Angola's aggressive reform agenda aims to unlock financial sector

Angola, a country with a youthful population and a burgeoning privatization agenda, is on the path to becoming a key economic powerhouse in Africa. CNBC Africa recently sat down for an exclusive interview with Angola's Finance Minister, Vera Esperança dos Santos Daves de Sousa, to discuss the country's aggressive reform agenda and its impact on the financial sector. During the interview, Minister Vera Esperança dos Santos Daves de Sousa highlighted the importance of ongoing reforms within Multilateral Development Banks (MDBs) to enhance project disbursement processes and ensure value addition at the local level. She emphasized the need for African countries to demonstrate commitment to internal reforms and take proactive steps to attract funding from international partners. Addressing the issue of debt restructuring, Minister Vera Esperança dos Santos Daves de Sousa pointed out Angola's significant progress in reducing its debt-to-GDP ratio from 130 percent in 2020 to around 66 percent presently. The country has undertaken liability management measures, including issuing Eurobonds and securing new financing lines on more concessional terms, to strengthen its financial position. Angola's reform agenda has already made significant strides, with the liberalization of the forex market, implementation of Value-Added Tax (VAT), and restructuring of State-Owned Enterprises (SOEs) among the key milestones. A total of 92 companies and assets have been privatized, with plans to privatize an additional 73 entities by 2026. Looking ahead, Angola is exploring opportunities for dual listings of assets on international stock exchanges to attract more liquidity. While discussions with the London Stock Exchange are underway, decisions on potential listings remain pending. The country is also grappling with the challenge of phasing out fuel subsidies, a task that requires careful consideration of mitigation measures. Minister Vera Esperança dos Santos Daves de Sousa underscored the importance of leveraging Angola's youthful population and abundant natural resources to attract foreign investment. She invited the private sector to collaborate in building a new Angola, emphasizing the country's vast opportunities in sectors such as agribusiness, tourism, fisheries, and services. In a bid to enhance investor confidence, Angola has made significant regulatory changes, particularly in easing capital repatriation processes. Previously, companies faced challenges in repatriating dividends and capital out of the country. However, recent amendments have streamlined the process, eliminating the need for central bank licenses and expediting fund transfers through commercial banks. Overall, Angola's aggressive reform agenda and proactive approach to economic restructuring are positioning the country as an attractive destination for foreign capital. With a focus on sustainable growth and partnership with the private sector, Angola is poised to unlock its full economic potential and emerge as a key player in the global economy.