BFA Asset Management CEO on Angola’s response to the COVID-19 crisis

As the COVID-19 pandemic continues to spread across the globe, countries are grappling with not only the health implications but also the economic repercussions of the crisis. Rui Oliveira, CEO of BFA Asset Management, shared insights on Angola's response to the outbreak and the potential economic impact it could have on the nation in an interview with CNBC Africa. Oliveira, who found himself unexpectedly in quarantine in Portugal due to travel restrictions, shed light on the current situation in Angola and the challenges facing the business community. Angola, like many other countries, initially seemed to underestimate the severity of the virus, with some individuals believing that life would continue as usual. However, as essential products started to become scarce and schools and businesses transitioned to remote work, the reality of the situation began to sink in. Oliveira highlighted the impact on Angola's Euro bond offering, noting that the current market conditions with fund managers flocking to cash made it a challenging time for the country to issue bonds. He emphasized the risks associated with a potential economic shock, including food shortages, business closures, and layoffs. Oliveira urged the government to consider delaying the Euro bond issuance to avoid high yields that could burden the country's finances. Additionally, he stressed the importance of taking proactive measures to prevent the spread of the virus and mitigate the economic fallout. With Angola facing a budget deficit and rising unemployment rates, Oliveira warned of the potential social consequences if adequate support is not provided to businesses and individuals affected by the crisis. The situation in Angola serves as a reminder of the complex challenges faced by developing countries during this global health emergency, requiring a delicate balance between public health interventions and economic stability.