Has the focus on human capital and its training been one of Deloitte Angola’s missions?
Hiring young Angolans has been a clear focus of our firm and we currently have more than 450 professionals, most of whom are Angolans. In fact, this year alone we have hired more than 60 young Angolans, not only because we believe that this is the way to strengthen the sustained progress of our activity in Angola, but also because we believe in the talent in the country. To this end, we have developed recruitment processes with the main Angolan universities and have also sought to attract young Angolans who have studied abroad, thus giving them the opportunity to contribute to the development of their country, based on the experience gained abroad. Today, we are proud to say that we are the first choice for the best talent in Angola and the company that hires more recent graduates.
What is the key element that sustains and allows you to improve the operations of the companies in Angola?
Deloitte is present in all business sectors, namely in the financial, telecommunications, oil & gas, mining, distribution and retail sectors, providing a quality service and creating value, regardless of the location and activity of our clients, because our teams are specialised in a wide range of fields. We are currently investing heavily in technology, where one of the pillars is a strategic partnership with the Catholic University of Angola, called «More Future», which includes the technical training of students in the computer engineering course, from the third to the fifth year and, in the future, the offer of scholarships through tests, with the aim of strengthening the technological skillset and practical experience of students. The future in Angola and in Africa will involve the development of information technology, given the young age pyramid, and is therefore a natural focus for Deloitte. In addition to the subject of technology, we are focused on developing services on subjects related to ESG and green energies, with the hiring of specialists and strengthening of skills in this area, in order to support our clients in such important matters as sustainability. In this regard, it is important to highlight that we have a client portfolio made up of the key market players, but we also support medium-sized companies. However relevant the facts and figures about our activity may be, Deloitte’s real purpose is in the impact it creates in the world.
What are the main challenges for the capital market?
The relevant steps that the Angolan government has taken at a regulatory level, with a view to boosting the capital market, are intended to prepare the national economy for new developments, highlights of which include the execution of a privatisation programme of leading national companies (PROPRIV).
The main objective of the capital market is to strengthen economic efficiency and leverage the economy, providing liquidity to public companies and making their recapitalisation process feasible. To this end, it is important to ensure that, in the future, the focus is on improving the financial literacy of the agents operating in this market. In fact, the increase of the agents’ skills in this field is one of the greatest current challenges for the capital market. Financial intermediation, primary and secondary market, shares, bonds and securities: what are these concepts and how can they be defined? But is knowledge and proficiency of these concepts the most important thing? In an initial phase, technical skills are perhaps the most relevant. However, it will not be possible to achieve the results that the government wants without a change of mentality and behaviour. This change has to begin with an improvement in the confidence of the agents of the financial system, whether those with surplus liquidity, or even those with financing needs. In addition to the state, which intends to reduce its importance and its interventions in the economy, banking institutions and insurance companies have a fundamental role and an enormous responsibility in promoting confidence and credibility in the financial system. In this context, the continuous improvement of national economic agents, with a focus on strengthening knowledge and skills of a financial nature and the quality of regulation, in line with best international practices, should be seen as the main factor in enhancing an efficient and dynamic capital market, which will provide a boost to the economy and, ultimately, to Angolan society.
With this purpose in mind, Deloitte established a partnership with the Capital Markets Commission (CMC), together with the Luanda Entrepreneur Academy, Acelera Angola and the Founder Institute, to participate in the EmergentesProgramme. This aims to guide and support small and medium-sized companies, taking into account their stage, strategy and business development cycle, with a view to improving governance and management practices, maturing their products and services, in order to enable them to obtain funding via capital market instruments. In addition, Deloitte has been supporting some of the companies in the PROPRIV, which puts it in a unique position to provide services to companies that aim to enter the capital markets in the medium term.
The results achieved by the Angolan banking sector, in 2022, were positive, also thanks to the improved rating of public debt. What should financial institutions do this year to consolidate this trend?
As I had the opportunity to state in the presentation of the Banking in Analysis 2022 study, the orientation of the main banks operating in the market should be based on an analysis of their (re)positioning and business model, which will encourage greater efficiency and return, given the needs of a technological nature and the promotion of inclusion and consequent increase in banking, as well as increasing credit to the economy, through programmes, such as PRODESI.It should be stressed that the net profit that banks have been recording in recent years is very much based on the complementary margin, in particular the foreign exchange results and the financial margin obtained essentially through investment in public debt securities, which will cease to be the lever for net profit in the future.It is therefore essential that new business models are defined, enabling banks to ensure a different positioning, both in terms of customer segmentation as well as products and services, bringing in other sources of income.
«The future […] will involve the development of information technology»