Luanda — Angolan private sector bank credit represents only 14 percent of GDP (USD 102 billion - data for 2017), a figure that is much lower than other realities, said the minister of State for Economic and Social Development.
Manuel Nunes Júnior, speaking at the Conference on Private Sector Financing, called for support for commercial banks so that credit for the economy could increase so that the country could enter a path of rapid economic growth, increasing national production, employment and income for Angolans.
By way of comparison, the minister pointed to countries such as Brazil, South Africa and Morocco, where the weight of credit to the economy in the GDP reaches values over 50%.
Given the low credit value of GDP, the minister said that there is still a lot of room for growth of bank financing to the country's economy.
The National Reserve Bank of Angola conducted a study in which it identified the main constraints for the granting of credit by commercial banks to the private sector, both on the demand side and on the supply side.
This study points out that on the demand side, for borrowers, the main constraints are the high interest rates and the guarantees required by the banks.
On the supply side that is on the commercial banks side the main constraints are the lack of organized accounting in companies and the low level of financial literacy.
According to the Minister of State, such constraints can and will have to be "removed" so that credit can flow into the economy, with the state having an important role to play.
Manuel Nunes Júnior once again pointed out that the Angolan economy is dependent on oil and needs to be diversified.
He said that with this meeting the Government wants to build an economy based on a strong and sustained growth, which will end up dependence on a single product that guarantees about 95% of the country's external resources and about 70% of all Angola's tax revenue.
Experiences on bad credit management, financing to the private sector in Angola - Constraints and solutions, financing to agriculture and agro-industry, are included in the themes under analysis at the first conference on private sector financing promoted by the National Bank of Angola.