Angola: Credit to Non-Financial Sector Grows 28.6 Percent

22 June 2024
Angola Press Agency (Luanda)

Luanda — Gross credit to the non-financial sector in May totalled 6.7 trillion kwanzas, an increase of around Kz 1.5 trillion (28.6%) compared to the same period in 2023.

Of the total loan, 89.4 per cent represented private sector indebtedness (private companies and individuals) and 10.6 per cent public sector indebtedness (public administration and public companies), according to a statement from the National Bank of Angola (BNA).

Also in the period under review, the Central Bank said that the stock of credit to the economy totalled 4.8 trillion kwanzas, an increase of Kz 256.8 billion in the first five months of this year.

According to the source, non-financial public sector indebtedness totalled 704.6 billion kwanzas, of which 53.4% related to public administration and 46.6% to public companies. Compared to the same period last year, there was an increase of Kz 207.3 billion (41.7 per cent).

In turn, the indebtedness of the private sector (private companies and individuals) rose by 1.37 trillion kwanzas (27.19%), from 4.68 trillion kwanzas in May 2023 to 5.95 trillion kwanzas in May 2024.

The indebtedness of non-financial private companies totalled 4.55 trillion kwanzas, an increase of 854.62 billion kwanzas (23.12%), and the indebtedness of private individuals totalled 1.40 trillion kwanzas, an increase of 417.69 billion kwanzas (42.49%).

The data also show that gross credit directed to the Real Sector of the Economy totalled 1.30 trillion kwanzas, an increase of 41.20 billion kwanzas (3.27%) compared to the corresponding period of the previous year.

This growth was mainly driven by the significant increase in the extractive industries sub-sector, which saw an increase in resources of around 97.52 billion kwanzas (38.47 per cent).

In terms of subsectors of economic activity, the total credit granted to the Real Sector was mainly in the manufacturing subsector, with 648.09 billion kwanzas (49.79%), of which 608.47 billion kwanzas (93.89%) corresponded to credit under Notice 10.

Also included were the extractive industries sub-sector, with 351.03 billion kwanzas (26.97%), of which 201.87 billion kwanzas (57.51%) was granted under the Notices on the granting of credit to the Real Sector and the Agriculture, Animal Production, Hunting, Forestry and Fishing sub-sector, with 302.62 billion kwanzas (23.25%), of which 290.89 billion kwanzas (96.12%) was granted under the BNA Notices on the promotion of credit to the Real Sector.

The BNA says that total credit granted under BNA Notice 10/2022 for the promotion of the Real Sector totalled 1.10 trillion kwanzas, representing 84.60% of total credit granted to this sector and 16.90% of the banking system's gross credit portfolio.

According to the Central Bank, compared to the same period last year, there was a significant increase of 223.13 billion kwanzas (25.41 per cent), driven mainly by the financing of projects in the manufacturing sub-sector, which saw an increase of 100.14 billion kwanzas (19.70 per cent).

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