Angola: Government approves credit line for agriculture

30 January 2009

Luanda, Angola, 30 Jan – The Angolan government Wednesday approved a credit line for agriculture of US$350 million, in order to fund small and medium-sized producers, as well as agri-livestock associations and cooperatives.

The minister for Agriculture, Pedro Canga, said that loans were being granted to be used for current expenditure and investments, to acquire equipment, with a view to increasing productivity and commercial production in the country.

The credit line aims to be an instrument to promote and expand the national market for agricultural products, improving existing production and crop systems, in order to ensure greater productivity and income for farmers.

Pedro Canga noted that the credit line would be operated by Banco de Desenvolvimento de Angola (BDA) and retail banks, with repayments made according to sales of production.

According to the Agriculture Minister, approval of the credit line came on verifying that there were still many obstacles to acquiring means of agricultural production and access to credit.

Asked about biofuel production in the country, the minister noted that there were currently private investment projects underway, but said that this activity would require specific legislation to be set up.

“There are private projects for biofuel production in Angola, but there has to be specific legislation. We are working for that to be approved,” said Canga.

The minister noted that there were principles that needed to be observed in biofuel production, citing, as an example, the fact that it should not compete with food production and environmental conservation. (macauhub)