Real Seguros The project sponsor and largest shareholder is Real Seguros (“Real”), a Portuguese insurance company held by the Grupo Banco Português de Negócios (“BPN Group“) of Portugal. Real operates out of Oporto in Northern Portugal and was founded in 1988 initially as a non-life insurance company and, in 1989, a life company was added. The life company is wholly-owned by Real and shares management, infrastructure and administration with its non-life counterpart. In 1999-2000, BPN Group bought over 95% of the shares of both the life and non-life companies of Real, injected capital and grew both companies aggressively but prudently. Initially, it expanded the business mainly through its own offices, agents, brokers, intermediaries and corporate accounts, and is now leveraging on bank distribution channels using the 183 branch network of BPN. Banco Africano de Investimentos Banco Africano de Investimentos (“BAI”) was established as a universal bank in November 1996 and was the first privately owned bank to operate in Angola. The major shareholders of BAI are Sonangol (17.5%) and three international banks: Caixa de Crédito Agrícola Mútuo, Portugal (10.0%), Investec, South Africa (10.0%) and Banco Comercial Português, Portugal (5.0%).As of December 2002, BAI was the largest bank in Angola with total assets of $586.4 million and equity of $59.0 million. Total deposits and credit amounted to $449.6 million and $101.5 respectively. BAI posted a net profit of $14.3 million. BAI has a network of 19 branches, 7 in Luanda and the other 12 spread over 8 provinces, giving this bank one of the best banking networks in the country. The bank is planning to expand its geographical by increasing its branch network to 26 by the end of 2005. BAI employs 259 people. Internationally, BAI opened a subsidiary in Lisbon and is planning to open branches in Cape Verde, Sao Tome and Principe, Brazil and South Africa.

The project consists of an equity participation of up to $1 million in Nossa, an insurance company to be incorporated in Angola. This equity participation will represent 16.7% of the total share capital of Nossa.

1.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	1.0

* These investment figures are indicative

Nossa will be headquartered in Luanda, Angola.

Development Impact The project has several developmental benefits. First, by establishing Angola's third insurer and the county’s first private insurer, the project would signal that the country's insurance sector is poised to contribute to the deepening and diversification of Angola's financial sector on a sustainable basis. Greater market penetration for insurance products would help develop existing savings mechanisms in Angola and establish stronger financial institutions. Second, by helping build a strong market-driven insurance player in Angola, the project would have a demonstration effect in terms of liberalization, product diversification and best practice corporate governance. Third, by facilitating the participation of a reputable technical partner in the creation of Nossa Seguros, the project would ensure the strength of the new company’s operations, management and information systems and support its growth plans. Fourth, by leading the way, the proposed project may encourage other long-term investors to come to Angola and consider the country as an attractive investment destination. Fifth, by establishing an efficient joint-venture insurance company it would reduce capital flight from Angola and instead expand the level of domestic investments. IFC’s Role IFC has a number of important roles in this project. First, it will facilitate and be a catalyst for the introduction of a reputable technical partner. IFC’s presence will also help to alleviate any undue pressure to grant share holdings to politically connected groups or individuals. Second, it would support the creation of the first privately-owned insurance company in Angola and, therefore, offer a service-oriented alternative to state-owned insurance companies with a modern business model. Third, it would help sustain market confidence in NOSSA Seguros in particular and in Angola's financial sector in general, at a time when the sector is in transition. Fourth, it would assist and influence in the improvement of insurance supervision/regulation and in the adoption of international best practices in particular in the area of corporate governance. IFC will explore areas of opportunity for technical assistance.

This is a Category C project according to IFC''s environmental and social review procedure. No further environmental review is therefore required.
Location of environmental documents in locally affected community