Angola to support Guinea-Bissau state budget and launch US$10 million credit line

11 October 2007

Lisbon, Portugal, 11 Oct – Angola plans to support the Guinea-Bissau state budget and finance a credit line worth around US$10 million, for business and investment between the two countries, the Guinean finance minister said in Bissau Wednesday.

Speaking on the telephone to Portuguese news agency Lusa, Issufo Sanhá said that, together with the promotion of large Angolan investments in Guinea Bissau, the indirect budgetary support and the credit line are the “three pillars” of an economic cooperation agreement, as part of a general cooperation agreement to be signed Thursday between the governments, during a visit to Guinea Bissau by Angolan prime minister, Fernando Piedade dos Santos “Nandó”.

Under the terms of the agreement, Angola will provide Guinea Bissau with fuel at a “preferential price,” similarly to what occurs in the domestic market, this making Guinea Bissau and “extension of the Angolan market,” the Guinean minister said.

The fuel purchased will then be sold on to fuel distribution companies, and the margin charged by the authorities would be “a gain for the budget.”

The credit line of up to US$10 million will be available to small and medium-sized companies in the two countries.

The fund will focus on projects involving traditional Guinean products such s cashew and palm oil.

The agreement will also cover the promotion of “large investments,” particularly in the areas of mineral resources and infrastructure.

With these agreements, the Guinean government plans to “make Angola one of the main investors,” in the country, together with Portugal, South Africa and Brazil.

The cooperation agreement began to be prepared in July, with the signing of a memorandum of understanding between the finance ministries of both countries, in Luanda. (macauhub)