Luanda - The proposal of the General State Budget (OGE) for the 2025 financial year aims to transform the Angolan Active Venture Capital Fund (FACRA) into a Venture Capital Fund (VCF), with a view to expanding the role of this body in the financing of start-up companies, small and medium-sized enterprises.
According to the proposal of the State Budget/2025, whose Joint Opinion Report was approved this Tuesday by the Members of the Parliament of the 1st, 4th and 5th Committees of the National Assembly, FACRA is limited to investing in venture capital for micro, small and medium-sized enterprises (MSMEs), as well as startups, but the VCF plans to adopt a new, more active and transversal business model to finance these companies.
In addition, the new entity will be able to invest directly in the beneficiary commercial companies, through other collective investment undertakings that may be specified and provided for in national legislation.
The document adds the possibility of investing in equity instruments and convertible or other hybrid bonds, as well as subordinated debt or a combination of these instruments.
In addition, the VCF plans to expand its offer to the possibility of issuing capital guarantees and bonds, in order to promote the mobilization of private investment through the most diverse vehicles and stimulate the capital market, promoting greater investor security.
Among other actions, the 2025 State Budget proposal aims to massify the consumption of goods and services produced in the national territory, establishing the Legal Regime for the Incentive to National Production, through the vehicle of the contracting public entities.
This Budget foresees a growth of the national economy of around 4.14% and the reduction of VAT on production equipment, from the current 14% to 5%, maintaining the payment period introduced in 2023 of up to 24 months.
The document also includes measures to support investment in food security, through the restructuring and dynamization of the cereals and grains sector, strengthening agricultural mechanization, mainly with regard to family agricultural production.
The 2025 State Budget estimates revenues and expenses in the order of 34 billion, 633 billion, 790 million, 87 thousand and 312 kwanzas.
This proposal was prepared on the basis of an oil price of US$70/barrel and oil production of one million and 98 thousand barrels of oil per day, predicting lower inflation of around 16.6%, compared to the accumulated inflation rate of 23.4% that is expected by the end of 2024. ASS/QCB/DOJ
