Angola: Govt invests €1.5bn to improve SME access to finance
The Angolan government is supporting small to medium-sized enterprise (SME) financing in a bid to reduce the country's dependency on oil revenues and contribute to the emergence of new companies that could boost its growth.Several measures have been introduced so far.
In June 2011, the Angolan Development Bank announced it will provide SMEs with investment credits in kwanza at a preferential rate of 14 percent, Les Afriques newspaper reports.
The government has also just announced it will make $2 billion (€1.5 billion) to SMEs, Afrique 7 newspaper reports.
This financing should be distributed as investment credits at a preferential rate.
Financed by several parties including the Angolan state, the National Development Fund and Bretton Woods institutions, this programme also offers tax rebates and special support for the technology sector.
Such efforts have contributed to improving access to finance in Angola over the past few years.
According to figures published by African Economic Outlook, the standard ratio of total loans over gross domestic product - which stood at less than 10 percent in 2006 - was 43 percent in 2009. In the same year, banking credits increased by 79 percent.
However, a great deal of work still needs to be done. According to a report from the African Development Bank called ADB's Private Sector Country Profile 2009, no more than two or three percent of SMEs have access to credit, mainly because of the difficulties new companies have providing guarantees.