Africa-Press – Angola. A Financing Agreement for the Project to Accelerate Economic Diversification and Job Creation, estimated at US$300 million (equivalent to more than kz 237 billion) was initialed, this Monday, in Luanda, between the Government of Angola and the World Bank (WB).
The document was signed by the Minister of Finance, Vera Daves de Sousa, and by the WB regional director for Angola, Democratic Republic of Congo and São Tomé, Albert Zeufack, in the presence of the Ministers of Economy and Planning, Mário Caetano João, of Transport, Ricardo D’Abreu, and the WB vice-president for Africa, Victoria Kwakwa.
Speaking at the ceremony, the vice-president for Eastern and Southern Africa at the WB for Africa, Victoria Kwakwa, underlined that the project is expected to benefit 12,000 companies to improve the business environment.
“It is expected that the project will allow private investment of US$400 million in non-oil sectors, contributing to the creation of direct and indirect jobs. This is a testament to the strength of the partnership between the Government of Angola and the World Bank”, he emphasized.
Victoria Kwakwa explained that, to enable economic diversification, led by the private sector, the project will support the Government’s efforts to improve the regulatory and institutional environment, for trade, business entry and operations and financial services.
The aim, he said, is to catalyze public and private investment in productive infrastructure in the Lobito Corridor, through public-private partnerships and investment of US$100 million in last mile infrastructure.
The official recognized that Angola has immense potential to become an agro-industrial power and to develop technological services, which can create jobs in urban centres.
Citing data from the Enterprise Survey (REMPE), whose indicators show that more than 80 percent of companies in Angola are micro-enterprises, with less than five employees, 60 percent of which in commerce and in Luanda, he says that the change in this scenario “will only happen with a strong private sector”.
The Minister of Finance, Vera Daves, highlighted that the Government and the BM share the same vision on the main challenges that must be addressed urgently, for a more egalitarian and sustainable development of the country.
He explained that the option of betting on the private sector results from a vision of the Angolan Executive on the role that it should play, with a view to promoting economic growth and improving social indicators.
“One of the challenges is the participation of the private sector in the diversification of the economy, in activities that generate income and massive employment for the population, especially for young people”, he said.
The project will also support business capacity building and technology adoption, as well as facilitate the granting of commercial loans to Micro, Small and Medium Enterprises (MSMEs) through credit guarantees.
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