Angola asks International Monetary Fund for assistance

7 April 2016

The government of Angola has submitted a request for aid to the International Monetary Fund (IMF), according to a statement issued Wednesday in Luanda by the Ministry of Finance.

The request for aid was justified by the Ministry with “the need to implement macroeconomic policies and structural reforms to diversify the economy and meet the financial needs of the country.”

The document did not specify the amount of intended financial assistance, focusing rather on the assumption of a set of political commitments. These involve increasing the transparency of public accounts, greater economic diversification and the promise of greater commitment in the areas of agriculture, fisheries, mining, education, financial services, water, basic and health services.

Entitled “Angola is committed to economic diversification with the support of the IMF,” the text said, “the government is aware the strong dependence on the oil sector leads to the vulnerability of public finances and the economy,” arguing that efforts to diversify the economy began “many years ago.”

“The sustained efforts for many years to promote economic diversification have resulted in a significant increase in the non-oil sector’s contribution to GDP to 68.1 percent today, against 40 percent in the 1980s, but oil still accounts for over 95 percent of export earnings and 52 percent of tax revenue in 2015,” the statement said. (macauhub/AO)