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Angola’s Oil-Backed Debt Reduced to USD 7.7 Billion

Luanda: Angola's oil-backed debt has decreased to 7.7 billion US dollars in recent years, reflecting a different outlook for public debt compared to 2020, when it was 16.3 billion US dollars, announced the Secretary of State for Finance Ottoniel dos Santos on Tuesday in Luanda.

According to Angola Press News Agency, speaking at the presentation of the 2026-2028 Debt Strategy and the 2026 Annual Debt Plan, the official highlighted the exposure to exchange rate risk in the domestic market, limited to approximately 26.7% of the stock. He said these improvements were achieved as a result of technical rigor, fiscal discipline and difficult choices, which reflect the collective effort of the Angolan State.

Ottoniel dos Santos added that the result is also a product of the trust and support of financial institutions and development partners, including multilateral agencies, along with the active and prudent management of debt, focused on medium- and long-term sustainability. In 2020, he recalled, the landscape of Angola's public debt presented particularly challenging characteristics, notably the debt-to-GDP ratio of around 69%, a high concentration of debt collateralized with oil, and significant exposure of domestic debt to exchange rate risk, which represented about 47% of the total portfolio.

For this year, the Secretary of State said, the challenge is to reduce the high level of projected debt service, estimated at around 15.1 trillion kwanzas. "In terms of the debt profile, this is potentially the last major hurdle to overcome," he acknowledged.

The Secretary of State also said that it is up to the State, the financial sector, partners and other operators to ensure that public debt continues to be an instrument at the service of macroeconomic stability, sustainable financing, public investment and the creation of conditions for the flourishing of the private sector, with positive impacts on employment and the well-being of Angolan families. Currently, Angola only has oil-backed debt to China, while the others are outside this model.