Angola cuts interest rates on agricultural loans to boost investment

6 October 2014

The government of Angola has reduced interest rates for the beneficiaries of loans in the Agricultural Credit Campaign from 5 percent to 2 percent, according to a decree from the Minister of Finance, Armando Manuel.

In the document cited by news agency Lusa, the minister said the government had recognised the “need to reduce the rate of interest of the beneficiaries [of this type of loan] from 5 percent to 2 percent,” and “the difference is subsidised by the state.”

Angola’s Agricultural Credit Campaign was launched in June 2010 to “strengthen small and medium sized agro-livestock producers and the credit line to support them,” the decree said.

The Agricultural Credit Campaign is a government programme to support agriculture involving Banco de Poupança e Crédito, Banco de Comércio e Indústria, Banco SOL and Banco Africano de Investimentos, which provided initial funding of US$150 million.

The interest rate, amounts, loan and reimbursement limits for beneficiaries are set annually by the Ministry of Finance after consulting members of the Coordinating Committee for Agricultural Credit. (macauhub/AO)