According to a press release from the Ministry of Finance, to finance the 2024 agricultural campaign, a public guarantee was issued in the amount of 43 billion kwanzas, with a maturity of 12 months and an interest rate of 7 percent per year, financed by Banco Angolano de Investimentos (BAI).
For the same purpose, some financial institutions were capitalized, namely the Credit Guarantee Fund (FGC) with 50 billion kwanzas, the Development Bank of Angola (BDA), with 20 billion kwanzas, the Fundo Angolano de Capital de Risco (FACRA), with five billion kwanzas and the Agrarian Development Support Fund (FADA), with five billion kwanzas.
The Ministry of Agriculture and Forestry was allocated a budget of 30 billion kwanzas to purchase agricultural inputs to support family farming.
"The Ministry of Finance clarifies that the aforementioned capitalizations implement the financial support measure for the business sector, with a focus on small and medium-sized companies, in order to speed up and facilitate access to financial resources by private operators with initiatives leading to diversification national economy and the reinforcement of the country's food security", refers in the communiqué.
The document stresses that the provision of the financing line contracted from BAI aims to promote the development of national agricultural production, as well as to boost large, medium and small commercial producers.
While the financial resources made available to the BDA "translate the reaffirmation of the executive's focus on refocusing the aforementioned bank on the exercise of its function of supporting the promotion of diversification in sectors with high potential to generate dividends for economic growth, job creation and resilience of the national economy, concomitantly ensuring the strengthening of national food security, through the operationalization of Planapesca, Planapecuária and the support to initiatives in the field of agricultural development".
The financial resources made available to FACRA aim to support initiatives in the field of food security, through the development of logistic chains to facilitate storage, primary processing, conservation and the outflow of agricultural production centers.
In turn, the financial resources made available to FADA aim to support the Community Funds of agricultural cooperatives, which will be operated and made available by FADA under subsidized conditions, namely at a maximum interest rate of 7 percent per annum.