The Finance Ministry’s draft budget released on Friday showed that 32.9% of total expenditure, $11.95 billion, will be directed toward loan repayments, while 13%, or $4.6 billion, will cover interest payments. Together, debt servicing will absorb about 45.9% of total expenditure.
Angola anticipates net borrowing of $7.7 billion from local sources compared to $1.8 billion from external creditors in 2026, reflecting a broader trend among frontier markets to rely on domestic financing as access to foreign currency is often more pricey and risky.
Luanda’s budget deficit is seen at 2.8% of gross domestic product, down from an estimated 3.3% in 2025.
Sub-Saharan Africa’s second-biggest crude oil producer, which seeks to contain costs due to volatile oil prices, said it would cut total expenditure by 4.7% to $36 billion. Its draft budget assumes a crude oil price of $61 per barrel, while Brent crude futures were trading near $65 on Friday.
Economic growth is expected to accelerate to 4.2% in 2026, up from 3% in 2025.
–Reuters–
