Dorivaldo Teixeira, who spoke at the presentation of the Annual Debt Plan (BPAE) report for the first half of 2025, said that the government has been reducing its debt to China, especially that collateralized with oil (loans in which oil is used as collateral for repayment).
"Two years ago, we had around ten billion dollars. Currently, at the end of the first half, we are at around 8.9 billion dollars. Our outlook is that this debt will probably reach the threshold of 7.5 billion dollars by the end of the year," he said.
In the first half of 2025, Angolan government debt reached 61.9 billion dollars, of which 16.7 billion dollars is domestic debt and 45.2 billion dollars is external debt.
Regarding external debt service, Dorivaldo Teixeira emphasized that execution is within parameters, currently at the threshold of five billion dollars, "in line with the schedule."
The executive emphasized that, given the level of economic uncertainty, Angola has seen its ability to access external financing limited, which is primarily used to cover the execution of already financed projects.
"To execute the State Budget, we have been relying primarily on domestic financing," he emphasized.
From the perspective of external debt, there has been a continuous decline, a space that has been largely taken up by domestic debt, 99 percent of which is at a fixed rate, Dorivaldo Teixeira added.
"The need for us to use more domestic debt to meet the financing needs of state activities is also a goal from the perspective of the medium and long-term strategy. We intend to create conditions so that the Angolan state can finance itself more internally than externally, [but] we will always need external debt," he said.
According to Dorivaldo Teixeira, the debt "stock" has been decreasing by 2 billion dollars annually since 2022.
Given the volatility of oil prices, the State always adopts "a cautious stance," said Dorivaldo Teixeira, adding that oil price behavior has been monitored and scenarios designed to allow for a response, essentially rationalizing spending.
According to the executive, in a context of greater uncertainty, Angola has honored its obligations, noting that the country's international reserves increased from 14 billion dollars to 15.5 billion dollars, while debt has decreased.
"It's a context of uncertainty that limits capital allocation for investors, but it seems to us that there are positive signs on our side," he emphasized, noting that the risk perception associated with Angola is closely linked to the price of oil.
Regarding the Eurobond market, Angola has a maturity date of approximately 864 million dollars in November, a challenge that the State is "creating conditions" to address.
Dorivaldo Teixeira said the numbers are encouraging, but require vigilance, because Angolan debt contains risk elements, "for example, very high exposure to foreign currency."
