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Country Debt Guide 12
Country Debt Guide 13 Angola Debt History Due to Angola’s high dependence on oil production and exports (see below), GDP growth has generally reflected the movement in oil prices, with annual GDP growth averaging 7.8% over the past two decades. However, since 2016 Angola has suffered annual recessions and 15 is only forecast to return to growth in 2021. ANGOLA IN 2021 2.6% economic growth 107.5% public debt to GDP ratio -0.13% budget balance 3 / 8 DR’s Debt Transparency Index The country’s undiversified economy, along with the legacy of a prolonged civil war that only ended in the early 2000s, created problems with debt accumulation, with public debt as high as 220% of GDP in 1995. Although Angola was not invited to take part in multilateral debt relief initiatives, it did benefit from a small cancellation by 16 China, and the country gradually decreased public debt during the mid-noughties. Angola’s public debt to GDP ratio has increased substantially over the past decade, breaching 100% of GDP in 2019, the highest rate in Africa and among the ten highest in the world. The major cause of the growing debt to GDP ratio has not been increasing debt itself, but instead the decreasing size of the economy, which is forecast to shrink by a further 1.4% in 2020. The COVID-19 pandemic is leading to a further deterioration of government finances with the debt to GDP ratio forecast to peak at 120% by the end of 2020. $14.5 million Chinese debt relief Not Part of HIPC Initiative In 2019, the government introduced a three-year Medium- Term Debt Management Strategy, which included new tax measures, spending cuts, and privatization of state-owned companies, to strengthen government finances and ensure debt remained sustainable. The effects were noticeable, with the government running a fiscal surplus – where government revenues exceed expenditure - for two consecutive years. It is also worth noting that Angola’s score in the Debt Transparency Index this report has compiled is amongst the lowest, with no publication of government contracts, no effective freedom of information rules, and a highly limited amount of data available on government websites or data portals. As Angola’s debt has risen, so has the cost of servicing it; in 2010 interest payments were equivalent to 3.8% of total government expenditure, yet by 2017 they equated to 11.4%. For comparison, only 5.4% of government expenditure is allocated to health spending: for every Angolan Kwanza the government spends on health care, two Kwanza are given to creditors to pay the interest on its debt. This could represent a significant opportunity cost IF the projects paid for by the debt are not helping Angolans raise their standards of living. The types of projects Angola has initiated with loans from China and the World Bank are shown below, as a means of illustration.
Page 1: Continent Overview
Page 5 and 6: Country Debt Guide 15 Angola Figure
Page 7 and 8: Country Debt Guide 17
Page 9 and 10: Country Debt Guide 19 Cabo Verde Ch
Page 13 and 14: Country Debt Guide 23 Cameroon Chin
Page 15 and 16: Country Debt Guide 25 Cameroon To h
Page 17 and 18: Country Debt Guide 27 Republic of C
Page 19 and 20: Country Debt Guide 29 Republic of C
Page 21 and 22: Country Debt Guide 31 djibouti Debt
Page 23 and 24: Country Debt Guide 33 djibouti Curr
Page 25 and 26: Country Debt Guide 35 Egypt Debt Hi
Page 27 and 28: Country Debt Guide 37 Egypt This re
Page 29 and 30: Country Debt Guide 39 ethiopia Debt
Page 31 and 32: Country Debt Guide 41 ethiopia Curr
Page 35 and 36: Country Debt Guide 45 ghana However
Page 37 and 38: Country Debt Guide 47 ghana Further
Page 39 and 40: Country Debt Guide 49 Kenya Debt Hi
Page 41 and 42: Country Debt Guide 51 Kenya Current

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