Angola, Africa’s second-largest oil exporter, has abandoned plans to issue Eurobonds this year due to global market uncertainties and falling oil prices that have dampened investor interest.
Dorivaldo Teixeira, director general of the Ministry of Finance’s debt management unit, explained that although a global roadshow earlier this year suggested favourable conditions for a sale in April or May, market instability prompted the government to reconsider.
The country, which produced an average of 1 million barrels of oil per day in June, is under increasing fiscal pressure as crude prices drop.
Brent crude traded around $69 per barrel on Tuesday, after falling 1.6% the previous day, according to Bloomberg.
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In a bid to reduce strain on public finances, the government has raised public transport fares by up to 50%, following a one-third hike in diesel prices.
These moves are part of a broader effort to scale back fuel subsidies.
To offset the decline in external financing, Angola raised 2.2 trillion kwanzas (approximately $2.4 billion) through fixed-rate bonds in its domestic debt market during the first half of 2025.
The approach is aimed at better managing refinancing risks. By the end of June, Angola’s total public debt had reached about $61.9 billion.
Meanwhile, yields on the nation’s Eurobond maturing in 2028 rose by 7 basis points on Tuesday, reaching 10.54%, signaling increased investor concerns.
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Image Credit: Business Insider Africa
