The IMF has approved a $247 million reform loan for Angola. The loan is geared towards supporting the country’s structural economic and governance reforms.
The IMF had originally approved the loan facility totalling $3.7 billion in December 2018, under its Extended Fund Facility (EFF). The EFF is a loan pegged on deep structural, macroeconomic and governance reforms. It is designed to help countries with weak economic growth and problems paying bills.
The $247 million thus brings the fund’s total disbursements to Angola under the current programme to about $1.48 billion.
Since securing the fund’s loan package last year, Angola has managed to raise $3bn from its first bond sale in November.
Angola’s drying up oil fields, a 2014 oil price slump and also the dwindling foreign investment have negatively affected the country’s economy. As Africa’s second largest oil producer, 95% of its export revenues and 70% of the country’s taxes come from crude sales.