IMF Urges Angola to Sustain Fiscal Reforms as Oil Risks Threaten Economic Stability

Angola needs to maintain fiscal consolidation, prudent monetary policy and exchange-rate flexibility to preserve macroeconomic stability amid risks including oil price volatility and tighter external financing conditions, the International Monetary Fund (IMF) said.

The assessment followed an IMF Post-Financing Assessment mission led by Mika Saito, which held discussions with Angolan authorities and stakeholders in Luanda and virtually from August 24 to September 9.

The mission met with representatives of the government, the National Bank of Angola, Parliament, civil society, the private and financial sectors, and development partners, according to the IMF.

The Fund noted that a favorable external environment had helped strengthen Angola’s external position, support non-oil economic activity, improve market access and reduce inflation.

However, the IMF cautioned that these conditions had slowed the pace of macroeconomic adjustment and reform momentum needed to reduce the country’s dependence on oil and address economic vulnerabilities.

“The outlook remains subject to downside risks, including oil price volatility, tighter external financing conditions, and delays in fiscal consolidation and reform implementation,” Saito said in the statement issued at the conclusion of the mission.

The IMF affirmed that preserving the gains achieved in macroeconomic stability and productivity in the non-oil sector would require Angola to pursue fiscal consolidation, maintain prudent monetary policy and allow greater exchange-rate flexibility.

It urged the country to advance structural reforms aimed at improving the business environment, strengthening governance, attracting foreign investment and diversifying the economy to support sustainable growth.

Angola’s economy remains highly exposed to fluctuations in oil prices, making diversification of economic activity and the expansion of the non-oil sector key priorities for reducing vulnerabilities.

The IMF said Angola’s 2026 Post-Financing Assessment is expected to be discussed by the Fund’s Executive Board in November.

A Post-Financing Assessment applies to countries with outstanding IMF credit above specified thresholds that do not have an IMF-supported or staff-monitored programme. It assesses economic policies, the sustainability of the country’s macroeconomic framework and its capacity to repay the Fund.