Induve records 20 percent drop in production

Luanda – The Angolan Vegetable Oil Industry (Induve) recorded in 2019 a drop of 20 percent in its production of corn flour and animal feed, when processing only 60.000 tons, motivated by the non-timely availability of foreign exchange for import of the raw material.

On average, this plant, located in the Industrial zone of Mulemba, in the municipality of Cacuaco, in Luanda, annually processes 80.000 tons of corn flour and animal feed.

In order to import raw materials, the company needs to open letters of credit, but even so, the availability of the value in kwanzas and the exchange variation has caused great losses in Induve’s industrial activity.

Speaking to Angop, the financial administrator of Induve, Kidy AragAPound o, referred that according to the rules of the National Bank of Angola (BNA) any value imported above US $ 100.000, although these numbers are changed today, must be with letters of credit and these are matured within 60, 90 or 120 days.

I open a letter of credit and I have the amount in kwanzas, I make my spreadsheet according to the expectation, which is the amount I should have at the time of import, which is in kwanzas and I start selling in this period, but in fact when the payment period arrives, there is precisely the exchange variation that is generally negative, causing damage to our activity , he lamented.

Despite this constraint, the company’s management has ambitions to expand its production lines, since the industry supplies almost 60 to 70 percent of the national market with cornmeal, reaching the entire production chain of basic food products, mainly cereals.

Source: Angola Press News Agency