The chief economist of Banco Fomento Angola (BFA), José Miguel Cerdeira, stated that there is no viable alternative to using oil revenues to finance Angola’s economic diversification.
He emphasized the need for capital investment to sustain the country’s energy transition.
“There’s no great alternative for the Angolan economy at present. Oil revenues must finance diversification and drive the development of an economy that includes other exports beyond oil,” Cerdeira said in an interview with Lusa, discussing the ongoing Angola Oil & Gas Conference in Luanda.
While the energy transition and economic diversification efforts are making progress, Angola remains heavily reliant on oil, not only for revenue but also for maintaining the quality of life for its citizens. “Oil is crucial for the foreign currency it brings.
A reduction in foreign currency leads to exchange rate depreciation or shortages, which negatively impacts the purchasing power of Angolans and the operations of companies,” he explained.
Cerdeira warned that the country’s reliance on oil will continue for the foreseeable future, as the process of increasing non-oil exports or reducing imports is a slow one.
He estimated that it may take up to 20 years for other exports to have a significant impact on Angola’s economy.
“Even with current growth rates, it would take five years for non-oil and non-diamond exports to reach $100 million per month, the current level of diamond exports, and 10 years to represent a third of today’s import levels,” Cerdeira noted.
He concluded that oil will remain central to Angola’s economy: “Without oil, living conditions would worsen, as the country remains dependent on global oil prices to import goods and services.”
The Angola Oil & Gas Conference, held at the Talatona Convention Centre, is Angola’s key event for the oil and gas sector.
Supported by the Ministry of Natural Resources, Oil and Gas, Sonangol, the African Energy Chamber, and the Petroleum Derivatives Regulatory Institute, the conference brings together industry stakeholders to discuss the future of the sector. Last year’s event hosted over 2,200 delegates from 41 countries and saw seven agreements signed.
