The International Monetary Fund (IMF) has projected that Angola’s public debt could reach its legal ceiling in the medium term, raising fresh concerns about the country’s fiscal stability as oil revenues continue to decline.
In its latest Article IV review of Angola, the IMF urged the government to channel any oil revenue windfalls into reducing debt levels and building fiscal buffers. It noted that while higher global oil prices have temporarily improved access to international markets, this relief may not last.
The Fund warned that despite a recent surge in oil prices—partly driven by geopolitical tensions in the Middle East—Angola’s gross financing needs are expected to rise. It added that public debt is on track to hit the limit set under the country’s Fiscal Sustainability Law if current trends persist.
Angola’s economy remains heavily dependent on oil, but the IMF stressed that long-term growth will depend on successful economic diversification. Structural declines in oil production, it said, continue to weigh on public finances and external balances.
Although Angola is not currently under an IMF lending programme, it continues to receive technical assistance aimed at strengthening tax collection, improving spending efficiency, and supporting broader reforms. The country is also seeking additional external financing support, including from the African Development Bank (AfDB).
source: newtelegraph