Nine commercial banks in Angola support import substitution programme

25 March 2019

Nine commercial banks will finance projects of Angolan businesspeople linked to the Credit Support Programme of up to US$434 million, announced on Friday in Luanda the Secretary of State for the Economy and Planning.

The Economic Commission of the Council of Ministers approved the Credit Support Programme (PAC), which improves access to credit for producers who want to focus on the production of 54 products, especially those included in the basic basket of goods and others that are considered essential.

The financing aims to make the Programme of National Production, Export Diversification and Export Substitution (Prodesi) a reality. Prodesi sets out measures to boost domestic production in order to ensure an increase in exports and their diversification in relation to the oil sector.

Sérgio Santos said the government would also set aside public funds to reduce interest charges and improve credit guarantees, thus reducing credit risk.

The PAC will support the economic activities of micro and small enterprises, family farming, small-scale fisheries and small processing units linked to the production of the 54 products covered, such as sugar in bulk, rice, beef, wheat flour, beans, corn flour and cassava flour, milk powder, spaghetti, soybean oil, and palm oil, according to Angolan state news agency Angop.

In terms of the financial resources available to provide bank loans under the PAC, approximately 146 billion kwanzas (equivalent to about US$434 million) was granted for credit in 2019 by nine commercial banks that agreed to enter into agreements with the government for the implementation of the PAC.

Banco Angolano de Investimentos (30 billion), BIC (30 billion), Standard Bank (20 billion), Banco Millennium Atlântico (15 billion), Banco de Negócios Internacional (6 billion), Banco Comercial do Huambo (6 billion), Banco de Investimentos Rural