Based on above case, I have following questions:   1. What…

PresidentMusic9806   Based on above case, I have following questions:   1. What…Image transcription textPRIVATE EQUITY IN ANGOLA’ Denise Dunlap and David Wesleywrote this case study solely to provide material for classdiscussion. The authors do not intend to Mustrafe eith… Show more… Show moreImage transcription textPage 2 9815M105 Despite being exhausted from their seeminglyendless back-to-back meetings, the FIPA team appearedenergetic as they presented the business case for inve… Show more… Show moreImage transcription textPage 3 9815M105 Since BPP had sponsored Laranjeiro’s MBA, hewas required to work for the bank for at least another two years.By coincidence, in 2006, as he neared the end of those … Show more… Show moreImage transcription textPage 4 9815M105 The bank served a variety of customersegments, including low-income Angolans, and thus had a well-developed branch network throughout Angola. BAI’s s… Show more… Show moreImage transcription textPage 5 9815M105 MPLA was supported by the Soviet Union.After the Portuguese left, Cuba became one of MPLA’s strongestallies, with as many as 25,000 Cuban troops deployed … Show more… Show moreImage transcription textPage 6 9815M105 One potential remedy was to reduce thecountry’s singular dependence on oil by investing in other sectorsof the economy. Following the war, Angola quickly rec… Show more… Show moreImage transcription textPage 7 9815M105 industry sector. This policy created challengesin countries such as Angola that relied heavily on the petroleumindustry. In such cases, private equity targets were typ… Show more… Show moreImage transcription textPage 8 9815M105 KEY ANGOLAN ECONOMIC SECTORS Oiland Gas Exploration and Production Angola possessed proven oilreserves of more than 11 billion barrels of crude oil. T… Show more… Show moreImage transcription textPage 9 9815M105 year and loans to non-prime customers wererare. Lending rates ranged from 8 per cent to 13 per cent, andsavings deposits yielded approximately 2 per cent per … Show more… Show moreImage transcription textPage 10 9815M105 The EIB Assessment Team On October 5,2008, an EIB assessment team finally arrived in Luanda led byCyrille Amould. Of the four team members, only one h… Show more… Show moreImage transcription textPage 11 9815M105 EXHIBIT 1: REPUBLIC OF ANGOLA KEYFACTS Geography Area: 1,246,700 sq. km. (481,400 sq. mi.),about twice the size of Texas. Cities: Capital – Luanda (… Show more… Show moreImage transcription textPage 12 9815M105 EXHIBIT 2: NORFUND’S SUMMARY OFINVESTMENT GUIDELINES The General Partner will charge amanagement fee of 3.0% per annum of Total Commitm… Show more… Show moreImage transcription textPage 13 9815M105 EXHIBIT 3: NORFUND’S INVESTMENTPROCESS You, subject to conditions Intial Screening Detailed ExitInvestment for Investment Strategy & Deal Origi… Show more… Show moreImage transcription textPage 14 9815M105 EXHIBIT 4: FINANCIAL FLOWS TOANGOLA’S INFRASTRUCTURE, 2007-2008 (in US$ million peryear) Operations and Capital Expenditures Maintenan… Show more… Show moreImage transcription textPage 15 9815M105 EXHIBIT 5: ANGOLAN TAX ENVIRONMENTThe taxable year is the calendar year. Corporate Tax % NotesCorporate Income Tax Rate 35 Income from certain ac… Show more… Show moreImage transcription textPage 16 9815M105 EXHIBIT 6: EUROPEAN INVESTMENTBANK’S SITE VISITS IN ANGOLA, OCTOBER 2008 NIDCSupermarket in Luanda Luanda, Angola Water-Bottlin… Show more… Show more Based on above case, I have following questions: 1. What opportunities are presented by Angola’s economic and political position?2. What are the risks of investing in Angola?3. Given the country’s high level of perceived corruption, how can management planaround bribery and corruption?4. What insights does the case offer on Angola’s economic complexity?5. What do you understand by the economic term “resource curse”?6. What do you understand by the economic term “Dutch disease”?7. Drawing in Pankaj Ghemawatt’s CAGE framework, is Angola “close” or “far” from theEIB?8. Should the EIB take the risk? What are the pros and cons of the case for investing inAngola?  BusinessBusiness – Other