For the past seven days, Angola has been grappling with a surge in demand for cash at Automatic Teller Terminals (ATMs), leading to floods of customers in front of bank branches.
The situation is particularly critical in Angola’s capital Luanda City Center area, where banks struggle to meet the demand for money withdrawals. Despite the proximity of ATMs to bank branches, customers face difficulties finding available cash.
The scarcity of banknotes has become a widespread issue, prompting complaints from frustrated residents.
The shortage of cash is evident not only in the City Center but also in the South zone of Luanda. Customers report encountering empty ATMs and long queues, even early in the morning.
The Kero Kilamba shopping center, known for its many Multicaixa terminals, faced a similar situation, with only a fraction of the ATMs having cash available. The cash crunch is causing inconvenience for people attempting to access their funds, leading to increased frustration and dissatisfaction.
The National Bank of Angola (BNA) introduced a rule in September 2021, requiring commercial banks to maintain at least 95% availability of banknotes in ATMs.
However, it appears that banking entities are struggling to comply with this mandate, as the demand for cash outstrips the supply. In some neighborhoods, there are fewer operational bank branches, exacerbating the issue of cash shortages.
Bank employees admit that the daily allocation of funds to supply ATMs is insufficient, especially during periods when public and private companies pay their employees’ salaries.
The scarcity of cash has had a significant impact on the daily lives of Luanda residents. Many have experienced frustration and inconvenience when trying to withdraw money for essential expenses. The long queues and limited access to cash at ATMs have further exacerbated the challenges faced by citizens. Urgent measures need to be taken by banking institutions to address the situation and ensure smoother access to cash for the city’s residents.