• Angola secures $750M World Bank loan for 2026 budget, debt relief
• Funds boost education, electricity, water amid oil dependency, 39% poverty
• Diversification advances via youth training, energy law, Namibia power link

Angola will receive $750 million from the World Bank to help fund its 2026 general state budget. Finance Minister Vera Daves de Sousa announced the deal Saturday in Washington during the World Bank and International Monetary Fund spring meetings, according to Angop.

The operation includes a guarantee mechanism that will allow Angola to refinance part of its debt on more favorable terms, the minister said. The objective is to reduce the overall cost of borrowing while freeing up fiscal space to fund social priorities, particularly in education.

The government plans to accelerate the construction of school infrastructure and strengthen teacher training. Beyond education, the partnership with the World Bank also covers projects aimed at improving access to electricity and drinking water.

The financing comes amid continued economic constraints. Heavily dependent on oil, Angola is pressing ahead with diversification efforts despite debt estimated at around 64% of GDP in 2025, according to the IMF. The World Bank put growth at 3.1% in 2025, a moderate pace in an environment where inflation is running close to 15.7%. Social challenges remain significant, with nearly 39% of the population living below the poverty line.

Structural gaps remain in the targeted sectors. Some 51.1% of the population had access to electricity in 2023, according to the World Bank, underscoring the limits of an energy system that still leaves many behind — despite the country's substantial resource potential in oil, hydropower and solar.

To address these challenges, authorities have launched several initiatives, including a training program for 500,000 young people designed to support employability and advance economic diversification. Angola also enacted an electricity law in January 2025, a move toward liberalization of the sector.

The country is also expanding regional partnerships. Angola and Namibia signed two agreements totaling 941 million Namibian dollars, or approximately $57.48 million, to develop cross-border electricity interconnection, according to Namibia Mining and Energy.

Ingrid Haffiny