Johannesburg, South Africa – The Banco de Poupança e Crédito (BPC), Angola’s largest state-owned financial institution, is working to consolidate its position in the market with recovery and growth initiatives.
Despite grappling with challenges such as a high rate of non-performing loans (NPLs) and the need for structural reforms, the bank has outlined a strategy aimed at revitalising its operations.
AfricaHeadline Reports Team
editorial@africaheadline.com
In the past two years, the Angolan government has allocated over 500 billion kwanzas to recapitalise BPC. This effort is part of a broader public sector banking reform programme designed to strengthen financial institutions and enhance competitiveness.
As part of its recovery strategy, BPC has renegotiated around 30 billion kwanzas in outstanding loans with businesses and individual borrowers over the last half of 2024. Despite these efforts, the bank still contends with an NPL ratio exceeding 60% of its total loan portfolio, a figure it aims to reduce significantly by 2025.
BPC has invested approximately $200 million in modernising its systems and launching digital banking services to improve financial inclusion across Angola.
The bank’s flagship mobile application, BPC Connect, has garnered over 150,000 downloads since its launch in July 2024, enabling users to conduct transactions, access credit, and manage accounts remotely.
This push towards digital transformation is part of BPC’s broader effort to bridge the financial services gap between urban and rural areas, contributing to Angola’s national financial inclusion agenda.
In 2024, BPC disbursed over 150 billion kwanzas in credit to small and medium-sized enterprises (SMEs), focusing on sectors such as agriculture, manufacturing, and trade. Approximately 65% of these funds were allocated to projects outside Luanda, reinforcing the bank’s commitment to regional development.
Notably, the bank has provided financing for initiatives aimed at improving food security, including irrigation and agricultural mechanisation projects in Benguela and Huambo provinces.
These efforts align with Angola’s national goal of reducing dependency on imports while boosting domestic production.
Despite significant investments and reforms, Angola’s banking sector remains vulnerable to macroeconomic challenges, including oil price volatility and currency fluctuations. However, forecasts suggest that the sector will experience annual credit growth of 5% through 2026.
Market analysts believe that BPC is on track to restore profitability by late 2025, with expectations that it will recover 50% of its overdue loans by that time.
BPC’s emphasis on digitalisation and decentralisation is in line with Angola’s broader economic diversification efforts.
If current reforms and investments proceed as planned, the bank is well-positioned to strengthen its role as a key driver of economic growth in the country.
In the face of Angola’s ongoing economic recovery, BPC continues to serve as a cornerstone of the nation’s financial infrastructure, demonstrating that investments in the banking sector are critical to fostering sustainable development.
