Angola Economy |

Africa: Real GDP to grow by 3.4% in 2021, outlook subject to elevated uncertainties

LAGOS (Capital Markets in Africa) – The African Development Bank Group (AfDB) projected Africa’s real GDP to grow by 3.4% in 2021, after contracting by 2.1% in2020 due to the fallout from the coronavirus pandemic. It attributed the region’s economic recovery to the easing of pandemic related restrictions, the anticipated resumption of tourism activity, and the increase in commodity prices. It noted that the economic impact of the pandemic varies across economic groupings and sub-regions,…

Angolan Banking sector resilient to macroeconomic shocks

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LUANDA (Capital Markets in Africa) – The International Monetary Fund considered that the heavy reliance of Angolan banks on the oil sector constitutes a key risk, mainly for state-owned banks, while private banks are better positioned to weather the impact of an oil shock given their initial strong position. It indicated that the main channel of transmission of an oil shock is through fiscal activity, as lower oil prices would contain public spending and weaken non-hydrocarbon sector activity and,…

Angola’s banking system is stable despite weak economic activity

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LUANDA (Capital Markets in Africa) – The International Monetary Fund indicated that Angola’s banking system is stable despite weak economic activity that has weighed on the banks’ capital metrics and asset quality in the previous three years. The sector’s risk-weighted capital adequacy ratio reached 18.9% at the end of 2017 relative to 19.2% at end-2016, but was well above the regulatory minimum of 10%. The IMF noted that Banco Nacional de Angola (BNA) introduced a new liquidity requirement that limits…

HSBC Said to Freeze Account Tied to $500 Million Angolan Fraud

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LUANDA (Capital Markets in Africa) – HSBC Holdings Plc froze an account linked to an alleged fraud that siphoned about $500 million from Angolan state coffers, according to a person briefed on the matter. A large transfer raised suspicions at the bank, prompting it to alert U.K. authorities at least weeks ago, the person said, asking not to be identified discussing confidential information. Britain’s National Crime Agency told Reuters last week it’s preparing to return funds…

Angola Owes $5 Billion to Suppliers, Plans Eurobond Sale in 2018

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LUANDA (Capital Markets in Africa) – Angola owes more than 1 trillion kwanzas ($5 billion) to companies in Africa’s second-biggest oil producer and may sell an international bond this year, according to its Macroeconomic Stabilization Plan. President Joao Lourenco’s government is seeking to settle the unpaid invoices by 2019, according to the document seen by Bloomberg. The arrears relate to costs incurred in the country between 2014 and 2016, it showed. “The payment of these arrears,…

Angola’s Devaluation Is Just the Start as Investors Expect More

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LUANDA (Capital Markets in Africa) – Angola may have devalued its currency by more than 10 percent, but it will take more than that to end dollar shortages and revive the OPEC member’s battered economy. The kwanza weakened 11 percent to 187.95 per dollar by 2:34 p.m. in Luanda, the capital, a day after the central bank let it drop in an auction of foreign exchange, its first since saying last week it would end an almost…

Angola Is Said to Plan Currency Sale Tuesday as It Ends Peg

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LUANDA (Capital Markets in Africa) – Angola’s central bank will hold an auction on Tuesday to sell foreign currency to commercial banks, its first since saying it will abandon a dollar peg, according to three people familiar with knowledge of the matter. The kwanza will probably be allowed to depreciate at the auction as the central bank shifts to a trading band, the people said, asking not to be identified because they aren’t authorized to…

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