Luanda, Nov. 13, 2024 (Lusa) - The governor of the National Bank of Angola (BNA) said on Wednesday that up to September gross credit granted to the domestic economy totalled approximately 1.5 trillion kwanzas ( €1.4 billion).
Tiago Dias, who was speaking at the opening of the conference on "Financing Agricultural Production Chains and Food Security", organised by the Association of Banks (Abanc), said that this amount represented an increase of 145 billion kwanzas ( €139.2 million), i.e. 14% compared to the same period in 2023.
According to the governor of the BNA, "this significant growth reflects the confidence of the financial institutions and the continued commitment to the development of the productive sectors".
The governor of the Angolan central bank stressed that the improvement in the domestic business environment, especially in agribusiness, is directly associated with the implementation of Notice 10/2022, of 6 April, on the granting of credit to the domestic sector of the economy.
"During this period, specific loans were granted for the production of goods from the basic food basket and other essential products, totalling 1.2 trillion kwanzas ( €1.1 billion) in 940 operations, representing 17 % of the commercial banks' total loan portfolio.
Tiago Dias also pointed out that, at the same time, there was a slowdown in the rate of growth of the prices of goods and services in the domestic economy, stressing that monthly inflation stood at 1.55 % in October, according to data published on Tuesday by the National Statistics Institute.
"While year-on-year inflation fell to 29.17%, thus confirming the monthly deceleration in inflation since May of this year and the fall in year-on-year inflation since August," he said, stating that "in this context, the continued financing of the productive sector is fundamental to consolidating economic stability and promoting the sustainable growth that Angola craves."
According to Tiago Dias, "the growth of domestic production as a target for reducing imports has made it possible to achieve, to a certain extent, another major objective, a relative contribution to food security in Angola".
The BNA governor admitted that difficulties still persist due to asymmetries, recognising the need to take financial services to the most remote parts of the country, where small producers are found.
"We recognise that in order for our mission to be carried out efficiently, we still have a long way to go," he stressed, calling for the involvement of all banks and economic agents in the process of increasing domestic production and diversifying the economy, with priority given to the farming, fishing and manufacturing sectors.
NME/AYLS // AYLS
Lusa
