Angola’s Sonangol to be restructured

16 October 2015

The government of Angola has set up a commission to study the situation of the state oil company Sonangol and the oil sector, said Thursday in Luanda the country’s Vice President Manuel Vicente.

The Angolan Vice President and former chairman of Sonangol, who was giving a state of the nation speech to Members of the National Assembly on behalf of the President, said that the commission aims to propose the basis for restructuring and a more efficient and effective management model for the state oil company.

Vicente pointed out that the weight of oil production in gross domestic product had fallen from 46 percent and 58 percent in 2002 and 2008, respectively, to just 35 percent in 2014, a lower value than in many oil-producing countries due to the doubling between 2008 and 2014 of non-oil GDP growth rate.

However, he said, “the weight of oil tax revenue in overall tax revenues is still very large, accounting for two thirds of the total and about 95 percent of exports (…) and it is therefore necessary to intensify the implementation of the tax reform approved by this Assembly in 2014 in order to broaden the tax base and reduce the vulnerability of public spending to oil price fluctuations.”

Forecasts for this year point to a growth rate of real GDP of 4 percent, with the oil sector growing 7.8 percent as a result of increased production and the non-oil sector by 2.4 percent, reflecting growth levels in agriculture (2.5 percent), manufacturing (2.6 percent) and market services (2.2 percent). (macauhub/AO)