Luanda, June 23, 2025 (Lusa) - Angola's minister for economic coordination acknowledged on Monday that rising oil prices on international markets are easing pressure on the country’s accounts, allowing it to maintain the main projects in the general state budget.
Journalists asked José de Lima Massano about the impact of higher crude oil prices, and he stressed that it was “too early to draw conclusions,” but he pointed out that the price “is approaching the average established for this year’s General State Budget ($70) which means that the planned projects and programmes should continue without the need for adjustments for now.”
Lima Massano explained, on the sidelines of the 17th US-Africa Business Summit, which is taking place until Wednesday in Luanda, that the government had been preparing a scenario of restraint, given the fall in oil prices in previous months, but that the new context provides some room for manoeuvre.
“As I say, it is a preliminary moment (...) We had already been preparing a scenario for containing our expenditure, even if only part of it. This development makes us reflect again, especially on the expectation that, if we remain, on average, within the levels we set in our budget for this year, we will be able to implement the main economic and social development programmes for 2025,” he said.
The minister stressed that, despite the improved context, he remains cautious in managing public finances.
“What we have now is a path that will allow us to execute our budget while maintaining the cuts that could jeopardise the goals we had set for 2025,” he said, reiterating that it is “very preliminary.”
In recent days, the price of Brent crude oil, the benchmark for Angola, has exceeded $70 per barrel, a level driven by geopolitical instability in the Middle East and concerns that Iran will close the Strait of Hormuz, as it has previously acknowledged.
Massano stressed, however, that analysts should assess the trend with caution.
“Now we have to give it some more time, but there is always the expectation, in the current price scenario, that we will be able to fulfil our agenda with greater peace of mind,” he repeated.
The minister also reaffirmed Angola’s willingness to engage in dialogue with multilateral partners, such as the International Monetary Fund, to continue on the path of fiscal consolidation.
As for the $500 million in financing from the World Bank for Angola, intended to support the General State Budget and projects in various areas, including agriculture and youth employment, he indicated that “it is to move forward.”
RCR/ADB // ADB.
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