Financing under the Angola Investe programme below forecast for 2013

30 December 2013

Instruments and financial support for entrepreneurs under the Angola Investe programme have been below initial plans for 2013, Economy Minister Abraão Gourgel said last week in Luanda.

Cited by the Angolan newspaper Expansão, the minister said that over the course of 2013 Angola Investe financing initiatives had functioned with a budget corresponding to just 33 percent of what was originally forecast, “taking place in an adverse climate of stagnating credit for the productive sector”.

The amount provided by the Credit Guarantee Fund, which should have been US$230 million, was in turn cut by nearly US$80 million. Under that fund only US$50 million have been made available by the Finance Ministry.

Gourgel explained that 94 loan guarantees had been granted by 11 banks, totalling 9.793 billion kwanzas, corresponding to financing of US$156.7 million. Nine banks are currently analysing various processes.

Another structure set up to support business, the Public Risk Capital Fund, was conceived to be financed with US$250 million. However, the 2013 state budget only earmarked US$100 million, of which only US$70 million has been made available to date, he said.

Despite the cuts, Gourgel said he was satisfied by some Angola Investe figures in 2013, adding “the interest subsidy initiative is already the biggest credit support programme launched by the government”. (macauhub)