Executive “injects” 153 billion for food production

Finance Ministry announced Monday it has recently made available 153 billion kwanzas for funding the production of food and animal protein, as part of the implementation of the Executive’s Economic Agenda – measures to stimulate the economy and boosting its potential.

In its press note, Ministry of Finance states that a public guarantee was issued for the financing of the 2024 agricultural campaign.

The financier – Angolan Investment Bank (BAI) contributed with the amount of Kz 43 billion, with a maturity of 12 months at an interest rate of 7% per annum.

As part of this process, financial institutions were recapitalised, such as the Credit Guarantee Fund (FGC) with the amount of Kz 50 billion, Development Bank of Angola (BDA) Kz 20 billion, Angolan Fund of Venture Capital (FACRA) Kz 5 billion and the same amount for FADA – Agrarian Development Support Fund.

Also according to Ministry of Finance, a budget allocation of Kz 30 billion was made to the Ministry of Agriculture for the acquisition of agricultural inputs to support family farming.

The Ministry of Finance clarifies that the said capitalisations implement the financial support measure for the business sector with a focus on small and medium-sized companies.

The move is meant to speed up and facilitate access to financial resources by private operators with initiatives leading to national economic diversification and strengthening of the country’s food security.

The source said the provision of the financing line contracted to BAI aims to promote the development of national agricultural production, as well as to boost large, medium and small commercial producers.

As for financial resources made available to the BDA, the institution justifies that this reflects the reaffirmation of the Executive’s focus on refocusing the aforementioned bank on the exercise of its function of supporting the promotion of diversification in sectors with high potential to generate dividends on economic growth, creation of jobs and the resilience of the national economy.

At the same time, it ensure the strengthening of national food security, through the operational of Planapesca, Planapecuária and support for initiatives within the scope of agricultural development.

For the financial resources granted to FACRA, Finance clarifies that it aims to support initiatives in the field of food security, through the development of logistical chains to facilitate storage, primary processing, conservation and the disposal of agricultural production centers.

Thus opening up, via the FACRA line of financing for private projects for the implementation of small industries (equipment) for the improvement of cereals, grains, coffee and cotton in production zones.

Meanwhile, the financial resources made available to FADA aim to support the Community Funds of agricultural cooperatives, which will be operated and made available by FADA under subsidised conditions, namely, at a maximum interest rate of 7% per year

Source: Angola Press News Agency (APNA)