2019 expected to be a critical year for Angola

21 November 2018

Next year – 2019 – is expected to be critical for Angola, which may see its economy rebound from three consecutive years of recession, according to Africa Report Angola 2018, which focuses on the first year of power of President João Lourenço.

The third President of Angola, following a 384-year term by his predecessor, has been asserting himself politically in a context of economic and social crisis, according to the report cited by the China-Lusophone Brief (clbrief.com), a news service focused on China and the Portuguese-speaking countries.

The recession period is expected only to come to an end next year, with the State Budget for 2019 already showing a growth forecast of 2.9%.

Due to the fall in the price of oil, which the country depends on, as well as the fall in production, the economy contracted by 2.6% in 2016, improved slightly in 2017, by +0.1%, and is expected to end 2018 with a contraction of 1.1%.

Reinforcing commercial banking, in terms of its financial robustness but also in compliance with international standards, is an essential condition for the Government to work directly with international institutions that are attracted to the market, including KfW and Germany’s DEG, the UK’s DFID, France’s Proparco and Spain’s Cofides, the Africa Monitor newsletter reported.

The President, the report said, has already been informed “that these large bilateral development banks as well as multilateral development banks – such as the World Bank, the African Development Bank and the China Development Bank (the managing entity of the China-Africa Development Fund) – will not work in Angola without a clean-up of the financial system.”

The Africa Report Angola 2018, in partnership with the Legis-PALOP+TL legal database, follows previous reports on Cabo Verde and Mozambique. (macauhub)