AngolaDownload Full Scorecard
Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property
Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property? No – Weak, but financial sector has been growing rapidly and some privatization is underway.
2.1.1How easy is it to obtain a bank loan? 4% of businesses report they can get bank financing for investment purposes – Very Weak
2.1.2 How sound are the country’s banks? Strong – Financial Sector not directly affected by global crisis
Status – Weak – 30 institutions active in Mozambique, only a few in Angola
18.104.22.168 Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 2
NovoBanco – Angola
22.214.171.124 What is the number of active borrowers per institution?
NovoBanco – Angola 2,273
Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange? No – Very Weak – but credit to the private sector increasing
2.2.1 How much control does the government exert over financial services? Weak for entrepreneurs – Score 40 out of 100 – Financial governance remains poor
2.2.2 How easy is it for entrepreneurs to find venture capital?
Very Weak – Score 2.4 out of 10; Ranking 109 out of 128
First fund started in June 2009
2.2.3 How easy is it to raise money by issuing shares on the stock market? Very Weak – Long planned Exchange yet to have any listings
Core Question: Is comprehensive credit information available through public and private credit bureaus? Yes – Weak, although access to credit is still very limited
Overall Ranking 129th out of 185 Trend ↓
2.3.1 What is the depth of information available in credit bureaus? Score – Strong – 4 out of 6 with a higher number indicating more information is available
2.3.2 What is the extent of public credit registry coverage? Weak – 1.8%
2.3.3 What is the extent of private credit registry coverage? Very Weak – Not available
FQ 4. How available are mortgage loans for purchasing property, who is the typical user and what are the prevailing trends?
The normal banking need to identify customers and require collateral are blocked because State-owned property cannot be offered as collateral, the judicial system is weak, credit histories cannot be tracked and few houses have street addresses.
FQ 5. What are the interest rates, term and loan-to-value ratios for available mortgages?
Some 15 year mortgages at 8% are starting to become available.
FQ 6. Are there any informal barriers to borrowing such as for women or minorities?
Luanda (the capital city) is surrounded by massive unplanned informal settlements with poor infrastructure and services. Dislocation of occupants in informal settlements to clear land for new developments without plans for adequate housing is counterproductive and risks the creation of social tension. The history of conflict in Angola underlines the importance of a perception of equity in planning and the importance of addressing concerns of the communities impacted by real estate development.
Source: IRPF Assessment June 2007