IMF concludes Angola post financing assessment

Africa's second biggest crude oil producer, Angola, has recently been under the spotlight as the International Monetary Fund (IMF) concluded its post financing assessment of the country. Victor Lledó, Senior Economist at the IMF and the Resident Representative for Angola, joined CNBC Africa to discuss the assessment findings. The IMF report indicated that Angola's capacity to repay the fund is adequate, despite elevated risks associated with the country's economic situation. Lledó highlighted the importance of Angola's ability to generate foreign exchange earnings and mobilize revenue to meet its financial obligations. The assessment appeared to be comfortable and resilient to shocks, primarily stemming from the nation's high dependence on oil exports and the volatility in international oil prices. One key concern highlighted was the large fiscal slippage observed in 2022. Lledó recommended measures to address this issue, including the removal of fuel subsidies and reforms to enhance domestic revenue mobilization in non-oil sectors. Additionally, the IMF emphasized the importance of economic diversification to reduce reliance on oil exports and promote sustainable growth. The government's efforts in privatization and the utilization of stock markets to drive economic reforms were recognized positively by the IMF. However, Lledó emphasized the need for continued transparency and efficiency in the privatization process to maximize its benefits. Overall, the IMF's assessment provided valuable insights into Angola's economic challenges and outlined key recommendations to promote financial stability and sustainable growth in the country.