2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information

2. Access to Credit – Weak

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

2.1 Banks

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

Source: The Africa Competitiveness Report 2009, World Economic Forum



2.1.2   How sound are the country’s banks? Strong – Financial Sector not directly affected by global crisis

Source: IMF Executive Directors Public Information Notice April 2009

2.1.3  Microlending

Status – Weak – 30 institutions active in Mozambique, only a few in Angola Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 2

NovoBanco – Angola What is the number of active borrowers per institution?

KixiCredito                             12,686
NovoBanco – Angola         2,273

Source: Microfinance Information Exchange



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2.2 Other Sources


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


Financial Freedom

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

Venture Capital

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

Equity Investors

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

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2.3 Credit Bureau


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

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In-Country Assessment Information (as of June 2007)

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.

Source: U.S. Embassy Commercial Information Section


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



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