Poorly drafted projects delay granting of production credit in Angola

6 December 2019

Poor preparation of projects presented by some companies that contribute to the Credit Support Programme in Angola is slowing down the process of granting bank credit to develop national production and decrease the import of goods and services, the chief executive of Banco Angolano de Investment (BAI) said on Thursday in Luanda.

José Castilho, who was speaking during a meeting with businesspeople linked to the agri-livestock sector, also said that compliance requirements, organised accounts and well-drafted projects are the main reasons for the delays in granting bank credit to companies.

The CEO said that the bank’s instruments for credit analysis, the quality of the information provided in terms of financial statements, the experience of the management team, guarantees, business plan and banking and legal history, are also requirements for access to a loan.

Without mentioning the amounts involved, Castilho said the bank had received more than 30 projects under the Credit Support Programme that are being analysed for possible approval.

Castilho stressed that although the programme is focused on small and medium-sized enterprises, many of them still do not have the required level of organisation, though some are already preparing themselves better. He added that the board of the bank wants to avoid repeating the mistakes made in the implementation of the Angola Investe Programme, which had some projects that failed and led to defaults on loans.

As part of the Credit Support Programme and the commitments taken on, the BAI has an available fund of 30 billion kwanzas (US$55 million) to finance investors who want to produce the products set out in the Programme to Support Production, Diversification of Exports and Import Substitution (Prodesi). (macauhub)