Angola is broke, President finally confesses

[MK254]

Angola’s President José Eduardo dos Santos says his country is broke. PHOTO | AFP

• The country relies on crude exports for two-thirds of tax revenue, and 95 per cent of its foreign currency receipts.
• The leader attributed the situation to failure of the national oil company Sonangol to remit cash to the government.
• According to the President the country is now without money to import goods since it relies heavily in imports.
• Angola is the second-largest producer of crude oil in Africa and is regularly cited as one of the continent’s fastest growing economies.

Angola’s President José Eduardo dos Santos has confessed that his country is broke.

The leader attributed the situation to failure of the national oil company Sonangol to remit cash to the government.

Angola is the second-largest producer of crude oil in Africa and is regularly cited as one of the continent’s fastest growing economies.

The country relies on crude exports for two-thirds of tax revenue, and 95 per cent of its foreign currency receipts.

Analysts however say the billions of oil dollars flowing in have not benefited the ordinary people, and have only succeeded in to the emergence of an elite few.

The United Nations notes that while the economy has been growing at more than 7 per cent annually, 38 per cent of its 26 million people Angolans still live in poverty.

The southern African country has been managed in an “extremely complicated environment” due to the lack of foreign exchange originated by the depression of the oil price in the international market, President dos Santos stressed.

The president, who addressed his cabinet council meeting on Wednesday at the southern Moxico province also said the country’s economy is recording just 1 per cent growth contrary to five and six per cent in a recent past.

Weaker Kwanza

“This means our economy is decreasing drastically and since January the government has not gotten revenues from Sonangol ...due to the oil depression price” he added.

According to the President the country is now without money to import goods since it relies heavily in imports.

Last week, the International Monetary Fund (IMF) said the Angolan economy continues to be severely affected by the oil price shock experienced in the last two years.

Economic growth slowed to 3 per cent in 2015 driven by a sharp slowdown in the non-oil sector.

“Inflation has accelerated and reached (year-on-year) 29.2 per cent in May 2016, reflecting a weaker kwanza that has depreciated over 40 per cent against the US dollar since September 2014, higher domestic fuel prices following the removal of fuel subsidies, and loose monetary conditions, ” IMF reported.

According to the international lender, the external current account balance has moved into deficit, although international reserves have been protected and remain at relatively comfortable levels.

Angola is broke, President finally confesses

 

[Chapa Nalo Jr]

Sitaki hata kusikia utetezi wake. Atoke tu madarakani, inatosha kwa yeye.

 

[Bavaria]

Walikuwa na muda na uwezo wa kudiversify their economy.

Norway, Qatar, Marekani, Dubai wameweza, kwanini wao washindwe?

 

[MK254]

Walikuwa na muda na uwezo wa kudiversify their economy.

Norway, Qatar, Marekani, Dubai wameweza, kwanini wao washindwe?

Nchi ulizotaja hamna ya mweusi hata moja.

 

[Bavaria]

Nchi ulizotaja hamna ya mweusi hata moja.

Venezuela kuna weusi?

 

[Bavaria]

Nchi ulizotaja hamna ya mweusi hata moja.

5 countries crushed by oil price collapse
by Ivana Kottasova @ivanakottasova December 30, 2015: 10:41 AM ET

CNNMoney's 2016 Playbook: Oil & Gas
Countries that produce the world's crude are getting crushed by low prices.
Huge budget surpluses are turning into deficits, and generous social programs are being replaced with austerity and cuts.


Oil has collapsed below $37 a barrel, compared to over $100 in mid-2014. The global oil glut, OPEC's determination to pump like there is no tomorrow, and slowing demand from China and other countries are pushing oil prices to new lows.

Here are the five countries hit the worst.

Venezuela

Venezuela has the world's largest oil reserves. Its government has for years used the money it makes producing oil to pay for pensions, health care, social benefits and even to subsidize housing and grocery stores.

But now, the economy is on the brink of collapse. Inflation soared over 150% in 2015 and is expected to rise over 200% next year. The government is unable to pay its bills, and food and basic supplies are in short supply.

The economic downturn has led to political turmoil. Earlier this month, the country's opposition won a majority in an election for the first time in 17 years.

