Angola plans to issue US$4 billion in debt to finance its 2025 budget. This includes US$1 billion in Japanese sovereign debt and US$3 billion in Eurobonds. Finance Minister Vera Daves de Sousa is presenting Angola’s macroeconomic status to US investors while highlighting the nation’s efforts to improve its fiscal balance and manage debt servicing costs.
Angola plans to issue up to US$4 billion in debt to finance its 2025 General State Budget, according to Ver Angola. The strategy includes issuing sovereign debt instruments in the Japanese market for up to US$1 billion and up to US$3 billion in Eurobonds, foreign currency debt securities typically pegged to US dollars. The aim is to balance the budget and extend the maturities of existing debt to lower servicing costs.
Finance Minister Vera Daves de Sousa is currently leading a four-day non-deal roadshow in the United States, including stops in Boston and New York, to update investors on Angola’s macroeconomic indicators. This initiative is part of a broader strategy coordinated with the Debt Management Unit of the Ministry of Finance. The roadshow began with the Annual Debt Plan presentation and also included visits to Middle Eastern countries to attract investment.
Although Angola has successfully reduced its debt-to-GDP ratio, it still allocates more than a quarter of its revenue to servicing interest on debt, as per the United Nations’ World Economic Situation and Prospects for 2025 report. The report highlights the pressing fiscal challenges facing Africa, where the increasing debt burden limits funding for essential services such as education and health.
José de Lima Massano, the Minister of State and Economic Coordination, acknowledged Angola’s ongoing challenges regarding debt repayments but pointed out the recent reduction in the debt-to-GDP ratio. He noted the country’s economic growth of over 4% in the previous year and the expectation to maintain a similar performance in 2025 while adhering to International Monetary Fund (IMF) guidelines, indicating no need for additional financing programs.
In summary, Angola aims to issue up to US$4 billion in debt to support its 2025 budget while managing existing debt effectively. Despite previous reductions in its debt-to-GDP ratio, the country continues to face significant challenges in servicing its public debt, which impacts vital public services. Nonetheless, government officials express optimism about the economic outlook, aiming to sustain growth and fiscal discipline without further IMF assistance.
Original Source: macaonews.org
