Today, the Angolan finance minister said on Monday that his country borrowed, between November 2015 and June 2016, $11.5 billion from various lenders, to plug its budget deficit. Among these lenders, the China development bank provided $5 billion while China-backed firms granted $2 billion.

Africa’s third largest economy by Gross Domestic Product must face consequences of the consistent drop in oil prices, its main source of revenues. The country recently called off talks with IMF over financial aid, and announced the revision of its economic growth outlook. Now, its executives eye a 1.3% growth in economy in 2016, against 3.3% previously.

The government also had to bring its public expenditures down to $24 billion, against $30 billion initially projected, as forecasts for oil price were lowered ($41 a barrel from $45 initially). Still, the budget deficit/GDP ratio widened, now at 6% against 5.5% previously.

Angola’s overall debt is at $47.9 billion, of which $27bn of external debt. In addition to this deficit, the nation recorded lower investments, both private and public.

Subsequently, some organizations criticize the government’s negligence in the management of its public health, as yellow fever which currently affects populations worsened.

Angolan authorities have not completely rejected IMF’s aid and are open to discussions that will help improve the economic environment. However, a key to this improvement is net export which generated $17.9 billion in 2015. Though twice less important than the year before, they helped, by reducing public expenditures, cover a year of imports ($18 billion in 2015).

Idriss Linge