Almost 800 projects worth 660 billion kwanzas approved in Prodesi

According to the balance for the three years of PRODESI (acronym for the Program to Support Production, Diversification of Exports and Substitution of Imports), 795 projects worth 660 billion kwanzas have been approved so far, under the various lines of credit that allow the operationalization of this program, with 1431 projects having been submitted to the banks, which means an approval rate of 55 percent.

Ninety-five projects are still under negotiation.

In the first six months of this year, 140 projects were approved in a total of 239, worth 183 billion kwanzas.

The approved projects generated more than 60,000 jobs and represented a turnover of 538 billion kwanzas.

"We understand that we can do better," João Nkosi, the national director for Economy, Competitiveness and Innovation at the Ministry of Economy and Planning, told reporters that the program had accelerated.

"In 2019, we had less than 40 projects approved, today we have more than 700, thanks to the strategy followed by the Government, which allowed us to register over 13,000 producers - when PRODESI's target foresaw 10,000 by the end of the year - as well as another 250 cooperatives to receive financing under the economic relief measures and 195 trade and distribution operators with financing for the purchase of production", he stressed.

The official listed some measures that have been adopted to improve PRODESI's performance, including the creation of credit support services to help confirm the processes of entrepreneurs and producers applying for financing, which helped to reduce the failure rate in the approval of projects.

For the second half, he continued, the objective is to maintain this dynamic: "We understand that there are constraints, which is why we are working with our partners to improve the business environment".

João Nkosi recognized that it is necessary to "improve the business environment" and "not complicate life for entrepreneurs", simplifying processes and lightening the bureaucratic burden, as well as solving the problems of infrastructure, particularly roads.

"The problems have been identified, we need to not waste time and go on the attack," he said, stressing that drainage problems have to be solved, with road rehabilitation.

Regarding the recent increase in the BNA's key rate from 15.5 to 20 percent, he recalled that the Angolan central bank also issued recommendations contained in Notice no. 10, which was extended until December, and which maintains an interest rate of 7.5 percent for projects involving the 17 products with the potential to contribute more quickly to the coverage of internal consumption needs.

"From our point of view, it is a stimulus to the economy, especially for entrepreneurs who are going to resort to commercial banks, which also have project financing objectives. For entrepreneurs, this is good news, otherwise it can be complicated, but within the scope of the warning 10, the demand is huge," said the same person in charge.

PRODESI has the following instruments as financing lines: resources remaining from bilateral credit lines, initially established to meet the Public Investment Program, resources from Foreign Direct Investment, private equity funds from the Sovereign Fund of Angola, other resources available domestic and foreign financial markets, such as private equity funds, financing guaranteed to generate carbon credits, etc.