THE Angolan government says it remains committed to subsidies removal but needs to balance reforms with the goal of diversifying the economy away from its heavy reliance on oil. This is coming amid criticism from the International Monetary Fund (IMF) over the subsidies.
Speaking on the issue yesterday in Washington D.C. on the sidelines of the ongoing International Monetary Fund (IMF)/World Bank annual meetings, the Angolan Minister of Finance Vera Daves, the first woman to head the Treasury of Africa’s second-largest oil producer, says the government has ended support for industries, including electricity and water, but would continue to provide fuel subsidies for agriculture and fishing for the time being.
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“We need to remove subsidies, that is right, but we also need to create conditions in sectors that are not as efficient as oil,” she adds. The IMF had in March, this year approved a $3.7 billion loan programme for Angola, has criticized the subsidies, saying they contradicted the government’s stated reform policy. The country has been working on economic diversification from oil to cushion the effect of price fluctuations.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.