International

IMF approves $488m aid to Angola to battle COVID-19

Published

3 years ago

January 12, 2021

In its bid to battle the COVID-19 pandemic, Angola is to benefit from the International Monetary Fund (IMF) intervention as the executive board of the international organization has announced a disbursement of $487.5 million to the Southern African nation which is suffering from low oil prices due to the coronavirus pandemic.

Making the announcement on Monday, January 11, the IMF said the financial aid is part of a three-year agreement for about $3.7 billion approved on December 7, 2018, under the IMF’s Extended Fund Facility (EFF).

The recent disbursement brings to a total of nearly $3 billion granted in aid to Angola, a country with significant oil and mineral wealth but has a large part of its population living in abject poverty.

The three-year plan, according to the IMF in a statement, is “aimed at restoring external and fiscal sustainability, improve governance, and diversify the economy to promote sustainable, private sector-led economic growth.”

The international money lender said the economic shock brought on by the coronavirus pandemic has “continued to impact negatively on Angola’s economy and population, hence the need for the intervention.”

Part of the statement reads:

“Oil production and prices remain weak, and the health and social impacts of the pandemic continue to be felt.

“The authorities achieved a prudent fiscal adjustment in 2020 that included non-oil revenue gains and restraint in non-essential expenditure, while preserving essential spending on health and social safety nets.”

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