The International Monetary Fund (IMF) issued a report on 25 August 2015 following the conclusion of discussions with Angola under Article IV of the IMF’s articles of agreement.

The IMF report notes that Angola’s economy has been hit by the decline in oil prices although the economic position has been supported by an adequate level of reserves. Oil accounts for 95% of exports from Angola and around 75% of fiscal revenue. The economy is expected to begin recovering from 2017 but there are risks including a further drop in the oil price. There is therefore a need to diversify the economy and implement structural reforms.

The report recommends that fiscal policy should aim at reducing the debt in the medium term. In view of the low oil price there needs to be a move towards collecting more non-oil government revenue. Non-oil tax revenue can be increased by rationalizing the tax incentives offered. Angola also needs to strengthen the tax administration agency (AGT) to boost tax collection.

The National Development Plan is aiming to increasing investment and competitiveness to create the conditions for diversifying the economy. The IMF suggests that attention should be paid to improvements to the business environment, physical infrastructure and development of human capital.