Luanda — Angola's National Bank (BNA) updated the legislation on the granting of subsidised credit to the real economy, by directing commercial banks to increase the minimum amount that must be granted by the end of 2020, that is, 2% of their net assets to 2.5%, to accelerate the diversification of domestic production.
Based on BNA Notice 10/2020, the subsidised financing, under the Production Support, Export Diversification and Import Replacement Programme (PRODESI, cover 17 new goods that can produced in the country.
According to the BNA, the diversification of the economy is crucial to reduce the country's excessive dependence on imports of goods and services, as well as to increase sources of revenue in foreign currency and, thus, ensure the sustainability of its external accounts.
Recent developments in the world economy, specifically the significant drop in oil prices and the Covid-19 pandemic, only reinforce the importance and urgency of achieving the goal of self-sufficiency in domestic production of goods and services.
In this way, the BNA guides banks to prioritise and encourage the granting of credit to cooperatives and small and medium-sized companies, setting the minimum number of credits that must be contracted with these entities later this year 2020, defined according to the value of the net assets each bank.
The notice requires the publication by each bank, on its institutional website, of the total accumulated amount of credit granted to the economy under Notices no. 4/2019, no. 7/2019 and no. 10/2020, updated on the last day of July, October and January of each year.
The update embodied in Notice no. 10/2020, of April 3, reflects the evaluation of the results achieved with the implementation of Notices no. 4/2019, of April 3 and no. 7/2019, of July 7 October, as well as the need to accelerate the pace of the economy's diversification process, and it is estimated that more than 500 new small and medium-sized enterprises projects can be financed over the financial year 2020 under more favorable conditions.
Under PRODESI, the Government selected 54 products that the country must produce and achieve self-sufficiency in the medium and long terms.
They include rice, hygiene articles, poultry, cattle farming, goat breeding, pig breeding and derivatives, drinks, including juices , sugar cane and its derivatives, cement, clinker, coffee culture and its derivatives, packaging, beans and its derivatives, tropical fruit, vegetables, milk and its derivatives, wood and its derivatives, honey.
The list covers corn and its derivatives, cooking oil, palm oil, commercial fishing, aquaculture and all activities related to the fishing industry, soap and detergents, common salt, soy, paint for construction, tubers and their derivatives, steel rod building, glass.