Luanda - The Angolan government remains committed to the gradual elimination of fuel subsidies, although it does not intend to eliminate them completely by 2025, Minister of State for Economic Coordination José de Lima Massano said Wednesday in Davos, Switzerland.
The minister, who is representing Angolan President João Lourenço at the 55th Annual Meeting of the World Economic Forum in the Swiss Confederation, spoke in an interview with the financial information agency Bloomberg.
Massano stressed the intention not to withdraw them completely this year, as this could create "unnecessary difficulties" for the country's citizens.
The minister also announced that the government intends to raise up to 2 billion US dollars in Eurobonds this year, as part of efforts to extend maturities and reduce debt costs.
"The government remains committed to the gradual elimination of fuel subsidies, although it does not intend to eliminate them completely by 2025, as this could create "unnecessary difficulties" for the country's citizens," Massano explained.
As for raising debt, the minister said that this year "the government will go to the markets to issue Eurobonds", stressing that "it won't be different from what we did before: one billion US dollars and it could go up to 2 billion US dollars".
For the Minister of State, the prices and maturities of the debt are critical so that there is no additional pressure on the public debt, adding that he expects inflation to continue its downward trend, allowing the country to access funds on increasingly favorable terms.
Angola recently signed two financing agreements with JPMorgan Chase & Co worth one billion US dollars, funds that will be used to finance the country's budget for 2025, including infrastructure projects to increase water and electricity supply as well as hospitals, according to José Massano, quoted by Bloomberg.
Asked if the government was preparing new financing agreements similar to the one signed with JPMorgan, the Minister of State said that Angola was "continuing to look for opportunities".
"We are trying to extend maturities as much as possible," said the head of the economic team, stressing that the country is following the International Monetary Fund's (IMF) guidelines in terms of resource management, but is not considering another financing program with the Fund at this time.
"We continue to look for ways to remove bottlenecks in the economy so that businesses can continue to grow. That's why we hope that 2025 will be another good year," Massano stressed.
Regarding privatizations, the State Minister said that in the coming months the telecommunications company UNITEL will be privatized, part of which will be done through the stock exchange.
The government will also sell stakes in Banco de Fomento Angola (BFA), the second largest bank, and the local unit of Standard Bank Ltd.
The three companies are among the largest of nearly 200 state institutions and assets that the government initially earmarked for sale in 2019 to raise money and diversify the economy beyond oil.
According to the minister, more than half of these companies have already been privatized.
"We decided to launch a massive program of privatization of state companies. It's happening," the minister said.
Participation in the Davos Economic Forum
The Minister of State has carried out an intense activity focused on bilateral contacts with political decision-makers, investors and business leaders, among others, with the aim of exploring and promoting public-private partnerships to mobilize resources for the country's economic development.
Massano participated in the workshop on "Investing in Critical Mineral Value Chains", where he advocated the importance of sustainable and inclusive exploitation of strategic mineral resources and public-private partnerships.
He met with CEOs and representatives from Trafigura, Citigroup, De Beers, Standard Chartered Bank, Menzies Aviation, JP Morgan and the Africa Finance Corporation (AFC).
José de Lima Massano also met with the Portuguese Minister of Economy, the Vice President of the African Development Bank, the Presidents of the Africa Finance Corporation and Afriximbank, the Governor of the South African Reserve Bank, and the former Prime Minister of the United Kingdom, Tony Blair, who is now President of the Institute for Global Change.
On Wednesday, he also attended the Friends of the African Continental Free Trade Area (AFCFTA) Forum, which aims to promote the implementation of the AFCFTA through public-private partnerships.
The Forum is a dynamic platform for a visionary dialogue on digital trade and the critical role of the private sector in advancing the implementation of the AFCTA Digital Trade Protocol, which was adopted by African Union Heads of State and Government in January 2024. VC/AMP
