IMF recommends that Angola should diversify its economy

31 January 2013

The International Monetary Fund (IMF) has recommended that the Angolan government launch programmes to diversify the economy, by focusing on infrastructure, human capital and reducing business costs, according to a statement issued in Washington.

At the end of a visit to Luanda, between 16 and 29 January, a technical team from the IMF headed up by Mauro Mecagni, the IMF noted that oil, which is the driving force of the Angolan economy, would benefit from “high” prices per barrel and an increase in oil production of around 4 percent, to over 1.8 million barrels per day.

The same report noted that the IMF technicians recommend that the Angolan authorities ensure a “timely transfer” of the revenues of state oil company Sociedade Nacional de Combustíveis de Angola (Sonangol) to the Treasury.

The statement said that the proposed 2013 State Budget was an important step towards “universal and unified” fiscal accounting, which would mean that Sonangol, for the first time, would no longer be involved in quasi-fiscal transactions.

However, the IMF noted that the proposed budget included significant expenditure and consequently led to a budget deficit, and this the authorities would need to watch the impact of that deficit on the balance of payments. (macauhub)