Angola targets global investors with $18.6bn local bond market opening

Angola is moving to open its $18.6 billion domestic government bond market more widely to international investors as the oil producer seeks new sources of funding and deeper participation in its local capital market.

Vera Daves de Sousa, the finance minister, said the government was in talks with JPMorgan over possible inclusion in a new frontier market local currency debt index being developed by the US bank.

The government also plans to meet international investors in Luanda later this month as it considers how to make it easier for foreign investors to buy and trade Angolan government securities.

Read also: Angola economy grows 8.74% as non-oil sector drives strongest expansion in four years

“We want to see if we can gain scale, but for that to happen we need to have a clear channel,” Daves de Sousa told Reuters on the sidelines of an investor conference in London.

Angola’s domestic government debt stood at 17 trillion kwanzas, or about $18.6 billion, at the end of 2025, according to Finance Ministry data. The market is relatively small compared with other African economies. Kenya, whose economy is of a similar size, had almost three times as much domestic government debt outstanding.

Foreign investors can already buy Angolan government securities, but they currently need central bank approval and local banking arrangements. The requirements have limited the participation of international portfolio investors.

A wider opening could give Luanda access to a larger pool of global investors and reduce its reliance on dollar-denominated borrowing. It could also help deepen the local debt market and, over time, lower the government’s borrowing costs.

“We are in a close dialogue regarding how we can better explore the potential that the local bond market has for the investors,” Daves de Sousa said.

The talks come as JPMorgan develops a frontier market local currency debt index expected to include countries such as Nigeria and Kenya. Inclusion in a widely followed benchmark could raise the profile of Angolan government bonds among international fund managers and make it easier for investors to assess the market.

Read also: How to participate in Dangote’s IPO: Step by step guide

Angola considers 2027 international bond

The move to attract foreign investors into the domestic market comes as Angola also considers returning to international capital markets in 2027.

Daves de Sousa said the government could issue new bonds next year and was considering currencies other than the US dollar, including the Chinese yuan.

“If we see the market’s condition there in 2027, we will be more than keen to step in,” she said.

The government is also seeking to widen its tax base, although reducing public spending has proved more difficult. Authorities are prioritising spending on electricity generation and transmission, water and transport infrastructure to support economic growth.

Angola expects its debt position to improve, with the government projecting its debt to GDP ratio, including debt held by state owned enterprises, to fall to 48 percent by the end of 2027 from 54 percent at the end of the second quarter.

The government is also considering a debt-for-nutrition swap with UNICEF, although discussions are still at an early stage.

Fuel subsidies remain

On fuel prices, Daves de Sousa said the immediate priority was maintaining adequate supplies while expanding cash transfers to protect vulnerable households.

Angola is unlikely to remove fuel subsidies within the next year, she said.

Read also: Meet the deal makers behind Dangote Refinery’s historic IPO

The government is also expected to raise its oil price assumption for the 2027 budget from the current $61 per barrel, while maintaining a cautious approach to its forecasts.

Oil remains central to Angola’s public finances despite efforts to diversify the economy. Oil revenue is expected to overtake non oil revenue again in 2027 after non-oil revenue is projected to lead temporarily in 2026.

The government is targeting oil production of more than one million barrels per day. Output averaged 1.04 million barrels per day at the end of the second quarter, although Daves de Sousa expects 2027 production to be slightly lower.

For Luanda, opening the domestic bond market more widely to international investors is part of a broader effort to diversify government funding and strengthen the financial system while giving global investors greater access to one of Africa’s largest oil producing economies.