Angola Finance Minister Vera Daves on achieving sustainable growth

Angola's Finance Minister, Vera Daves de Sousa, recently shared insights on fostering sustainable development and growth during the World Economic Forum in Davos, Switzerland. In a conversation with CNBC Africa's Fifi Peters, Minister Daves highlighted the complex task of balancing inflation control with economic growth, particularly in the context of Angola's high inflation rate, which has hit the high 20 percent mark. Minister Daves emphasized the importance of creating an environment conducive to liquidity access for businesses while also addressing inflationary pressures. She acknowledged the need for coordination between fiscal and monetary policy to maintain stability. Minister Daves underscored the significance of structural measures to reduce imported inflation by promoting domestic production and decreasing reliance on imports. For Angola, this entails strengthening the non-oil sector, which is expected to be the primary driver of economic growth, with a projected GDP growth of 2.8% for 2024. While the oil sector remains crucial for foreign exchange earnings, efforts are underway to diversify the economy and create more job opportunities. In response to Angola's recent decision to exit OPEC, Minister Daves noted the government's considerations regarding oil production quotas and the potential impacts on fiscal targets. Despite not directly participating in the decision-making process, Minister Daves reiterated the importance of aligning economic strategies to navigate the evolving energy landscape.