Ver Angola

Banking and Insurance

BAI prepared to dampen kwanza volatility and face “perfect storm”

Banco Angolano de Investimentos (BAI) is prepared to cushion exchange rate shocks and face a "perfect storm" like the moment currently being experienced in Angola, said the chief executive of the financial institution.


Luís Lélis, who was speaking to journalists on the sidelines of the XIII Banca Forum, organized by the weekly Expansão, underlined that life goes through "more or less intense storms" and that "it is not for a less good moment" that one has to change the strategy.

"The country has capabilities and competences, what is needed is to find solutions in the medium and long term to challenges such as the depreciation of the Angolan currency", he considered, stressing that the key is to reduce imports.

"The currency is only more or less strong if what is consumed internally is produced internally", said the manager, adding that the current crisis shows that it is necessary to increase the speed of the country's production capacity.

Asked if he ever regretted going public (in June 2022), he said he was "honored" that BAI was the first institution to do so and said that the project to go public on the stock exchange was not carried out taking these peaks into account, as the strategy is "very long-term", adding that the bank created the 'buffers' (shock absorbers) necessary for this type of oscillations and to resist volatility "which will be reduced when more is produced internally".

Luís Lélis stated that the bank has benefited from its listing on the stock exchange, stressing that the capital market "is a fundamental part of any economy that wants to develop", as banking alone would not be able to raise enough funds.

"BAI carried out this project, firstly because it believes in the medium and long term in Angola, secondly because there are lessons learned, tools and investments that we have to make to know how to do it" and help other companies in the future, he said.

Luis Lelis participated in a round table on the impact of privatizations and the listing of commercial banks, where the experience of Angolan banks that went public on the stock exchange last year (BAI and Caixa Angola) was discussed, alongside two other financial institutions that have not yet followed this path (BIC and Millenium Atlântico).

The bankers pointed out some critical points associated with BODIVA (Bolsa de Dívida e Valores de Angola), namely its high price - having been informed that it has already been reduced by 60 percent - and considered that the Angolan banking sector is tending towards consolidation, admitting the disappearance of some banks and mergers of others.

They also spoke about the need to create a more favorable environment for investors, pointing in particular to land and real estate titles, the execution of guarantees associated with credits and the elimination of bureaucratic barriers, and the need to create more confidence in the country.


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