Source: Jornal de Angola - ECONOMY - 02/10/2009

The chairman of the Board of Directors of the Development Bank of Angola (BDA) affirmed, on Wednesday, in Luanda, that the growth trend of the informal market in Angola is a threat to the development of the country. Paixão Franco, who made this statement in the fourth session of the Development Jango, organized by UNDP, where “Development of the private sector in Angola” was the topic addressed, referred that the informal market is a threat due to the characteristic of non-taxation. The chairman of the Board of Directors of BDA stated that, in the context of Angola, when it comes to the informal market, it is not only about zungueiras or Roque Santeiro, but also about companies that do not pay taxes and do not have accounting. "They are, in many cases, even able to sponsor certain events," he stressed. These, he said, are some of the elements that, “although dispersed, when systematized, contribute to the range of constraints for the development of the private sector”. In the field of agriculture, Paixão Franco stated that it is difficult to work with farmers, as "a considerable part only goes to the farm at the weekend". "The young people of the Medium Agrarian Institutes are the hope for the resurgence of agriculture, as the farm only develops if the manager is there," he said. The search for practical and effective solutions to the problem involves the creation of a technological base, technical assistance, supply and import planning, he said. As for the efficiency of ports, he said that the problem is not the creation of new ones, but the organization of those that exist. Paixão Franco recalled that, in 2008, Angola's GDP grew 6 percent, at the same time that oil exports represented more than 80 percent. The Chairman of the Board of Directors stressed the importance of policies for diversifying the economy, which should be seen in a long-term perspective. Paixão Franco said that "there are many opportunities, but also many constraints to the performance of the private sector, regardless of their size". "Bureaucracy, the deficiency of ports and airports, the problem of precarious roads and the discontinuity in the supply of electricity are, among many, constraints that companies face", he stressed.