Luanda:Angolan commercial bank managers have identified key challenges in strengthening financing for the real economy and the private sector. They emphasized that liquidity management, along with the organization and certification of companies' financial data, are crucial issues that need addressing.
According to Angola Press News Agency, the discussions took place during the 1st Financial Mathematics Forum (MFX) in Luanda, where legal certainty and financial literacy were also noted as significant obstacles in granting credit to the private sector.
During the forum, Patrício Vilar, Chairman of the Board of Directors of Banco Caixa Geral Angola, highlighted the importance of banks' roles in financing both the economy and families. He pointed out the necessity for companies to provide accurate and credible information, certified by independent entities, to facilitate investment based on project merit rather than collateral.
Vilar also underscored the need for improved speed and legal certainty in the recovery of defaulted loans. Ricardo Matias, president of the Executive Committee of Access Bank Angola, stressed the need to build a trust-based ecosystem within the banking sector and advocated for the expansion of new financing products, such as housing loans.
The forum also addressed the impact of the State's financing needs on the ability to grant credit to the private sector. Elvino Lumba from the African Bank of Oman called for streamlined processes and enhanced financial literacy among managers and entrepreneurs. Lumba proposed the creation of integrated data platforms to validate company documentation efficiently and securely.
Diakeza Camos from Standard Bank Angola discussed the challenges posed by the informal economy and the need for a multi-sectoral plan to integrate informal agents into the financial system. This plan would focus on financial education, identification of economic agents, and regulatory adjustments to reflect market realities.
The panel, attended by experts from the financial sector, academics, and business leaders, unanimously agreed on the urgent need for structural reforms to enhance lending capacity and support sustainable economic growth in Angola.
