Companies from Brazil plan to start taking advantage of credit line to Angola

14 September 2018

A syndicate of Brazilian private banks is due to release the first tranche of a US$2 billion credit facility opened by Brazil in favour of Angola within three months, the Brazilian ambassador to Angola said in Luanda.

Ambassador Paulino Franco de Carvalho Neto also told state newspaper Jornal de Angola that the vehicle for the disbursements may be ten Brazilian companies that have expressed an interest in investing in agribusiness, infrastructure and health services sectors.

The financing, he recalled, results from the memorandum of understanding on credit and export guarantees signed in February in Luanda by Angolan Finance Minister Archer Mangueira and Brazilian Foreign Minister Aloysio Nunes.

Under the terms of the agreement, Brazil undertakes to provide Angola with goods and services worth US$2 billion, with credit insurance coverage from the Export Guarantee Fund.

The diplomat stressed that this financing differs from the previous one provided by state-owned National Bank of Economic and Social Development (BNDES), and is now guaranteed by Brazilian private banks that have made themselves available to finance the Angolan economy through the country’s companies.

Carvalho Neto also told the newspaper that the idea behind the credit line is to motivate Brazilian companies to set up industrial units in Angola, mainly in the agro-business sector, in order to help solve the difficulty of obtaining foreign currency.

The statements of the Brazilian ambassador to Angola were delivered on the sidelines of the economic forum on “Development of Agro-business, Challenges and Perspectives,” hosted by the Association of Brazilian Businesspeople and Executives in Angola (Aebran). (macauhub)