The National Treasury in Angola has given five billion kwanzas to the Agricultural Development Support Fund (FADA) to support community funds inside agricultural cooperatives and organizations. In order to achieve this, it has developed a financial instrument known as Credit for Community Caisses, which entitles recipients to a maximum of 25 million kwanzas.
Felisbela Francisco, the CEO of the FADA, provided the information on Tuesday during a speech marking the signing of a memorandum between the organization and the Institute for Agrarian Development (IDA).
Speaking in an interview conducted off-site at the event, she explained that the agreement essentially aims to improve credit availability for agricultural cooperatives and associations with community banks, while also establishing the general principles of institutional cooperation between the parties in the field of family farming.
In order to reduce the risks associated with improper use of agricultural and animal production techniques and credit default, the agreement also aims to provide capacity building, specialized technical assistance, and training by the IDA to the beneficiaries of this credit.
The official stated that as part of the stimulus measures, FADA was assigned to support the cooperatives that established community banks. These cooperatives, with the help of the IDA, identified all of the cooperatives in Malanje, Bié, Huambo, and Kwanza Sul through the financial product.
“Clarification sessions have already been held on access to funding, given that FADA still has no regional representation. We have the support of the IDA in receiving the proposals and it has sent them to FADA, which makes the final decision at committee level,” she said.
Additionally, she stated that over 194 cooperation requests have been authorized, and payments have already been sent to over ten structured processes. It is anticipated that all of the requests will be funded by November 15th.
She mentioned the legalization of land and cooperatives as the primary challenges faced. According to Felisbela Francisco, there are presently over 2,000 funded projects and over 13 billion kwanzas invested in FADA’s loan portfolio.
The Director General of the IDA, Felismino da Costa, on the other hand, thinks that one of the main obstacles is creating a system for raising family production in rural areas, along with providing inputs and other equipment.
The memorandum of understanding between the Agrarian Development Institute and the Agrarian Development Support Fund sets goals in the agricultural and livestock sector with the aim of increasing national production, according to João da Cunha, Secretary of State for Agriculture and Livestock.
He also acknowledged that initiatives and programs were in place to increase the nation’s export independence, but that in order to achieve noticeable development outcomes in the medium run, more action must be taken.
Felismino da Costa, the director-general of the Agrarian Development Institute (IDA), and Felisbela Francisco from the Agrarian Development Support Fund (FADA) signed the pact. DOJ/ML/AC/DAN