When asked about the impact of the increase in the price of crude oil, José de Lima Massano stressed that it was “too early to draw conclusions”, but stressed that the price “is approaching the average established for this year’s General State Budget (70 dollars), which means that the planned projects and programs should continue without the need, for now, to make adjustments”.
Lima Massano explained, on the sidelines of the 17th US-Africa Business Summit, which runs until Wednesday in Luanda, that the government had been preparing a scenario of containment, given the fall in the price of a barrel recorded in previous months, but the new context brings some room for maneuver.
“As I said, this is a preliminary stage (…) We had already been preparing a scenario to contain our spending, even to retain part of it, and this development makes us reflect again, especially on the expectation that by remaining, on average, within the levels we established in our budget for this year, we will be able to execute the main economic and social development programs for the year 2025”, he added.
The governor stressed that, despite the improvement in the context, he remains cautious in the management of public finances.
“What we have now is a path that will allow us to execute our budget without having to make cuts that could jeopardize the goals we had for 2025”, he said, reiterating that it is “very preliminary.”
In recent days, the price of a barrel of Brent — a reference for Angola — has exceeded 70 dollars, due to geopolitical instability in the Middle East and fears that Iran will close the Strait of Hormuz, as he admitted.
Massano stressed, however, that the trend must be assessed with caution.
“Now we have to give it some more time, but there is always the expectation, in the current price scenario, that we will be able to fulfill our agenda with greater ease,” he repeated.
The minister also reaffirmed Angola’s willingness to engage in dialogue with multilateral partners, such as the International Monetary Fund, to continue on the path of fiscal consolidation.
As for the World Bank’s $500 million financing for Angola, intended to support the State Budget and projects in various areas, including agriculture and youth employment, he indicated that “it is going to move forward.”
