Angola’s public debt-to-GDP ratio is now estimated at approximately 58 billion U.S. dollars, reflecting a continued and positive downward trend aimed at ensuring the sustainability of the country’s public finances.
According to Dorivaldo Teixeira, Director of the Public Debt Management Unit, by the end of 2024 Angola’s debt stood at around USD 60 billion, but has been declining in recent months to less than 60% of GDP, thanks to measures implemented by the Angolan government.
Speaking to the press on the sidelines of the 4th International Conference on Financing for Development (FFD4), held in Seville, Spain, the official explained that the current figure includes domestic debt, which is estimated at about USD 11 billion, and external debt, which represents the larger portion of the total.
Dorivaldo Teixeira emphasized that the continued downward trend in public debt is a key factor for attracting new investors to the country.
He noted that over the past three to four years, the government has been prepaying debt and implementing a set of fiscal measures to reduce the budgetary burden created by debt servicing.
For instance, he mentioned debt refinancing operations, the buyback of eurobonds in 2022, and efforts to consolidate Angola’s capital market as fundamental strategies contributing to the reduction of the country’s liabilities.
“These operations, especially in the capital market, will create conditions for the state to raise more funds domestically, and at more competitive rates,” he highlighted.
He added that Angola’s early external debt repayments help reduce future debt burdens.
According to the director, Angola has maintained a positive debt-reduction trajectory, averaging a reduction of about USD 2 billion per year.
He recalled that in 2022, Angola’s debt stood at at least USD 72 billion, a figure that has now been brought down to under USD 60 billion.
Teixeira also announced that the Finance Ministry will soon release more updated debt data.
“We are working to continue implementing measures that will allow the domestic market to gain more space compared to the external one,” he added.
On a continental level, Dorivaldo Teixeira acknowledged that the burden of debt on national budgets remains “very high,” stressing the need for joint efforts among countries to find solutions that create balance.
He also underlined the importance of investing in education and health, to create conditions for greater autonomy and for countries to fully exploit growth opportunities, particularly in the African region.
The 4th International Conference on Financing for Development, organized by the United Nations, wraps up this Thursday, July 3, in Seville, Spain, after starting on June 30.
The event brings together global leaders to discuss and advance financing strategies for achieving the Sustainable Development Goals (SDGs).
Source: Angop
