africa Angola commodities Economy Finance oil

Oil resources to finance Angola’s economy

The Angolan minister of State for Economic and Social Development, Manuel Nunes Júnior, said Thursday in Luanda that it would be essential for the oil sector to continue to generate the necessary financial resources to finance the rest of the economy to make it more solid and sustained.

According to Manuel Júnior, revenues from oil exploration should finance diversification of the economy and thus start a new cycle of stability less dependent on oil.

The Minister of State, who was speaking at the opening ceremony of the 1st Consultative Council of the Ministry of Mineral Resources and Petroleum, representing the President of the Republic, João Lourenço, recalled that although there is a decrease in the weight of the oil sector in the national economy, it is not yet seen into a structural change in exports and state revenues, especially in foreign exchange.

According to the official, when the price of oil drops significantly in the international market the entire economy of the country is affected negatively and severely.

As a solution to these oscillations, State Minister points out the diversification of the national economy.

Between 2013 and 2016, the oil sector recorded negative growth rates, with the exception of 2015, due to operational problems such as maintenance of facilities and equipment, natural decline of the fields in production and delays in the entry into production of new fields.

Source: Angop

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