Angola, which has recently emerged from civil war, is in the process of building its own identity. A systematic drive towards diversification of the economy away from the oil sector and the process of de-dollarization are pivotal parts of this process. How are banks, the government and locals coping as this transformation takes hold?
Country risk: Angolan investors ignore risks Investors snapped up Angola’s $1.5 billion Eurobond debut this month, and yet the sovereign borrower’s country-risk score has plunged, putting it among the world’s worst default risks.
Angola's de-dollarization drive The country’s radical programme has put pressure on the banking sector, which in its short existence has relied heavily on the business brought in by foreign exchange. How can banks stay afloat with a lack of dollars in the system?
Is Angola ready for PPPs? The international community has lauded Angola for its quick-thinking and tough decision-making following the sharp fall in the oil price. In February, Angola cut AKz1.8 trillion ($14.3 billion) from its AKz7.2 trillion budget – months before Nigeria, the region’s largest economy and oil producer, made any changes to its own economic outlook.
Angola goes after diversification The fall in the oil price and the de-dollarization of the economy has done even more to highlight Angola’s over-dependence on oil. As a result, the diversification of the economy is higher-up on the government’s agenda than ever before.
Angola to test African Eurobond appetite Angola could become the first African sovereign bond borrower since the great oil price crash this year in a debut deal that will set the tone for frontier-market debt.
Angola sets sights on capital-markets reform The development of Angola's capital markets has been long promised but recent indications from the country's capital-markets commission suggests secondary public-debt trading could begin as early as next month. Nevertheless, it's unclear when the stock exchange will open its doors.