Luanda – Economic Commission of the Cabinet Council approved Thursday the operational framework for the financing of sustainable projects – a document that sets out the guidelines of the Angolan State in the international debt market.
Angola gains access, with this operational framework, to a set of investment funds tending to be concessional from international financial institutions that are increasingly showing an “appetite” to finance projects as part of the Sustainable Development Goals
(SDGs).
The minister of Finance Vera Daves said that this is a demanding process, but with the “merit” of long-term financing, over 15 years and with interest rates below 3%.
Speaking to the press at the end of the 2nd Ordinary Session of the Economic Commission of the Cabinet Council, chaired by the president João Lourenço, the minister said that this is a set of resources that Angola has not had access to, due to the lack of an operational framework for sustainable financing, now approved.
However, the funds mobilised by Angola via sustainable financing instruments are secured, and they are effectively channeled to eligible projects and expenses, allowing the Debt Strategy to be aligned with the country’s environmental and social policies.
Vera Daves said that Angola has so far resorted to internationally domestic treasury financing and project financing, in general, without the specific focus of the type of projects that are supported by multilateral and bilateral financial institutions.
Under the coordination of the minister of State for Economic Coordination, the Ministries of Finance, Economy and Planning and other Ministerial Departments, will identify potentially legible projects to receive sustainable financing, but based on legitimacy criteria and with indicators of social and environmental impact.
“The funders ask that criteria be met at the beginning and also request follow-up information throughout the process and impact reports, also throughout the process and at the conclusion of the project”, the minister of Finance has stated.
Among the various structuring projects, the minister referred to those linked to energy and water, education, health, waste management and all those that can contribute to the protection of the environment and social impact on communities.
Source: Angola Press News Agency