Reducing oil dependence is urgent for Angola amid oil price


The production of goods and services may be the way to reduce the impact of COVID-19 and the drop in the price of oil in the southern African nation Angola, according to economist Carlos Padre.

In an interview early this week with Xinhua, the economist said the country’s dependence on oil has made the national economic life unstable due to price fluctuations in the international market.

To stabilize the economy, it is important to invest in national production such as agriculture, fisheries, in order to reduce dependence on oil, he said.

To get out of the crisis, the country must also take on serious tasks of comprehensive financing to the economy, from production to consumption, with greater vigor in coherence and transparency throughout the financial system including public and private banks.

On the other hand, he said, it is important not to neglect the microeconomics, which is to increase the production of various goods and services, with a view to boosting the country’s economic sector thus accelerating ways to put an end to oil dependence.

The economist spoke of the need to preserve the Angolan Development Bank (BDA) as an institution focused on economic and business development within the framework of the 21 points recently presented by the government to support companies and families in response to the COVID-19 pandemic.

The 21-point package of measures cover the real economy, namely those related to the productive sector and those related to families and the informal sector of the economy.

The government also allocated of 488 billion Kwanzas (about 860 million U.S. dollars ) to financial support initiatives, including the Development Bank of Angola.

This allocation aims to ensure financial support for the minimum maintenance of the activity levels of micro, small and medium-sized companies in the productive sector.

The expert also highlighted the need to reduce bureaucracy so as to simplify the process of land acquisition as a way to mitigate the crisis.

For him the incentive for national and foreign private investment would help in the production of tradable goods for the domestic market, exports, with structured lines of financing with subsidized interest rates, as well as tax exemptions.

Stimulating national and international private investment will also boost entrepreneurship in the public sector thus contributing to the diversification of the economy, he said. Enditem

Send your news stories to Follow News Ghana on Google News Aviator


Please enter your comment!
Please enter your name here