The World Bank Board of Executive Directors approved a $700 million Development Policy Operation (DPO) in support of the government of Angola’s efforts to bolster financial and social inclusion and strengthen the country’s macro-financial and institutional environment for increased private-sector led growth.
Since 2015, Angola has been in economic and financial crisis due to loss of fiscal revenues (especially from oil) and limited financing options. The government’s COVID-19 (coronavirus) response has been constrained by limited fiscal space.
This DPO provides much-needed financing in support of the government’s response to the COVID-19 pandemic and its socioeconomic impacts. In addition, the operation supports the government’s structural reform agenda, which has become even more urgent as a result of the COVID-19 pandemic, and which will create the conditions for a stronger economic recovery in the years to come.
“This DPO reaffirms the World Bank’s confidence in the country’s ongoing economic reforms aimed at boosting the economy. The DPO support focuses in parallel on crucial macro-financial reforms and inclusion to ensure that the poorest and most vulnerable are protected,” said Jean-Christophe Carret, World Bank Country Director for Angola.
The operation is organized around two pillars, each including several policy areas. Pillar 1, strengthening the macro-financial and institutional environment, includes a focus on strengthening debt and natural resource management for fiscal sustainability; strengthening financial sector resilience; strengthening management and commercial viability of state-owned enterprises; supporting pricing and subsidy reform for financial sustainability and effective service provision; and leveling the playing field for private investment.
Secondly, Pillar 2, protecting the poor and vulnerable, focuses on protecting the poor and vulnerable from shocks and increasing access to finance.