period and target company type.

This strategy has been tailored to make sure tax-payers’ money is invested wisely and only in Angola’s key growth sectors. The guiding principle is to invest in micro, small and medium sized enterprises (MSME’s) that have the potential for high long-term financial returns and that can play a part in stimulating the growth of the nation’s MSME sector.

FACRA seeks investment opportunities with entrepreneurs and business partners (both Angolan and foreign) with innovative businesses and technology firms. Supporting innovation is central to FACRA’s objectives and, as such, it is keen to work with foreign companies who are able to support innovative new technologies, products or services by co-investing in and co-managing Angolan businesses.

INVESTMENT SIZE
Upto USD 8 million
STAKE
Minority shareholdings or relative majority, up to 49%
GEOGRAPHY
Investments in Angola or outside Angola in case they meet FACRA’s objectives
HOLDING PERIOD
3 to 7 years
COMPANY TYPE
Focused on entrepreneurs and SME with a majority of Angolan capital, with a high growth potential, job creation and development catalyst
INVESTMENT PRIORITIES
  • Innovative business with positive impact to the Angolan economy
  • 10-20% Primary sector (technology related to agriculture, fish breeding, livestock, poultry, etc.)
  • 30-40% Secondary sector (construction material, transformation industry, etc.)
  • 40-60% Tertiary sector (healthcare, logistic services, IT, education, tourism, industrial services, biotechnology, online services, other services with high innovation character)
EXCLUDED SECTORS
Real estate, mining oil & gas sectors