by Amira Berrada - Africa -

MICROCAPITAL BRIEF: Government of Angola to Invest $2b in Small and Medium-Sized Enterprises (SMEs)

Making Finance Work for Africa, a partnership established in 2007 to facilitate financial sector development among African governments and the private sector, recently announced that the government of Angola is investing EUR 1.5 billion (USD 2 billion) in small and medium-sized enterprises (SMEs) through lending at subsidized interest rates, tax rebates and support for the technology sector. The program aims to reduce Angola’s dependency on oil revenue as well as contribute to economic growth by supporting the emergence of new companies.

According to a report from the African Development Bank (ADB) called The ADB’s Private Sector Country Profile 2009 [2], “no more than two or three percent of SMEs [in Angola] have access to credit, mainly because of the difficulties new companies have in providing guarantees.” [1]

By Amira Berrada, Research Associate

About Making Finance Work for Africa: The Partnership for Making Finance Work for Africa (MFW4A) was established in October 2007 at the Annual Meetings of the World Bank and International Monetary Fund (IMF). MFW4A aims to facilitate and coordinate financial sector development among African governments, the private sector and development organizations by improving access to information, promoting financial sector development projects and raising awareness. No information has been disclosed about the organization’s budget.

About African Development Bank: Established in 1964, the African Development Bank (AfDB) provides loans and grants to governments and private companies in Africa. Owned and funded by member governments, the bank has a mandate to reduce poverty and promote sustainable development. Currently, AfDB shareholders consist of 77 member countries, which include 53 African countries to which it commits a total of approximately USD 3 billion annually. Donald Kaberuka serves as president of AFDB as of April 2011.

Sources and Resources:

[1] http://www.mfw4a.org/news/news-details/7/angola-govt-invests-EUR15bn-to-improve-sme-access-to-finance.html

[2] http://www.afdb.org/fileadmin/uploads/afdb/Documents/Evaluation-Reports/ADB-BD-IF-2008-228-EN-MOZAMBIQUE-PRIVATE-SECTOR-COUNTRY-PROFILE-AUGUST-2008.PDF

MicroCapital.org article, March 12, 2010, “MICROCAPITAL BRIEF: Banco de Comercio e Industria (BCI), a Bank Located in Angola, Launches Microcredit Program” https://www.microcapital.org/microcapital-brief-banco-de-comercio-e-indus…

MicroCapital.org article, September 6, 2010, “MICROCAPITAL BRIEF: Banco Sol of Angola and Federation of Angolan Women Entrepreneurs Sign Agreement to Provide Access to Microfinance Services for Three Years” https://www.microcapital.org/microcapital-brief-banco-sol-of-angola-and-f…

MicroCapital.org article, November 1, 2011, “MICROCAPITAL BRIEF: Standard Bank: Majority of Africans Lack Access to Microfinance, Other Financial Services” https://www.microcapital.org/microcapital-brief-standard-bank-majority-of…

MicroCapital Universe Profile for African Development Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Afr…

MicroCapital Universe Profile for Making Finance Work for Africa: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mak…

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.