2023-07-10 10:18:54
News from Angola – The Minister of Economy and Planning, Mario Caetano João, called for the need to support the Informal Economy Reconversion Program (PREI) sector, and that it should not be seen as bad in itself, NA learned.
Mário Caetano João who was speaking during the African Caucus, the platform of African governors of the World Bank and IMF that took place from the 6th to the 8th of this month, on Sal Island, in Cape Verde, under the motto “New modalities and mechanisms to finance the economic development in Africa”.
He said it was essential to work with this segment to make it grow with training and funding.
“It is an issue that plagues all African economies, and we need to not see the informal sector as an evil in itself, so we need to work with this segment to make it grow, with training, financing, social security and the broadening of the tax base, the measure of micro-operators that are in transition”, he warned.
During his speech, the Minister said that after the first phase was over, the sustainability stage had arrived, which involves interconnecting the Kwenda, PREI and PRODESI programs, with a logic of municipalization of formalization services.
The official appealed for the World Bank to find a financing mechanism for the transition from informality to formality, within the framework of its Programme, PforR, Performance for Results.
“This financial instrument is used for public services, such as education and health, where the bank disburses by providing the service. As the issue of reconversion is a public service for informal economic operators, you would like to see the bank increasingly committed to this issue”, appealed the Minister.
On the other hand, the minister said that they were studying the possibility of carrying out financial engineering to change the debt for climate projects, a dynamic that is already starting to take shape, highlighting Cape Verde having managed to change its debt with Portugal in these terms. .
On his turn, the director of the World Bank for Angola, Albert Zeufack, congratulated the Angolan government for the implementation of the PREI, as it is a vision that does not see informality as an evil, but an economic activity that needs attention. of the authorities for the empowerment of informal economic agents for their transition to formality and for the productivity growth of micro-enterprises and the economy.
Albert Zeufack said that the work that Angola is doing is excellent because he understands that in addition to the fiscal aspect, it is important to support the informal sector in increasing its productivity through training, financing and reducing bureaucracy. According to him, after growing up, they can then contribute, through taxation, to more economic productivity and job creation.
During the meeting, documents were produced that will serve as an instrument of dialogue between the continent and the Breton Woods institutions over the next 6 months.
Among the documents is the memorandum on new modalities and mechanisms to finance economic development in Africa, it is the main tool of dialogue between the Caucus and the President of the World Bank, Ajay Banga and the Director General of the International Monetary Fund, Kristalina Georgieva.
From the Caucus 2023, comes Sal’s statement that reflects the points raised by the memorandum, namely, the appeal of African countries to the Breton Woods Institutions to help guarantee the sustainability of the public debt, to unlock climate and energy financing, as well as , help drive private sector development.
Angola was represented by a delegation led by the Minister of Economy and Planning, by the Secretary of State for Budget and Public Investment and by the Ambassador of Angola in Cape Verde.
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