Angola plans to raise external funding

A worker counts 500 denomination kwanza currency banknotes in an office in Luanda, Angola

The Angolan government plans to raise USD10 billion to build infrastructure that it considers essential, including a new oil refinery, the Angolan Economy minister told the Financial Times.
“There are projects that have been delayed, others have not yet begun and there are some in progress that will be delayed,” said Abraão Gourgel in an interview with the newspaper, adding that taking into account that most of the infrastructure projects were being funded foreign credit lines the impact will be reduced.
In order to obtain the necessary funds for construction of infrastructure, including a new refinery that will cost US$6 billion, the Economy Minister announced that the government later this year would issue Eurobonds worth between US$1 billion and US$1.5 billion.
The World Bank is also putting together a loan of US$500 million, the first of its kind for Angola, with Gourgel saying that credit lines with several countries, such as Brazil, China and Spain, may be increased.
Overall, the government of Angola wants to raise US$15.2 billion by issuing debt in the domestic market and US$10 billion in foreign markets.
Angola’s economy, which depends on exports of oil and diamonds, has been suffering the effects of the drop in the price of oil, and the national currency, the kwanza, suffered a sharp devaluation, and is currently worth 110 kwanzas per US dollar.
In the interview, the Angolan minister said the fall in oil prices would be an incentive for Angola to diversify its economy. MDT/Macauhub