Portuguese Banks In Angola: How Many?

Angola was a Portuguese colony for several centuries, and the two countries continue to share cultural and linguistic ties. Following Angola's independence in 1975, the government nationalised the banking sector, and the Banco de Angola became the Banco Nacional de Angola (BNA), the country's central bank. Today, Angola's economy is largely driven by oil money, and the country's emerging middle class has made Lisbon its playground, with Angolan investments in Portugal rising from €645 million to €1.53 billion between 2010 and 2014. Angolan banks with ownership ties to Portuguese banks include BFA (Banco de Fomento Angolano), Banco BIC, Caixa Angola, and Millennium–Atlantico Bank.

Angola's Banco Nacional de Angola (BNA) is the supervising institution of all financial institutions in Angola

Angolas Banco Nacional de Angola (BNA) is the country's central bank and the supervising institution of all financial institutions in Angola. It was established in 1926 as Banco de Angola, the only banking authority in the territory under Portuguese rule until 1975.

The BNA traces its roots back to 1865 when the Banco Nacional Ultramarino (BNU) was founded in Lisbon, Portugal, as the issuing bank for all Portuguese overseas territories. The following year, it opened branches in several places, including Angola, which was then a Portuguese colony.

In 1926, the Portuguese established a separate issuing bank for Angola, creating the Bank of Angola. The BNU transferred its branch in Stanleyville to this new bank, which became the Banco Nacional de Angola in 1975 when Angola gained independence. The BNA continued to function as a central bank, issuing bank, and commercial bank.

The BNA is responsible for ensuring the preservation of the value of the national currency, the kwanza, and participating in defining the country's monetary, financial, and exchange rate policies. It executes, monitors, and controls monetary, exchange rate, and credit policies, as well as managing the payment system and administering the circulation of currency within the country's economic policy framework.

The BNA has licensed 26 banks to operate in the Angolan market, including Banco Angolano de Investimentos, Banco Económico, and Banco de Fomento Angola. These banks, along with two others, control over 80% of total banking assets, deposits, and loans. Additionally, the BNA has authorized 71 Casa de Cambio, or currency exchange businesses, to operate in the country.

The BNA has faced challenges in recent years, including a significant fraud case in 2009, when approximately $160 million was transferred to overseas accounts. However, the BNA continues to play a crucial role in Angola's financial system, overseeing the country's transition to a more modern and internationally-aligned Payments System.

There are 26 commercial banks registered to operate in Angola

Angola has 26 commercial banks registered to operate in the country. The Banco Nacional de Angola (BNA), or the National Bank of Angola, is the central bank and supervising institution of all financial institutions in Angola. It was created in 1926, though its history can be traced back to 1865. The BNA is state-owned, with the Government of Angola as its sole shareholder.

The BNA licenses and supervises all financial institutions in Angola, including the 26 commercial banks. These banks offer a range of services, such as ATM services, credit card acceptance, and electronic funds transfers. The use of cash and checks for transactions has declined in Angola, with electronic funds transfers between banks being the most common and secure method of payment.

Five of the 26 commercial banks—Banco Angolano de Investimentos (BAI), Banco Economico, Banco de Fomento Angola (BFA), Banco BIC Angola (BIC), and Banco de Poupança e Crédito S.A.R.L. (BPC)—control over 80% of total banking assets, deposits, and loans in the country. These banks have strong market power and influence in the Angolan financial sector.

Some of the 26 commercial banks in Angola have connections with Portuguese banks. For example, banks such as BFA (Banco de Fomento Angolano), Banco BIC, Caixa Angola, and Millennium–Atlantico Bank have ownership ties with Portuguese financial institutions. This reflects the historical and cultural ties between Angola and Portugal, with Angola gaining independence from Portugal in 1975.

The presence of Portuguese banks and investment in Angola is notable, and there is a flow of capital and human resources between the two countries. Angolan investments in Portugal have increased significantly, with money flowing into various sectors of the Portuguese economy, including banking. This has led to observations that Portugal is becoming an "Angolan financial colony," showcasing the influence of Angolan capital and investors in the Portuguese economy.

Five banks control over 80% of total banking assets, deposits, and loans in Angola

Angola's banking system is the third largest in Sub-Saharan Africa, with 26 banks registered to operate in the country. Nearly half of the Angolan financial system is linked to banking groups in Portugal.

