Exciting News: Sofonie Dala receives invitations from the Industrial Association of Angola and BAI Bank to participate in the forum aiming to present various financing solutions available for Small and Medium-sized Enterprises (SMEs)
Throughout last month, BAI and AIA were hosting a series of over 25 commercial forums across the country.
On June 19, 2024, Sofonie Dala participated in the Forum on Financial Solutions to support the Productive Sector. During its presentation, BAI bank clearly stated that financing startups is challenging due to the lack of collateral, as startups typically do not have assets to secure loans against.
In response, Sofonie Dala, defending startups, advised BAI Bank to rethink their approach and consider startups that promote the empowerment of women and girls and sustainable social development as valuable collaborators for the advancement of Angola.
Sofonie Dala also showcased her most successful projects, receiving positive feedback from the regional director of BAI Bank. She was recommended to establish contact to facilitate possible support through the BAI Foundation.
According to a recent release from the bank, the objective of these forums is to present various financing solutions available for Small and Medium-sized Enterprises (SMEs). The main products highlighted include “PAC Express,” “Crédito Campanha Agrícola,” “National Letter of Credit,” and “Liquidity Advance.” These solutions have piqued the interest of businesspeople, who find them "quite interesting and appropriate" for their project portfolios.
AIA President, José Severino, encouraged businesspeople to "take advantage of the business and growth opportunities presented by BAI" during an event held in Luanda. Additionally, Henrique de Santos, Director of Individuals and Business for the Commercial Region of Talatona at BAI, assured that "BAI has excellent solutions to continue financing national companies because it understands that these are the engine of the economy. We remain open to Small and Medium-sized Companies and aim to increase the number of projects financed."
The Administration of Banco Angolano de Investimentos (BAI) is committed to bringing services closer to pure retail banking, attracting Micro, Small, and Medium-sized companies with credit and financing solutions tailored to current market challenges. In June, the "Liquidity Advance" product was adopted by the Association of Contracted Companies of the Petroleum Industry of Angola (AECIPA).
Sofonie Dala's involvement in these forums and her advocacy for startups mark a significant step forward in fostering a more inclusive and supportive financial environment for innovative enterprises in Angola.
What is the SME Financing Forum?
The SME Financing Forum is an initiative aimed at improving the negative impact on the financial and economic framework of businesses. It focuses directly on a multifaceted approach addressing economic, social, and institutional challenges. Specific considerations include the needs of SMEs and the local business environment, validating repayment capacity, risk profiles, and sectors with high potential. Key barriers to financing such as lack of collateral, credit history, and high transaction costs must also be addressed.
Banks should establish flexible credit lines offering tailored financial products for SMEs through Credit Guarantee Funds, working capital loans, financing for innovation and expansion, and affordable interest rates. Guarantee funds and risk mitigation should be strengthened to reduce banks' risks when lending to SMEs.
Developing credit insurance products to cover defaults, providing financial management and business planning training programs, and fostering strong business skills and growth strategies are crucial. Banks should align financing programs with public policies for economic development and employment.
In conclusion, banks should establish indicators to monitor the impact of financing programs, loan default rates, SME growth, job creation, and gather continuous feedback to adjust programs as needed for effectiveness and sustainability. SMEs - Improving the Economy! Said Jorge Chaves, the forum coordinator, during his speech.
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