Angola’s economy has experienced rapid economic growth since the end of a 27-year civil war in 2002, peaking at about 12 percent in 2013.
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“However, the oil sector still represented over 95 per cent of export earnings and 52 per cent of government revenue in 2015”, the government stated.
Expressing concern about sluggish growth in the west since the 2008-09 downturn, the Washington-based International Monetary Fund said it was time for ultra-low interest rates and quantitative easing to be accompanied by a range of structural reforms.
An IMF official said the fund expects to start discussions with Angola during next week’s spring meetings. The Government seeks to establish a profile of public expenditures that is consistent with its goal of sustainable development and is committed to reforming the non-oil tax system, the efficiency of which needs to be improved further.
Zandamela emphasized the implementation of a recently-adopted arrears management strategy, and the continuation of public financial management reforms to enhance the transparency of, and accountability for, government operations. The ministry said the government was also implementing an ambitious programme of fuel subsidy reforms to shore up the country’s finances.
The Finance Ministry also mentioned the sectors of agriculture, fisheries and mining, as priorities for diversification of economy in short term.
According to the source, the IMF support is a response to a request by Angolan government that will work with the worldwide organisation on planning and implementation of policies and reforms to improve macroeconomic and financial stability, in particular through tax discipline.
Even as the country has made progress since 2012 to improve economic and social infrastructure, “considerable development efforts are essential for the reconstruction of Somalia”, said Zandamela.
In contrast to the oil sector, which is capital-intensive and does not require a large number of workers, these non-oil sectors are significantly more labour-intensive and many do not require a high level of skill, thus a significantly broader segment of Angola’s population is eligible for employment.
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Angola’s finance ministry suggests there has been significant diversification already.
