Angola should increase the transparency of the roles played by the different institutions operating in the oil sector and focus on the domestic processing of oil, said a recent report from the African Development Bank (ADB).
“Among the recommendations to ensure that Angola’s oil resources are used in a transparent and effective manner are the creation of policies that review the institutional framework to separate and increase clarity about the roles of the different institutions in the oil sector,” said the ADB.
In the ADB’s Southern Africa Economic Outlook report, analysts also call for “development of oil revenue management policies” and “maximisation of gas resources to produce electricity.”
In the regional analysis of the economies of the southern African region published on Tuesday in Abidjan, the economic capital of Côte d’Ivoire, the ADB noted that “individual economies have little room for manoeuvre in the context of low growth,” hence the importance of growth-enhancing policies without overburdening the budget.
“Low oil prices have helped domestic demand in the region, although Angola, the largest producer and exporter in the area, continues to experience the adverse effects of this decline,” said the ADB, adding that the authorities’ response was “budgetary consolidation measures, with the greatest burden on public investment expenditure.” (macauhub)