WASHINGTON, April 17 – Angola is in talks with the African Development Bank for a $165 million budget support loan as it seeks to shield its economy from global shocks and manage rising debt costs.
Finance Minister Vera Daves de Sousa said the government is also exploring bilateral lending and international markets to raise the remaining portion of roughly $1 billion in external financing targeted for 2026.
The proposed AfDB loan remains under discussion and will require Angola to implement specific policy measures before it can be presented for approval.
While the country is benefiting from higher oil prices driven by the Middle East conflict, the gains are offset by significant fiscal pressures. Debt servicing currently consumes nearly half of Angola’s budget, prompting efforts to reduce borrowing costs and improve fiscal sustainability.
The government has opted not to pursue a lending program with the International Monetary Fund at this stage, instead relying on technical assistance to strengthen tax systems, review public spending and guide reforms.
Angola is also advancing alternative financing strategies. The World Bank recently approved a guarantee to support a debt-for-education swap aimed at funding new school infrastructure, with completion targeted by mid-year.
So far, Angola has secured $2.9 billion of its $3.8 billion external funding goal for the year. Authorities are reviewing revenue projections to determine whether additional borrowing will be necessary.
Economic growth is expected to remain around 4% in 2026, supported by expansion in the oil sector, even as other parts of the economy face pressure from global instability. Officials say any oil revenue windfall will be carefully deployed to support priority spending and protect vulnerable populations.
