Angolan minister of Economy and Planning Mário Caetano João has presented the country’s experience on the Informal Economy Reconversion Programme (PREI).
This was during the annual meeting of the African Caucus 2023 attended by Word Bank Group, held on 6-8 July in Sal, Cabo Verde.
In his speech, the minister said PREI has been underway in Angola since 2020 and has allowed the formalisation of 251,450 informal market operators.
The official also said that the initiative enabled the training of 49,305 traders and 4, 919 informal operators have benefitted from the microcredit associated with the programme.
The minister called for the need to work with this segment to make it grow, with training, financing, social security and the broadening of the tax base.
He said that the first stage has come to an end, adding that a sustainability one has arrived, which entails connecting the "Kwenda" Social Protection Strengthening Programmes, PREI and the Programme to Support Production, Export Diversification and Import Substitution (PRODESI), focused on formalisation of services in the municipalities.
Mário João encouraged the World Bank to find a financing mechanism for the transition from informality to formality, as part of its Performance for Results Programme.
In turn, the director of the World Bank for Angola, Albert Zeufack, praised the Angolan government initiative to launch PREI, as the move is meant to formalise the activity performed by the informal economic agents.
The annual high finance event, named African Caucus 2023, brought together the ministers of Finance and Planning and Governors of the African central banks, with the International Monetary Fund (IMF) and World Bank Group (WBG).
Cabo Verde chairs and host the 2023 African Caucus, after Morocco, which hosted the event in 2022.
Source: Angola Press News Agency (APNA)