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The International Monetary Fund (IMF) has warned that Angola’s public debt is expected to reach its legal limit in the medium term.
Following an “Article IV” review, the IMF advised the government to utilise unexpected profits from high oil prices to reduce debt and strengthen financial buffers, especially as long-term oil production continues to fall.
Current high oil prices, driven by the conflict involving the U.S., Israel, and Iran, have provided Angola with a temporary fiscal boost and better access to international markets.
While the country’s 2026 budget was based on oil at $61 per barrel, Brent crude is now trading over $100.
However, the IMF stressed that this windfall only offers a short-term fix for the country’s rising financing needs and declining output.
To ensure future economic stability, the IMF recommended that Angola continue with fiscal consolidation and prioritise diversifying its economy away from oil.
Although Angola is not currently pursuing an IMF loan, it is utilising technical assistance for tax and expenditure reforms.
The nation is also looking for external funding from alternative sources, such as the African Development Bank.
