• BEE winners and losers

    Creating real change and real jobs requires a new ideology, says Gerhard Papenfus.

  • Governance matters

    Addressing risk well and timeously can be a source of growth, says Ian Mann.

  • Road to riches

    Taxpayers keep funding structures with big plans but who knows what efficacy, says Mandi Smallhorne.

See More

Angola gets rating boost

May 24 2011 21:10 Sapa

Related Articles

Angola woos investors with law changes

'Oil shields Africans from criticism'

Standard Bank to expand in Angola

SANDF chief now an ambassador

Deals bolster SA, Angola ties

PetroSA eyes oil-rich Angola

Luanda - Fitch Ratings upgraded oil giant Angola's credit rating by one notch Tuesday to BB-, saying high oil prices and disciplined spending had bolstered the southern African country's stability.

The hike puts Angola one tier below investment grade, or BBB, and will boost its search for commercial loans to help finance the mass of reconstruction projects it has undertaken since the end of its civil war in 2002.

Angola's economy has grown at breakneck speed since the end of the 27-year war but slowed sharply in 2009 when oil prices dropped during the global economic crisis.

The country fell behind on paying reconstruction contractors and, as foreign reserves plunged, took a $1.4bn loan from the IMF that came with a package of belt-tightening measures attached.

Fitch sovereign ratings director Veronica Kalema said Tuesday the country's fiscal discipline since the November 2009 IMF deal had put it back on track.

"The upgrade reflects a strengthened macro policy framework under Angola's IMF programme, coupled with improved performance buoyed by fiscal and monetary tightening and higher oil prices," she said in a statement.

"The country was able to overcome the effects of the global financial crisis of 2008-2009 relatively quickly. Substantial contractor arrears were cleared in the first quarter of 2011 and reserves have continued to recover."

But Fitch warned the country is still vulnerable to oil price shocks and said it needs to diversify its economy, continue rebuilding infrastructure and work to build skills and improve the quality of life for its 18 million people, 40% of whom live in poverty.

Angola, a former Portuguese colony, rivals Nigeria for the title of Africa's largest oil producer. Thanks mainly to crude exports its economy has grown an average 11.3 percent a year since 1994, according to the IMF.

Economy Minister Abraao Gourgel in February forecast seven percent growth for this year and 15% growth for 2012.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

This is the most expensive burger in the world!

You won't believe how much someone was prepared to pay for this burger!


Luxury living

Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
These are the richest people on the planet!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote