Africa-Press – Angola. The Minister of Economy and Planning, Mário Caetano João, should initiate, with the Executive and commercial banks, a different approach on investments in the eastern provinces (Lunda-Norte, Lunda-Sul and Moxico), which have less utilized potential, relatively to producer initiatives.
Speaking to the press, at the end of the meeting with representatives of commercial banks operating in Lunda-Norte and with the business class, Mário Caetano João said yesterday, in Dundo, that he returned to Luanda with a commitment to, together with the Executive and the administrations commercial banking, trigger a different approach on the eastern provinces, whose potential has not been sufficiently exploited in terms of financing for local producers.
For the minister, there is a lack of sensitivity on the part of financial institutions towards the region’s economic projects, a finding that was achieved during a week-long tour of the three provinces, with the pioneering objective of launching the Informal Economy Reconversion Program ( PREI), which included the opening of a representation of the BDA (Development Bank of Angola) in Saurimo.
In Mário Caetano João’s opinion, Eastern producers need special attention for their productive and economic development.
In this context, the commercial banking representatives in Lunda-Norte justify this gap with the lack of sustainability, maturity of the projects and complete documentation of the entrepreneurs, mainly the titles of surface concession, related to agricultural and other initiatives that must be qualified for credit. .
The minister said that the problem can be solved through a combination of efforts, where provincial governments, through the Integrated Economic Development Offices, and municipal administrations can serve as facilitators of businessmen’s expedients.
Mário Caetano João noted with concern that, of the approximately one thousand projects already advanced, since the Export Diversification and Import Substitution Program (PRODESI) began in the country, the three eastern provinces presented only 60, of which only one was financed. by the bank.
The minister made it known that other provinces, especially those of the Central Plateau, are at the forefront, when it comes to funding, although the Executive’s initiative is based on “pulling” those who are behind and pushing those who are advanced.
Mário Caetano João was peremptory in qualifying his tour to the East as “positive”, although it “does not satisfy”, taking into account the situation of entrepreneurs who, “unfortunately, develop their activities with their own capital”. Producers have reached a stage where they need working capital to be able to grow at a faster
pace.It was learned that the lack of a market for the flow of goods forced many to slow down their production, a situation that worries the Ministry of Economy and Planning. The minister recalled that “the objective of PRODESI is not to slow down production, but a commitment that has to do with the increase”.
One of the solutions to improve productive activity in the provinces of the “East Corridor” is related to the regular holding of fairs, as it is a market promotion mechanism, in which producers and the government play their real role, added to This is why they are important for the emergence of new manufacturing units.
Mário Caetano João guaranteed that the ministry he heads is committed to interacting with commercial banks in Luanda, so that greater attention can be paid to economic activity in the east of the country .
In the last four years, only in the province of Moxico, local entrepreneurs have not received any kwanza from the commercial banks, for the various initiatives, and Lunda-Sul is far from expected. The minister advises that central structures should work hard to reverse the situation and reduce asymmetries.
In the East, institutions that are financially robust operate, such as the banks Fomento Angola (BFA) and Angolano de Investimento (BAI), which may well be an example in granting credit and encouraging other financial institutions to bet on local economic agents.
According to the minister, the average of those registered and who are negotiating with the bank, for access to financing, is around ten proposals, in each of the three provinces, with a bias towards agribusiness, commerce, distribution and manufacturing industry.
Challenges
In Lunda-Norte, the lack of capacity of producers to create a “dossier” for access to credit, the insensitivity of the banks in guaranteeing financing and the absence of legal guarantees, especially the absence of titling of productive properties, were identified as structural failures, meeting with commercial banks and businessmen, which was also attended by the governor of Lunda-Norte, Ernesto Muangala, Mário Caetano João mentioned that some of the existing obstacles can be unblocked with interventions by the local authorities.
The minister set the month of July as a deadline for the necessary changes in the paradigm of commercial banks’ activities, taking into account that the lack of financing has a negative impact on the economic, productive and human development of the three provinces of eastern Angola.
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