Kristalina Georgieva, who arrived in Angola on Wednesday, spoke today to journalists after being received by Angolan President João Lourenço at the Presidential Palace in Luanda.
The official expressed her satisfaction with the reforms initiated in 2017, stating she is “very pleased” that the IMF has been “able to support Angola through these reforms.”
The managing director emphasized that the government acknowledges the need for public spending that “makes a difference in the lives of Angolans.”
For this reason, she stated, the IMF encourages the government to “gradually remove subsidies that greatly benefit the wealthier people in Angola, and use these savings for the poorer ones, those who truly need this support.”
According to Georgieva, the government is determined to pursue this path “gradually and carefully,” beginning with “helping the people who would be negatively affected by the withdrawal of subsidies” before progressing with their complete elimination.
The official recalled that “fuel subsidies cost 2.5% of Angola’s GDP.”
She questioned: “Think about what could be done to create jobs for young people, stimulate small businesses, and improve education with this money. And I always ask this question: why should the wealthier people benefit from cheap fuel? It should be a benefit only for the poorer individuals who need it.”
Kristalina Georgieva also stated that the government intends to first assess the effectiveness of social support directed at the most vulnerable families, highlighting the cash transfer program Kwenda, which “already supports 1.7 million people.” Nevertheless, she acknowledges that “expanding support and making it effective is a significant challenge.”
“We want people to trust that those who are vulnerable will not suffer unnecessarily,” she concluded.
The managing director also thanked Angola “for the leadership of the African Union and the focus on infrastructure and connectivity, which are so important for the continent,” considering that “much has been achieved in terms of building the foundation for growth,” emphasizing that “macroeconomic stability is essential to putting the country back on the road to positive growth.”
Georgieva added that reforms must continue in a world marked by rapid changes. “Geopolitical transformation, technological transformation, and climate shocks require countries to be resilient. It is essential to have strong economic performance, and that is what we support Angola in continuing to do,” she stated.
During her visit to Angola, Kristalina Georgieva will also meet with students at the Catholic University of Angola and will later be received at the headquarters of the urban mobility startup ANDA.
