The government of Angola has decided to increase the interest rate subsidy for beneficiaries of the Agricultural Credit Campaign, which will now pay a rate of 2 percent compared to 5 percent previously, the minister for the Economy, Abraão Gourgel said Monday in Luanda.
The minister said the purpose of the measure is to promote creation of mechanisms and instruments to foster agricultural credit that will ensure it is attractive to beneficiaries and for banks and is aimed at all levels of the value chain.
The set of initiatives designed to promote credit in the agricultural sector, he said, includes a boost to agricultural insurance to complement the credit, as it helps to mitigate the risks of the harvest for the sector’s businesses.
The credit incentive programme also provides for micro insurance, which will protect risk associated to low-income or micro entrepreneurs, including in rural areas. (macauhub/AO)