Nigeria doesn’t seem to be the only oil exporting country affected by the fall in oil prices. Angola, the second largest oil exporting country in Africa has requested financial assistance from the International Monetary Fund (IMF).
Crude oil sells at 39 dollars per barrel which is less than the level reached in the middle of 2014. This decline in oil prices has affected most countries who rely solely on oil money to run their economy. Oil exportation makes up for two-thirds of Angolan government revenue.
“The sharp decline in oil prices since mid-2014 represents a major challenge for oil exporters, especially for those economies that have yet to become more diversified,” said the IMF’s deputy managing director, Min Zhu.
These countries have tried to diversify their economies. Saudi Arabia the biggest oil exporting country is looking to diversify the economy and cut government spending. Also, Nigeria’s economy is steering towards Agriculture and locally produced goods. Angola is also headed the same way, focusing more on fisheries, agriculture and mining. The non-oil producing sector of Angola has grown to almost 70%, which is about 30% more than it was in previous times.
The plan to diversify the economy has in no way lessened the fact that oil exportation is tantamount to boosting the economy. Hence, the Angolan government’s decision to seek the IMF’s help.
The IMF has said in a statement that it is ready to work with the Angolan government.
“The IMF stands ready to help Angola address the economic challenges it is currently facing by supporting a comprehensive policy package to accelerate the diversification of the economy, while safeguarding macroeconomic and financial stability.”
The meeting with the IMF concerning Angola’s economic reform will begin next week.
“We expect to start discussions with the country’s authorities during the upcoming Spring Meetings in Washington D.C. and in Angola shortly thereafter on an economic program that could be supported by a three-year Extended Fund Facility (EFF),” the statement said.
The Angolan government has also partnered with the World Bank and the African Development Bank to secure funds for infrastructure projects.