Angola needs to diversify the economy to reduce impact of falling oil prices

30 October 2014

The low price of oil on international markets is an opportunity for Angola to diversify its economy and reduce dependence on exports of hydrocarbons, the country’s Economy Minister said Wednesday in Luanda.

Abraão Gourgel noted agriculture, food, agro-industry, mining activity, as well as the oil production chain as potential sectors for economic diversification.

He also mentioned housing, water, energy, transport and logistics, “which are those that the government has already identified in its diversification programme, which aims to reduce the impact of oil price fluctuations on the national economy.”

Oil Minister Jose Maria Botelho de Vasconcelos, said after a Council of Ministers meeting that Angola should record average daily production of 1.83 million barrels in 2015, an increase of 10 percent compared to the amount included in the State Budget for next year.

With the benchmark price in the international markets at around US$85 per barrel, the minister said the situation was unsatisfactory, but said he hoped that the next meeting of the Organization of Petroleum Exporting Countries (OPEC) would find a solution.

Oil production in Angola is increasingly carried out in deep water, which requires high investments, with Brent oil as a reference. (macauhub/AO)