In what is described has a “rare interview with a member of Angola’s government”, the newspaper ‘Financial Times’ spoke with Angola’s Economy Minister, Abraão Gourgel and highlights that the country is seeking to raise up to $10bn from foreign creditors as it attempts to push ahead with key infrastructure projects and will “continue to prioritise vital infrastructure spending, including building a $6bn refinery”.
“To raise funds”, the article explains, “Mr Gourgel said Angola was seeking to launch its debut Eurobond — which would be the first test of investors’ appetite towards frontier market African debt since crude prices began to slump last year. The Eurobond would raise between $1bn and $1.5bn”.
The newspaper also recalls that the World Bank is preparing a $500m loan for Angola adding that the Minister declared there will be bilateral credit lines “extended with the likes of Brazil, Spain and China”. Luanda has also approached Goldman Sachs and another London-based investment firm for loans, FT points out.
“In total, the government aims to raise 1,654bn kwanza ($15.2bn) through domestic financing and a further 1,105bn kwanza via external financing. The currency has depreciated sharply this year and is trading at about Kw110 against the dollar.
Angola’s government has set an ambitious growth target for Angola of 6.6 per cent this year, while the International Monetary Fund forecast growth of 4.5 per cent, down from its prediction of 5.9 per cent in August”.
“Mr Gourgel said the crude slump was a wake-up call that would help Angola diversify from oil and develop its non-oil private sector, including agriculture, mining, fishing and manufacturing.
‘Now we have to increase the speed of implementation of the diversification — there is no way back’, the article quotes. (Source: Financial Times. You may read the all article here).