The recent decline in international oil prices—now below the benchmark set in Angola’s 2025 State Budget—will not impact the government’s ability to pay public sector salaries.
This assurance was given by Finance Minister Vera Daves de Sousa, who emphasized the state’s ongoing commitment to financial obligations, both domestic and international.
“Since becoming Finance Minister, our focus has consistently been to safeguard salaries and honor our commitments to international and local creditors, as well as financial institutions.
This helps preserve the trust of both lenders and the people who depend on that funding,” she stated.
The minister clarified that there are currently no plans for a revised state budget, although this could change if low oil prices persist.
Oil remains Angola’s top export commodity, as well as its largest source of fiscal revenue and foreign currency.
Among the key assurances Vera Daves offered was the government’s continued prioritization of salary payments, as has been the case in previous years.
She also underlined her personal dedication to this area, highlighting the multiplier effect salaries have on the broader economy.
“We’re closely monitoring this volatile and uncertain environment. In response, we are exploring insurance mechanisms—similar to those used in countries like Mexico—in partnership with the World Bank to help manage oil price fluctuations.
While such tools come with associated costs, we are evaluating whether to implement them,” she explained.
In the face of falling oil revenues, the Finance Ministry is also seeking to broaden the country’s tax base.
Rather than raising taxes or introducing new ones, the focus will be on improving collection efficiency and targeting entities that should be contributing but currently are not.
“Our goal is to reach those who have so far gone untapped, and for that, the Tax Affairs Department is fully mobilized,” said the minister.
She also highlighted concessional financing as a strategy for leveraging additional resources while adhering to the government’s “do more with less” philosophy—an approach being jointly assessed with the World Bank.
Improving Communication
Minister Daves noted that several international partners have urged Angola to improve its communication practices. .
Specifically, financial institutions and banks have requested that the government make key market information available in English to enhance transparency and global understanding of Angola’s economic policies.
Improved communication, she stressed, will help investors better grasp the reforms underway and the progress made.
The government remains committed to addressing these feedback points from partners.
Lobito Corridor Attracts Investor Interest
Meanwhile, Transport Minister Ricardo d’Abreu has had a busy schedule engaging with investors eager to explore opportunities along the Lobito Corridor.
In various discussions, he emphasized the corridor’s potential to spur economic activity, particularly in logistics, and create jobs for young people along the route.
Secretary of State for Planning, Luís Epalanga, confirmed that government programming aligns with the National Development Plan.
Many of the discussions held in Washington, DC reaffirmed strong partnerships and Angola’s development priorities.
Regarding the ongoing oil price crisis—currently hovering below $70 per barrel—Epalanga acknowledged the possibility of revising strategies should the situation persist.
However, he stressed there is no immediate cause for concern.
Echoing Minister Daves, he reiterated that the government remains well-aligned and is managing all current scenarios effectively.
Epalanga also noted that Angola’s participation in meetings in Washington demonstrated that, despite the global crisis, countries and institutions continue to support multilateralism.
