African Development Bank approves $165 million loan for Angola
JOHANNESBURG - The African Development Bank Group has approved a $165 million loan to finance part of Angola’s three-year economic diversification support program intended to restore the country’s macroeconomic stability, it said on Wednesday.
Under its 2018-2022 national development plan, Angola is implementing reforms to diversify its oil-dependent economy. It has adopted measures to improve human and social development to restore fiscal balance after the economy was hit by a global slump in oil prices and repeated droughts.
African Development Bank (AfDB) director for governance and public financial management Abdoulaye Coulibaly said the loan would contribute significantly to the government’s stabilisation plan.
“For the past two years we have felt that the authorities are quite committed to make changes. Many concrete measures have been taken," Coulibaly said, adding that the country was on track to meet its benchmarks for 2019.
"We expect that the program will ultimately impact positively on macroeconomic stability, economic diversification and poverty reduction."
The reforms are expected to improve transparency at state-owned enterprises and reduce the need for subsidies, he added.
The AfDB called for the monitoring of Angola’s high public debt levels, estimated at about 90 percent of gross domestic product but projected to ease to around 60 percent by the end of the program.
The bank has previously provided support to Angola’s development efforts in agriculture, rural development and environment, health and education, water and sanitation, granting eight loans worth $122.4 million.
- African News Agency (ANA)