Tertiary sector records higher number of bankruptcies in Angola

25 November 2016

The largest amount of bankruptcies in Angola since the crisis began in 2014 occurred in the services sector, said chairman of the Institute to Support Small and Medium Enterprises (INAPEM), António de Assis, told state newspaper Jornal de Angola.

De Assis told the newspaper the Ministry of Economy, which created a department to deal with this issue, had ordered a survey of the number of unproductive and operating companies to determine how many are still in operation, just have facilities or are in liquidation.

The chairman of INAPEM said that the greatest difficulty entrepreneurs are facing is related to strategic choice, “there are many who start a business without having objective ideas, creating small scale business services – such as beauty salons, tobacco shops and small shops – only for the purpose of securing bank loans.”

De Assis noted that these companies cannot benefit from the Angola Investe programme and also cannot rely on financing from commercial banks as their projects lack credibility, “which worsens survival expectations in this sector.”

António de Assis said he believed that entrepreneurs should start their businesses with the little they have or partner with others to start a process in which INAPEM plays a “key role” as an entity responsible for the certification of companies with access to institutional financing programmes.

The Institute to Support Small and Medium Enterprises has registered more than 7,000 certified companies across the country. (macauhub)