Africa-Press. The International Monetary Fund predicts that Angola’s public debt will reach its maximum in the medium term and urges the government to utilize any surplus from oil revenues to reduce debt and build financial reserves, as declining oil production burdens its financial situation.
The fund stated, “The recent rise in oil prices has improved Angola’s access to international markets and is expected to temporarily compensate for the decline in oil revenues. However, overall financing needs are expected to increase as public debt reaches the maximum stipulated in the medium-term fiscal sustainability law.”
The fund added, following the conclusion of its economic review, that Angola needs to move forward with fiscal consolidation and manage its debt wisely, given the negative impact of declining oil revenues on its medium-term economic outlook.
It also noted that Angola will benefit unexpectedly from rising oil prices due to the U.S.-Israeli war on Iran. While the 2026 budget is based on a reference oil price of $61, Brent crude is currently trading at over $100 per barrel.
The International Monetary Fund stated that Angola’s future growth will depend on the success of its economic diversification efforts, as persistently low oil revenues structurally constrain public finances and the external balance.
Angola is not currently seeking a lending program from the International Monetary Fund, although it is receiving technical assistance to improve tax revenues, analyze expenditures, and identify other necessary reforms. The country is seeking external support from other sources, including the African Development Bank.
