The World Bank has approved a US$100 million support package for Angola that includes a facility to improve the availability of import letters of credit (L/Cs).

The package specifically aims to support small- and medium-sized enterprises (SMEs) operating in Angola.

Package details

The package comprises two credit lines worth US$50 million each, granted via the World Bank Group's International Finance Corporation (IFC) to Banco Millennium Atlântico.

The first line will be dedicated to SMEs with the amount of funding limited to a maximum of US$5 million. It aligns with President Joao Lourenço's SMEs Financial Inclusion Strategy, which aims to diversify the economy.

The second credit line will enable Banco Millennium Atlântico to provide guarantees for the acquisition of raw materials and equipment through L/C openings.

Reaping benefits

Angola has recently benefited from several loans granted by the World Bank to speed up the diversification of an economy heavily dependent on oil revenues. In May this year, the IFC announced it is opening a representation office in the Angolan capital, Luanda.

Banco Millennium Atlântico is the result of a merger of Banco Millennium Angola and Banco Privado Atlântico.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.