Government releases funds for PRODESI

Luanda – At least 13 billion kwanzas will be made available this year by the Angolan Government for the Programme to Support Production, Diversification of Exportations and Importations Substitutions (PRODESI), announced last Friday in Luanda the secretary of State for Economy, Sergio dos Santos.

In the context of the economic diversification process, the Economic Commission of the Cabinet Council 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.

PRODESI is one of the 83 programmes of the PDN to be implemented in partnership among the State, businesspeople and university centres of scientific research, according to the official.

Speaking to journalists on the sidelines of the meeting of the Economic Commission of the Cabinet Council, chaired by the President of the Republic, JoAPound o Lourenco, the secretary of State for Economy said that the state, entrepreneurs and university centres of scientific research will be the executors of the project.

Sergio Santos said also that the tasks to be carried out have to do with the need to organize PRODESI’s technical unit of implementation.

He explained that PRODESI will be the executive structure to materialise the partnership, creating work teams that will begin to execute a set of projects, in areas such as support to the production process, developing several infrastructures, fundamentally linked to agribusiness, food production, mineral resources, tourism and leisure.

The improvement of the business environment and the transversal conditions, so that it is possible to do business in Angola, as well as others linked to the acceleration of the expected results of PRODESI, are included in the objectives.

The state secretary also highlighted the projects related to attracting foreign direct investment, facilitating access to credit for entrepreneurs and infrastructure in the framework of public-private partnerships.

Angola Investe programme substituted

The Angola Investe programme, which aims to facilitate credit, will be replaced by a new programme that fits the context of financial resources constraints.

The new programme is expected to be announced in December this year or in the first quarter of 2019, said Secretary of State Sergio dos Santos, who attended the session of the Economic Commission of the Council of Ministers.

Sergio dos Santos explained that the programme will concentrate resources available to finance the economy and to close the insufficiencies of Angola Investe, which have been accentuated in a scenario where resources are scarce, tied to issues related to the State’s institutional capacity to monitor projects of the entrepreneurs and of access to credit for those who are far from the centres of the cities.

The Secretary of State for Economy said that the process of replacing the Angola Investe programme will begin shortly with the collection of opinions from businesspeople in relation to the difficulties of access to credit and the commercial banks on issues relating to the constraints in granting credit.

“We’ll soon have new financial products, more adjusted to the current reality, all this to finance the initiatives planned under PRODESI,” he said.

The Angola Investe programme received 515 financing. To this end, the banks made available a total of 120 billion Kwanzas.

The state, in order to support these projects, had expenditures in the order of 50 billion Kwanzas to subsidize interest, to capitalize the credit guarantee fund and the active venture capital fund.

The next step, according to the secretary, will be the analysis of overdue debt, especially interest subsidies, guaranteeing their payment and complying with the debt financial plans that, according to the studies, will have disbursements until 2024, if the programme is now discontinued.

INAPEM strengthened

Within the framework of PRODESI’s philosophy and the programme that will replace Angola Investe, the Institute of Business Development (IFE) will be absorbed by the National Institute for Support to Small and Medium Enterprises (INAPEM), a subject also discussed at the meeting.

The new organic statute of INAPEM should be approved in the coming days, including the board of directors. The goal is to have a strong and effective positioning of small and medium-sized companies, concluded Sergio dos Santos.

Source: Angola Press News Agency