Angola Eyes 2.8% Economic Growth Balancing a 2.5% Decline in Oil Production
The World Bank projects Angola’s economy to grow by 2.8% this year, a significant increase from last year’s 0.8%.
This growth is driven by the non-oil sector, which is balancing a 2.5% decline in oil production due to investment shortages and aging oil fields.
“Africa’s Pulse” report highlights Angola’s rapid recovery as among Sub-Saharan Africa’s fastest, aiming to reduce poverty and enhance growth.
This follows Niger, Senegal, and São Tomé and Príncipe.
“Africa’s Pulse” report notes weakening Sub-Saharan African currencies, with Angola‘s Kwanza depreciating notably by 60%.
This was partly due to the central bank’s decision to stop defending the currency amid falling oil prices and increasing debt payments.
World Bank projects Sub-Saharan Africa‘s economies to rebound, with 3.4% growth in 2024 and 3.8% in 2025.
This optimistic outlook is primarily based on rising private consumption, fueled by decreasing inflation and increasing household purchasing power.
However, the report raises concerns about high public debt levels in the region, which could hinder essential investments for economic development.
Despite a predicted decrease in the debt-to-GDP ratio from 61% in 2023 to 57% this year, many African countries face liquidity issues.
They are grappling with unsustainable debt or actively seeking debt restructuring.
The reliance on commercial financing and loans from non-Paris Club members, especially China, has led to soaring debt payments.
This has changed the traditional financial support landscape for African countries.
Despite a slight decrease from the peak interest rates in May 2023, external financing costs remain high.
For example, Kenya’s new Eurobonds issued in February have an annual interest rate of 9.75%, significantly higher than pre-pandemic levels.
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