"A three percent growth in the Gross Domestic Product (GDP) in Angola is not enough for what is needed, which is socially friendly growth, we need to put even more effort into what are the factors that can leverage economic growth so that we can to have growth above the average for population growth," said Vera Daves de Sousa, speaking to journalists, on the sidelines of her participation in the second 'Public Finance Meetings - Building Strong and Inclusive Institutions', which run until Friday in Lisbon.
The International Monetary Fund forecasts growth of 3.5 percent this year and 3.7 percent in 2024, while the Government forecasts GDP growth of around 3.3 percent in 2023.
In statements to journalists, the Minister of Finance recalled the "several macroeconomic imbalances at various levels, with negative growth for several years, a deficit current account, consecutive global deficits, a ratio of debt to GDP at historically high levels and a set of of distortions" that hampered economic development, and highlighted the main measures it took to deal with these imbalances.
"We have implemented a set of measures on the revenue side, on the expenditure side and on the debt side, to improve tax collection, improve public procurement and implement electronic public procurement, and we have also sought to start a privatization program to reduce potential liabilities contingents with companies that are either not profitable or below their potential", concluded the minister.
Regarding the debt, Vera Daves de Sousa said that she stopped using oil as collateral for loans due to the high cost and significantly reduced commercial financing: "Now that we practically no longer sign loans with oil as collateral, we always ask that you come with coverage of an export credit agency, which helps to lengthen maturities and lower interest rates, and we are betting on concessional or semi-concessional financing", said the minister.
Angola is expected to reach 2025 with a debt-to-GDP ratio below 60 percent, anticipating the target set for that year: "We will certainly reach that target ahead of time, but for that to happen we need to manage the mountain of priorities we have from the point of view of project implementation, there is a lot to do in Angola, let's be honest, there are roads, bridges, so we have this equation of dealing with infrastructure challenges and protecting the sustainability of public finances".
The meeting began this Thursday morning with a speech by the Minister of Finance on the theme “Public Finance Reform - the recent path and the great challenges in Angola”.
On Friday, it will be the turn of the former finance minister of Cape Verde, Cristina Duarte, to address the theme “Which ways to align public policies with the transformation of the continent?”, before the deputy prime minister and minister Cape Verdean Minister of Finance, Olavo Correia, to present "Public Expenditure and Social and Financial Responsibility: the case of Cape Verde".
In addition to the former rulers, the president of the Portuguese Court of Auditors, José Tavares, several Portuguese-speaking MPs and the president of Orango Investment Corporation, Guinean Paulo Gomes, will speak at the forum, which ends on Friday.
