Between 2022 and June 2024, bank financing for mining projects in Angola totaled 26.6 million kwanzas, representing just 3.0% of the 887.1 million kwanzas allocated to the extractive industry.
This data, presented at the 3rd Forum on Banking and Mining in Luanda, reflects a broader trend of minimal financial support for mining initiatives.
The study, conducted by the Center for Studies and Scientific Research of the Higher Polytechnic Institute of Angola (IMETRO) and Bumbar Mining, revealed a stark lack of investment in both greenfield and brownfield mining projects.
Lubanza Pedro, project coordinator, noted that recent data from the National Bank of Angola highlights the minimal financing for these sectors.
Pedro indicated that Endiama, the Angolan National Diamond Company, has identified 15 projects across six provinces covering 43,674 square kilometers.
Attracting investment to these areas could potentially propel Angola into the ranks of the world’s top three diamond producers.
The research, conducted from August 12 to 23, 2024, critically assessed the landscape of bank credit for mining. It found that credit dedicated to the mining sector was a mere 0.153% of the total credit for extractive activities. This low financing level reflects a general aversion to risk among financial institutions.
Makenda Ambrósio, a consultant for the Ministry of Mineral Resources, Oil, and Gas, highlighted the importance of this forum.
He emphasized the need for specialized banking capabilities to assess and mitigate risks through risk insurance, resource certification, and strategic partnerships.
Such measures could provide financial institutions with the necessary security to support mining projects.
To turn Angola’s mineral potential into real economic benefits, substantial investment, technological innovation, and a strong financial system are crucial for supporting prospecting and research in the sector.