Five banks—Banco Angolano de Investimentos (BAI), Banco Economico, Banco de Fomento Angola (BFA), Banco BIC Angola (BIC), and Banco de Poupança e Crédito S.A.R.L. (BPC)—control over 80% of total banking assets, deposits, and loans in Angola. These banks are predominantly Angolan, Portuguese, and South African.

Banco Angolano de Investimentos (BAI) is the biggest bank in Angola in terms of assets, registering an asset value of approximately 5.5 billion U.S. dollars. Banco de Fomento Angola (BFA) follows, with assets of 4.4 billion U.S. dollars.

The banks offer ATM services, and internationally issued credit cards (Visa, American Express, and Mastercard) are accepted by business hotels and a limited number of service providers.

Angola's Banco Nacional de Angola was established in 1926 but traces its ancestry back to 1865

Angola's Banco Nacional de Angola (BNA) was established in 1926 but traces its ancestry back to 1865. In 1864, the Banco Nacional Ultramarino (BNU) was founded in Lisbon, Portugal, as a bank of issue for all Portuguese overseas territories. The following year, in 1865, the BNU opened a branch in Luanda, Portuguese Angola. At the time, Angola was an overseas province of Portugal.

In 1926, the Portuguese established a separate issue bank for Angola, creating the Bank of Angola (Banco de Angola). The BNU transferred its branch in Stanleyville to this new bank, which, in 1934, transferred the branch to Boma, before closing it in 1947.

When Angola gained its independence in 1975, the government nationalized the banking sector. The Bank of Angola became the Banco Nacional de Angola, the central bank of Angola, and the sole entity permitted to produce currency for the country. It is state-owned, and the Government of Angola is the sole shareholder. The bank is based in Luanda, the nation's capital.

The BNA continued to function as a central bank, bank of issue, and commercial bank until 20 April 1991, when it was restricted to the role of a central bank. From 1999, the BNA began implementing reforms to meet international standards.

Angola's banks have been affected by financial fraud, with the largest case seeing $160 million transferred to overseas accounts in 2009

Angola's banks have been affected by financial fraud, with the country's central bank, Banco Nacional de Angola (BNA), being the victim of a significant fraud case in 2009. This incident involved the transfer of approximately $160 million to overseas accounts, marking the largest financial fraud in Angola at that time. The fraud was perpetrated through multiple money transfers from the Angolan treasury account at Banco Espírito Santo in London to bank accounts abroad, which were controlled by the suspects. As the bill reached the minimum values of the BNA, Banco Espírito Santo London notified the Angolan authorities of the successive outflows of money.

The fraud was uncovered by the Portuguese newspaper Diário de Notícias in June 2011, leading to investigations and legal consequences. Several individuals affiliated with the Angolan Finance Ministry and the BNA in Luanda were sentenced to up to eight years in prison in 2011. Additionally, there are ongoing investigations in both Portugal and Angola related to this case.

This incident of financial fraud at the BNA is not an isolated event in Angola's history. The country has faced challenges with institutional corruption and has been ranked and perceived as one of the most corrupt countries in Africa. The aftermath of the 30-year civil war and the influence of the Soviet command economy have contributed to significant institutional damage and centralized governance with authoritarian tendencies. This environment has enabled the president and their associates to exert control over the nation's resources, often exploiting the economy for personal gain.

Angola's banking system has also faced issues with mismanagement and appropriation, with defaulted loans amounting to approximately $3.5 billion in 2013. The country's banks have been implicated in appropriation strategies, with funds being directed towards complicated networks of companies ultimately controlled by members of the presidential patronage network. These fraudulent practices have contributed to the perception of Angola as a highly corrupt country, with a need for improved transparency and oversight mechanisms.

In terms of the presence of Portuguese banks in Angola, it is important to note that while there are no U.S. banks operating in the country, commercial banks in Angola are predominantly Angolan, Portuguese, and South African. Additionally, some Angolan banks, such as BFA (Banco de Fomento Angolano), Banco BIC, Caixa Angola, and Millennium–Atlantico Bank, have ownership ties with Portuguese banks. However, the specific number of Portuguese banks operating in Angola was not explicitly mentioned in the sources provided.

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