The Development Bank of Southern Africa (DBSA) is opening up a R1.75 billion credit line to fund reconstruction and development projects in Angola.
The fund will be operated through Angolan bank Banco Africano de Investimento in partnership with the African Development Bank, and comes on the back of last week’s state visit to South Africa by Angolan President Jose Eduardo dos Santos.
Under the terms of a “declaration of intent on the utilisation of financial facilities” signed during Dos Santos’ visit, the Industrial Development Corporation and the Export Credit Insurance Corporation are also expected to expand on their financing programmes with Angola.
The credit, which could run into billions of dollars, will help South African companies secure lucrative contracts in Angola, a market previously dominated by China, Brazil and Portugal.
Aguinaldo Jaime, the head of Angola’s private investment agency ANIP, said: “The procedure and mechanism are still being worked out between the financial institutions, but the declaration is a clear signal that the political will is in place for these financial mechanisms to facilitate the co-operation between the two countries.”
He added: “I think the two countries have recognised that you can boost investment only if you have financial mechanisms in place.
“This is what we have learned relating to our experiences with Portugal, China and Brazil.”
One organisation hoping to benefit from the credit lines is the South Africa-Angola Housing Initiative (SAAHI), an umbrella management group that has been planning big infrastructure and construction projects in three provinces in Angola.
SAAHI chief executive Sello Rathete said it already had a commitment for about $500 million (R3.4bn) from the DBSA.
Other co-operation deals inked between Angola and South Africa during Dos Santos’s historic state visit, the first by an Angolan head of state since 1994, covered information and communications technology, public works and infrastructure development and a protocol on technical co-operation on veterinary services.
Although no details were given, an energy implementation plan signed by ministers is believed to relate to electricity supply, rather than oil and gas as has been suggested.
The deal between South Africa’s PetroSA and Angolanm state oil firm Sonangol, which could lead to a joint refining project, is still under discussion, according to President Jacob Zuma.
Responding to complaints about the difficulties in obtaining entry visas into Angola, Dos Santos said his government was working on possibly creating a multiple-entry visa for South African business executives.. - Louise Redvers