Angolan government fashions agribusiness firms with US$25.8m financing

ANGOLA – Three Angolan agribusiness firms have received financing totaling Akz 15.4 billion (US$25.8m) from the government initiative, Programme for Support to National Production, Diversification of Exports and Import Substitution (PRODESI).

In the context of the economic diversification process, the Economic Commission of the Cabinet Council of Angola approved the PRODESI plan, a document which identifies projects and activities aimed at ensuring the achievement of the objectives and goals expressed in the National Development Plan (PND) for the 2018/2022 period.

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PRODESI is one of the 83 programmes of the PDN to be implemented by the government in partnership with the private sector and research institutions.

It aims to increase production of 54 domestic products prioritized by the government, mainly of the staple food and others deemed essentials and reduce imports, reports Angola Press.

The three companies which have received the funding include Valagro S.A, that undertakes bovine farming and trading of meat. The firm received Akz 250 million (US$419,000) from Banco Económico.

The second company is Noviagros – Exploração e Comércio Agricola Limitada, focused on corn and soybean production which has received Akz 11 billion (US$18.44m) from Standard Bank.

The third approved project under the government programme is Agri-Mumba Gestão P.E Industrial Limitada, carrying out livestock production receiving Akz 4.1 billion (US$6.8m) from Bank BIC.

In 2019 the government created the Credit Support Programme (PAC), operated by 9 commercial banks to ensure access to credit to the producers.

Approved by presidential decree, the interest rate estimated for PAC does not exceed 7.5 percent and the borrower must reimburse over half of the amount after the maturation period.

PAC does not establish limit to financing for each project, it depends on the specificity of every single investment, but the entrepreneur must bear 25 percent of the value to be invested.

Over 15,000 national producers have so far signed up for PRODESI, through the portal created for this purpose.

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