In a particularly difficult environment, with the currency crisis in mid-2023 leading to a reversal of the country’s macro-financial situation, the Angolan executive has maintained the stability of the macroeconomic framework, the consolidation of public finances and the sustainability of public debt. The Ministry of Finance has responded with budgetary rigour, thereby maintaining international confidence. This commitment has made it possible to reduce the debt service burden from 138.4% in 2020 to 63% in 2025.
The Angolan government’s debt service for 2025 has been set at 57.4 billion kwanzas or 58.61 billion dollars, an amount equivalent to 63% of GDP. This was the outcome of a two-day workshop in Luanda chaired by the Minister of Finance, Vera Daves de Sousa. After reaching 138.4% in 2020, the debt-to-GDP ratio will fall to 64.8% in 2022, thanks to policies favourable to foreign direct investment.
Today’s meeting is very important because it gives us, the executive, the financial institutions represented here, the students of social education and, in fact, the general public, the opportunity to take stock of the evolution of our public debt in recent years and to make public our plan for it until 2025, taking into account the indicators that we want to achieve.
Vera Daves de Sousa, Minister of Finance
According to the Angolan authorities, the public debt service for 2025 is estimated at around $15 billion. Speaking at the meeting, Vera Daves de Sousa reaffirmed the executive’s commitment to transparency, accountability and sustainability in public debt management policies.
One thing is certain. Debt is a strategic instrument for the growth and development of our country. Obviously, this solution is and always will be collection, tax revenue, the creation of own resources and the basis of everything. But public debt is an instrument that we cannot ignore. It’s guerrilla work, it’s demanding, difficult work, but it’s fundamental to guaranteeing macroeconomic stability and financing our development priorities.
Vera Daves de Sousa, Minister of Finance
The Angolan economy was hit in 2023 by a series of shocks: the fall in oil prices that began in mid-2022 and in production during the first half of 2023 led to a weakening of the budget and external sector positions. In addition, the end of debt moratoria led to an increase in external debt servicing, a reduction in the supply of foreign currency on the market and pressure for a depreciation in the exchange rate.