José de Lima Massano, featured in the second edition of “Conversas Economia 100 Makas” under the theme “Where is Angola’s Economy Headed,” stated that subsidies for fuel, electricity, and water are unsustainable.
The minister emphasized that the current levels are exceptionally high and do not benefit those who are most in need, compounded by issues like fuel smuggling.
“The subsidies are so high that they undermine the stability of our public accounts,” José de Lima Massano remarked, highlighting that the planned expenditure on fuel subsidies for this year is nearly equivalent to the cost of 1,400 project implementations.
According to the Minister for Economic Coordination, the Angolan government is handling approximately 3,000 projects with 1,400 underway. However, due to financial constraints, they had to “reassess priorities,” putting around 500 ongoing projects on hold.
“We had to pause these projects to ensure stability in our public finances,” he noted.
The Angolan official reiterated the need for this corrective course, stating, “It’s a path that will continue progressively.”
“We need to make these adjustments and direct resources to sectors in need, thereby addressing vulnerabilities more swiftly and aiding in a more harmonious national development,” he emphasized.
Last month, the diesel price per liter increased by 50% to 300 kwanza (30 cents), aligning with the price of gasoline.
In Angola, fuel is state-subsidized, but the government has begun gradually withdrawing these subsidies since 2023, following International Monetary Fund (IMF) recommendations.
