Angola’s Economy & Planning Minister on reforms, inflation & growth outlook

Angola, the second-largest oil producer in Africa, has been on a journey of economic recovery after five years of recession. The country's economy, which relied heavily on imports, has undergone significant reforms to boost local production and reduce dependency on foreign goods. The Minister of Economy and Planning, Mario Augusto Caetano Joao, highlighted the key strategies that have contributed to Angola's economic turnaround. One of the pivotal reforms was the collaboration with the International Monetary Fund (IMF) to implement a flexible exchange rate system, allowing the Angolan currency, the kwanza, to appreciate. This shift led to increased investments in sectors like agribusiness, agriculture, fisheries, and transportation, paving the way for diversification and reduced reliance on oil. Despite progress, the Minister emphasized the need for further development and independence in local production to unlock the country's full economic potential. As the global economy faces challenges such as the war in Ukraine, COVID-19 lockdowns, and trade disruptions, Angola has proactively positioned itself to mitigate the impact of macroeconomic and geopolitical issues. The establishment of a food strategic reserve has played a crucial role in stabilizing food prices and combating inflation. By importing essential food commodities and implementing monetary measures, Angola has managed to curb inflation rates and steer the economy towards a positive trajectory. The government's focus on supporting local food production through the national development bank reflects a commitment to sustainable growth and resilience amidst external uncertainties. Looking ahead, Angola remains vigilant in its approach to address ongoing economic challenges. With a sharp focus on enhancing local production, seizing market opportunities, and leveraging strategic reserves, the government aims to sustain economic growth and shield the country from external shocks. The country's ability to navigate complex global dynamics while bolstering domestic industries underscores its determination to secure a stable and prosperous future for its citizens.