• Raisonné & Hammer Price

Expansive Points of Reference: Angola

With the help of Investment Banks working together from China, Germany and the US, Angola has managed to issue $500 million worth of new sovereign bonds. The bonds are paying over 9% due to their very low rating. Angola’s inflation has been improving over the past year from 27% down to 19%. 1, 2


The correlation of oil prices is not likely as much of a factor as the changes in the government leadership. Oil prices have not had the same effect on other oil based national economies. 3


President Joao Lourenco has recently taken over for former president, Jose Eduardo dos Santos, who stepped down in the fall of 2017. Lourenco was previously working directly under dos Santos, but he has been making dramatic changes. He has replaced dos Santos’ children including the wealthiest woman in Africa, Isabel dos Santos and his son José Filomeno, who ran the $5 billion sovereign wealth fund. 4, 5, 6, 7


Normally this would all be optimistic news for emerging markets, however, the motives for all these sweeping changes are very unclear, and foreign currency/inflation issues have often been overlooked and underestimated for centuries in the US. 8


Angola froze 95% of bank account assets in 1990 during a currency issue. 9


Concurrent with the unfolding political drama is a resurrection of all the stunning, historical Art Deco cinemas throughout Angola. There has been an effort to bring awareness to a cultural togetherness. The bright lime green Cine-Teatro was built in the 1950’s and radiates off the sidewalk. They have many other cinemas as well that are all distinctly unique. 10, 11


+ These expansive points of reference are intended to enhance neuroplasticity, positive thinking, empathy and situational awareness – to supplement the mainstream with some upstream.


Geoffrey Hill

Raisonné & Hammer Price Corporation

1.    https://www.bloomberg.com/news/articles/2018-07-17/angola-shows-some-investors-still-find-it-hard-to-resist-yield

2.    https://tradingeconomics.com/angola/inflation-cpi

3.    https://www.bloomberg.com/news/articles/2017-12-06/it-s-only-2-months-but-angolan-leader-a-hit-with-bond-investors

4.    https://www.bloomberg.com/news/articles/2017-12-06/it-s-only-2-months-but-angolan-leader-a-hit-with-bond-investors

5.    https://www.economist.com/middle-east-and-africa/2018/05/03/angolas-new-president-joao-lourenco-has-made-an-encouraging-start

6.    https://www.forbes.com/profile/isabel-dos-santos/#6f211ac6523f

7.    https://www.bloomberg.com/news/articles/2018-07-17/angola-annuls-1-5-billion-port-deal-with-dos-santos-linked-firm

8.    “The House of Morgan”, Chernow.

9.    “Angola from Afro-Stalinism to Petro-Diamond Capitalism”, Hodges.

10.  https://www.cnn.com/style/article/angola-cinemas/index.html?gallery=%2F%2Fcdn.cnn.com%2Fcnnnext%2Fdam%2Fassets%2F150722153433-angola-cinema-6.jpg

11. https://www.calvertjournal.com/features/show/5325/red-africa-angola-cinemas-modernist-uptopian-vision-africa

© 2018 by Raisonné & Hammer Price Corporation