It is a huge sum that Angola will receive in relation to its GDP estimated at a little more than 94 billion dollars in 2019 by the World Bank. The International Monetary Fund announced on Wednesday the immediate granting of an additional billion dollars to this southern African country to help it overcome the crisis caused by the Covid-19 pandemic.
The IMF continues to help countries fight #COVID19. Our Board’s approval of U$1b in new emergency financing, plus an increase of US$765m in the current Extended Fund Facility will help #Angola and its people deal with the pandemic and related shocks. https://t.co/lNSvRQFSqy pic.twitter.com/t37ceY03qU
– Kristalina Georgieva (@KGeorgieva) September 16, 2020
“The Angolan economy has been affected by a multifaceted shock,” said the institution in a press release, citing the health crisis and the drop in oil prices, the country’s crucial resource. This new disbursement, made within the framework of the IMF’s extended credit facility, brings aid disbursed to this country to $ 2.5 billion since the signing of an agreement in December 2018. This three-year agreement provided for aid up to $ 3.7 billion, depending on the exchange rate at the time.
The Fund calls for further reforms
The IMF believes that the Angolan authorities have adopted “in time measures to meet the challenges arising from the shock” caused by the pandemic. They are also “firmly attached to the economic program under the extended facility of the fund, with an overall satisfactory implementation”, considers the institution after a third review of the Angolan economy.
However, “the pursuit of structural reforms is essential to diversify the economy and lay the foundations for economic growth driven by the private sector,” responded Antoinette Sayeh, Deputy Director General of the Fund. The government should therefore “remain determined to improve the business environment, strengthen governance and fight corruption,” she also stressed.