Washington - Angola has been taking part in the annual meetings of the World Bank (WB) and the International Monetary Fund (IMF), started on Monday in Washington (US).
Angola is represented by ministers of Finance Vera Daves, of Economy and Planning Mário Caetano João, and the governor of the National Bank of Angola (BNA) José de Lima Massano.
In its agenda, Angola is expected to address the diversification of the economy as well as the projects conducted by the Executive meant to persuade these “Bretton Woods” institutions to finance infrastructure projects and the anchor programmes of the Government and the private sector.
At the events, which include business forums, the country will also present a set of ongoing reforms and plans that are being implemented to ensure the diversification of the economy.
The reforms and plans involves promoting national production, improving the business environment and developing human capital.
Meetings feature those on statutory such as the meetings of the Development Committee and the IMF Committee and the Ministerial Constitutions of the IMF and WB, to which Angola belongs.
Complementary high-level meetings are also planned, like the round table on "Building resilience and closing the gaps in fertilizer access and use in Africa" and the "Meeting of the working group on the global financial architecture".
From the 10th to the 16th of the current month, the participants will address subjects focused on the direction in which the world should go, given the current challenges and opportunities of the post-Covid-19 pandemic.
Expectations regarding the role of the World Bank Group, alongside other multilateral development institutions, will also be discussed at a round table.
On December 22, 2021, the IMF’s Board of Directors (CA) concluded the sixth and final review of the Extended Fund Facility (EFF) for Angola, which started in December 2018.
As in previous assessments, in this last one, once again, the IMF Board of Directors praised the Angolan Executive for its firm position in relation to the ongoing reforms in the country and for the appropriate policies it has taken to face the negative shocks caused by Covid -19.
In particular, the IMF praised the prudent fiscal adjustment carried out by the Executive throughout the duration of the Programme, which involved gains in non-oil tax revenues and the reduction of non-essential expenditures, while preserving the spending on essential expenditures such as health, education and other areas of the social sector.
The IMF also highlights Angola's discipline in the conduct of fiscal policy, which has already allowed, in 2021, a significant reduction in the ratio of public debt in relation to Gross Domestic Product.
This downward trend in public debt in relation to GDP will continue in the coming years, in order to free up the resources previously allocated to debt repayment for the country's true development.
In July of this, also in Washington DC, Angola, ratified the Convention of Adhesion to the International Center for Settlement of Investment Disputes (ICSID).
The invitation to join came in 2019, from the director-general of the institute, Gonzales Flores, who met with the Angolan Diplomatic Mission in Washington DC and invited the country to become a member.
Created in 1966, ICSID, the only WB institution to which Angola is not yet a member, is one of five WB organisations (along with the International Bank for Reconstruction and Development (BIRD), the International Development Association (IDA), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
Each organisation fulfills a different function, but all promote the common goals of reducing extreme poverty and increasing the sharing of prosperity.
The ICSID contributes to these objectives by providing an impartial forum for the resolution of international disputes.
As a member, the Angolan State will be able to participate in the governance of the ICSID through representation on the Administrative Council, propose amendments to the Convention and the rules, as well as develop “expertise” in resolving disputes on international investments.
Members also have access to specialised dispute settlement on international investments in accordance with the ICSID Convention and the Additional Mechanism Rules.
Only a State that has signed the Convention is eligible to deposit an instrument of ratification, acceptance or adoption.
