Angola’s currency, Kwanza, rises against the dollar as 2021 draws close. According to a report, this makes it the best annual performance for the third-biggest oil producer since 1999 when the Kwanza was introduced.
According to Angola’s Finance Ministry, the country’s economy will expand by 2.4% in 2022 compared to 0.2% in 2021. This will be achieved by increasing the price of crude oil, which accounts for 90% of the country’s export revenue.
Angola’s economy, which depends on oil for 90% of export revenue, is forecast to expand about 0.2% this year and 2.4% in 2022, due to higher crude prices, according to the Finance Ministry.
Angola’s Kwanza has strengthened by 15% due to the surging crude prices, credit rating upgrade and a focused and efficient Central bank.
According to the Secretary of State for Budget and Public Investments, Aia-Eza Gomes da Silva, the government is attempting to diversify the economy away from oil by increasing expenditure on education and health to increase jobs and improve the lives of everyday Angolans.
She said, “To generate wealth for the people, we need to expand more than the growth rate of the population. A growth rate of at least 3% per year would be desired”.
In light of this, the International Monetary Fund (IMF) applauded the country for changes to diversify the economy, thus, approving a $772 million disbursement in the late second quarter of the year.
Despite being the third-biggest oil producer in Africa, the people’s standard of living is less than $1.9 per day and has a 31% unemployment rate in the first quarter of the year.
In the late third quarter of the year, Angola’s credit rating was raised by Moody’s Investors Service for the first time, indicating improved governance and debt metrics. Angola’s Eurobonds yielded 12% this year, only second to Zambia.
Simon Quijano-Evans, the chief economist at Gemcorp Capital LLP, says, “If any country out there has deserved a rating upgrade, it is Angola. Rarely has one seen a country push ahead with reforms at the most difficult of times, helping secure future growth and stability”.