PAC benefits from more than $1 billion

Luanda – The Credit Support Programme (PAC), created by the Angolan Executive, in 2019, will benefit this year from a financing estimated at just over USD 1.1 billion, aiming to boost its implementation.

Out of this amount, one billion dollars will be made available by the German bank, the Deutsche Bank, while the Development Bank of Angola (BDA) has 120 million dollars, according to the minister of Economy and Planning, Sérgio Santos, who spoke to the press last Saturday, on the sidelines of a working meeting between ministers, provincial governments and officials from various ministerial departments.

In addition to this amount, he announced, commercial banks have also renewed their intention this year to finance domestic producers with an amount of 141 billion kwanzas.

He recalled that of the 141 billion kwanzas made available by commercial banks last year, Akz 136 billion were granted to 43 national companies.

Soon, he said, an update will be made, within the scope of Notice 7 of the Central Bank of Angola (BNA) and in terms of the PAC instrument, to increase the number of promoters benefiting from financing.

He stated that the BNA will increase the requirement to grant more financing to producers, through commercial banking.

According to the minister, the problem with the implementation of the PAC “does not have to do with the availability of funds”, but with refining and organizing the credit and promoters’ facilitation structure.

To reverse this situation, the Government hired four consulting companies that will be paid by public funds, to work fundamentally with micro, small, medium-sized companies and cooperatives.

“We are working with the provincial governors so that until next April it is possible to have at least 15 cooperatives, in each province of the country,” he said.

To the minister, the implementation of the PAC at the provincial level involves, essentially, the creation of multi-sector teams, with a view to directing the activity of credit to micro, small, medium and large companies.

Production outflow

The minister clarified that the PAC is also intended for logistics and distribution companies, aiming to facilitate the flow of local production.

According to the minister, the problem of the production’s outflow must be seen in two perspectives: construction of infrastructure (roads) and the existence of logistics and distribution operators.

He said that the reality of the country shows that large commercial areas, when purchasing their products, pay national producers late, due to lack of financing, a fact that can be overcome with the PAC.

“The government wants to change this reality so that payments to producers are made when products are purchased (straight payment), aiming to boost, mainly the rural trade”.

Without this dynamics, he said, the country will not have an increase in national production, due to the limitations of operators and the lack of product outlets.

The meeting, which served to adjust the way provincial governments should act for the successful implementation of the PAC in their respective provinces, was chaired by the minister of State and Head of the Security House of the President of the Republic, Pedro Sebastião, the minister of State for Social Area, Carolina Cerqueira, and the minister of State and Chief of Staff of the President of the Republic, Frederico Cardoso.

Source: Angola Press News Agency