The slump in global oil prices around 2015 – 2016 triggered Angola’s economic growth to come to a halt. Forcing the southern Africa state to seek a rescue package from the International Monetary Fund.
Before oil prices plunged, the country’s economy had been growing steadily and was actively recovering from the civil war which ended in 2002. Around 80% of the country’s export earnings is generated from oil production. The slowdown within the petroleum industry instigated by low demand of oil and gas negatively affected the oil rich state.
Since 2017, Joao Lourenco’s government has worked tirelessly to transform the oil and gas sector to boost the country’s economy. In early 2018, the government launched the Macroeconomic Stabilization Program (MSP) to rescue underperforming economic sectors as well as, maintaining low inflation to stimulate growth.
An independent regulator for the oil and gas sector was created to oversee the country’s oil and gas concessions stripping regulatory powers from the parastatal agency, Sonangol. As Angola seeks to lure in investments, the government has also introduced incentives for investors in areas such as tax.
Lourenco’s administration seems to be heading the right way, the World Bank predicts Angola’s GDP will grow by 2.2 percent this year. The country has not experienced such growth in over five years.