The Minister of State for Economic Coordination, José de Lima Massano, has acknowledged that the recent increase in global oil prices is easing pressure on Angola’s public finances and will help sustain the main projects outlined in the 2025 General State Budget (OGE).
When questioned about the impact of rising crude prices, Massano emphasized that it is “too early to draw definitive conclusions.”
However, he noted that oil prices are approaching the $70 per barrel benchmark set in the current year’s budget, suggesting that the government can proceed with its planned programs without needing to make immediate adjustments.
Speaking on the sidelines of the 17th US-Africa Business Summit, which runs through Wednesday in Luanda, Massano explained that the government had initially prepared a contingency plan in response to the earlier drop in oil prices. The recent uptick, however, offers renewed flexibility.
“We had already been preparing a scenario for spending restraint, even considering the suspension of some expenditures,” he said. “But this new development prompts us to reconsider.
If prices remain, on average, within the levels forecast in the budget, we will likely be able to implement our key economic and social development initiatives for 2025.”
Despite this more favorable outlook, Massano underlined the government’s continued cautious approach to public financial management.
“What we have now is a trajectory that allows us to execute the budget without cuts that might jeopardize our 2025 targets,” he stated, reiterating that the situation is still developing and subject to change.
In recent days, the price of Brent crude — Angola’s benchmark — has exceeded $70 per barrel. This surge is attributed to heightened geopolitical tensions in the Middle East and concerns over a potential closure of the Strait of Hormuz by Iran.
Massano urged prudence in interpreting the trend: “We need to allow more time for this to stabilize, but the current pricing environment offers a more favorable context for achieving our policy goals.”
The minister also reaffirmed Angola’s commitment to maintaining dialogue with international partners, including the International Monetary Fund, to stay on course with its fiscal consolidation agenda.
Regarding the World Bank’s $500 million financing package for Angola — earmarked to support the State Budget and projects in key sectors such as agriculture and youth employment — Massano confirmed that the initiative “is moving forward.”
