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Angola banks entry into local Bourse gives credibility to economy
The Minister of State for Economic Coordination, Manuel Nunes Júnior, said last week that the entry of the banks BAI and Caixa Angola into the national Stock Exchange is a strong indicator of confidence for the organisation of Angola’s capital market.
Speaking at the ceremony to launch Banco Caixa Geral Angola, on the Angolan Debt and Securities Exchange (BODIVA), Manuel Nunes Júnior, said this is another fundamental indicator for creating a feeling of confidence in the Angolan economy, as it is essential in the business world.
The minister stressed that the move by the State in quitting its participation in this bank, is part of the privatization process started in 2019 that includes 132 assets it aims to privatize, of which 86 have already been concluded.
“This action is the reaffirmation of the role of the Angolan capital market as a transparent and initiating mechanism for financing companies”, the minister said.
The State minister reiterated that the government’s global growth forecast for the current year is fixed at 2.7 percent, with 3.2 percent supported by the non-oil sector and 2.1 percent by the oil sector, including gas.
According to the government’s economic coordinator, the country’s internal accounts have been balanced from 2018 to 2022, with the exception of 2020, due to the Covid-19 pandemic.
As regards external accounts, he said that they are also balanced, and that the balance of payments has been systematically positive.
“Which means that the inflow of foreign currency has been greater than the outflow of these resources from the country, ensuring the stability of Angola’s international net reserves,” the minister assured.
About the foreign exchange market, Manuel Nunes Júnior affirmed that it is stabilized because since November 2020 the national currency has followed a stable trajectory, in relation to the main international currencies.
The public debt has been decreasing considerably,the minister said, underscoring that the stock of the Gross Domestic Product (GDP) lowered from 128.7 % in 2020 to 82.1 % in 2021.
Already in the first quarter of this year, the ratio fell to 66 % and will continue its downward trend until the end of the year.
In the view of the coordinator for Angola’s economic policies, with the reduction that is being observed in the stock of public debt, the country is moving towards a reduction of interest rates prevailing in the domestic market.
This fact, clarifies the minister, constitutes an important condition to increase credit in the economy and consequently the volume of investments in the country.
The minister explained that the current moment is stimulated by the reforms that have been taking place in the budgetary, monetary, and exchange policies, as wsell as the measures to regulate the market of goods and services.
The minister also pointed out that the annual inflation rate in August was 19.7%, while in 2021 it exceeded 30%.
