Angolan minister optimistic about agricultural campaign credit

3 June 2011

Luanda, Angola, 3 June – Angola’s Economy minister, Abraão Gourgel, said he was optimistic about the successful execution of agricultural campaign credit, which was officially launched Thursday in Luanda, as it improved access to financing by small and medium-sized Angolan agri-livestock producers.

The minister, who was speaking at a meeting on agricultural investment credit and business opportunities promoted by Angolan bank Banco de Desenvolvimento de Angola (BDA), as the project’s financier, said that the results of the process were expected to be satisfactory, similarly to agricultural campaign credit.

According to Gourgel, the success of agricultural campaign credit, which has so far benefitted over 20,000 rural workers in several provinces, was due to the efforts of four banks involved in the project (Banco de Poupança e Crédito, BAI Banco de Micro Finanças, Banco SOL and Banco de Comércio e Indústria) and of the agricultural credit Technical Supervision Commission.

The minister said the government aimed, by providing agricultural investment credit, to promote modern commercial agriculture, that is competitive and prosperous and capable of providing an income based on high quality products, as well as contributing to the strengthening of the national agricultural sector.

As with agricultural campaign credit, agricultural investment credit will be provided directly by Banco de Desenvolvimento de Angola (BDA) and by the aforementioned retail banks that are taking part in the venture. The interest rate charge is 6.7 percent per year, with non-payment periods of up to three years and maturity of up to eight years.

The costs of subsidising the credit will be borne by the National Development Fund (FND) and managed by the BDA.

Both campaign credit (US$150 million available) and investment credit (US$200 million), were approved by the Angolan government on 14 April, 2010. (macauhub)