Related: Saudi Arabia crushed by cheap oil

Saudi Arabia

Oil accounts for 75% of Saudi Arabia's revenue and the country's finances are getting slammed. The government ran a nearly $100 billion budget deficit in 2015 and announced tough austerity measures for next year.

"That's a reminder that even the world's lowest-cost oil producer relies on high(er) prices to balance its budget and current prices don't come anywhere close," Kit Juckes, global strategist at Societe Generale, said.

Nigeria

Africa's biggest oil producer is in trouble. Oil accounts for roughly 75% of Nigeria's government revenue, and almost 90% of the country's exports.

The plunge in oil prices has left the government unable to pay its bills. Local media reported that in some regions, state employees haven't received salaries in months.

The country is suffering from power cuts and fuel shortages.

Interactive: What it costs to produce oil

Russia

Nearly half of Russia's government revenue comes from oil and gas exports. The plunge in oil prices came when Russia was already suffering because of Western economic sanctions, imposed on Moscow over its involvement in the crisis in Ukraine.

Russia's budget is based on an oil price of $50 per barrel, but oil is trading around $37. The International Monetary Fund expects Russian GDP will shrink by 3.8% this year and by another 0.6% in 2016.

Related: Russia is bracing for $30 oil in 2016


Iraq

Low oil prices are crushing Iraq's finances when the country desperately needs income to fund its war against ISIS.

Iraq has been pumping record amounts of oil this year, but the increase in production hasn't compensated for the drop in prices. The country has huge oil reserves, but needs more investment in infrastructure to access it.

Related: Oil price crash could get even worse in 2016

-- Alanna Petroff and Matt Egan contributed to this article.

Oil price collapse: 5 countries suffering the most

 

[Kiranga]

Dos Santos ana USD billion 20. Binti yake ana USD bilioni 3.3. Hizi ni karibu ya 75% ya GDP ya Tanzania ya 2013.

Halafu unaambiwa nchi haina hela?

 

[Tuyuku]

Dos Santos ana USD billion 20. Binti yake ana USD bilioni 3.3. Hizi ni karibu ya 75% ya GDP ya Tanzania ya 2013.

Halafu unaambiwa nchi haina hela?

Ndo shida ya viongozi wa Afrika

 

[CHUAKACHARA]

Nchi ulizotaja hamna ya mweusi hata moja.

Nilisema humu kuwa Mungu alikosea kumuumba mwafrika eti nakufuru! Hakuna nchi ya kiafrika hapo

 

[MK254]

Point taken Bavaria

 

[Rocky Vicent]

Nchi ulizotaja hamna ya mweusi hata moja.

Kwa hyo inamaana imeandikwa kwa mungu weupe peke yake ndo wanaoweza tusijishushe jaman tubuni mbinu ndo swala la msingi

 

[MK254]

Kwa hyo inamaana imeandikwa kwa mungu weupe peke yake ndo wanaoweza tusijishushe jaman tubuni mbinu ndo swala la msingi

Tatizo tunaongea sana lakini matendo zero. Saudia na nchi zingine wataeleweka maana kwao jangwa, sasa hawa Angola walisubiri nini kabla ya kufanya diversification. Utegemezi wa mafuta ni hatari, lazima ubuni mbinu zingine za kupata mapato kama nchi na hufai kusubiri miaka mingi halafu baadaye unaambia watu nchi haina kitu.

 

[Quickly]

Where has daddy's little girl taken all the money to?????

 

[Kingsharon92]

Masikini bara langu afrika nani kakuroga?

 

[Sahare]

Nchi ulizotaja hamna ya mweusi hata moja.

Mtu mweusi ni tatizo???? Mbona ubongo wetu ni mweupe kama wa wazungu? Au ni mazingira jamani???

 

[MATHIAS KABYEMERA]

sasa kama nchi imefirisika yeye anatafuta nini ikuli? Uingereza waziri mkuu kajiuzuru kwa nchi kupiga kura ya kujitoa EU, yeye nchi imefirisika bado yupo madarakani? Acha niende kwenye msiba wa Mama Kashonda! Mama huyu alikuwa mjumbe wa Tume ya katiba sio kusikiliza siasa za Africa

 

[butron]

D

Angola’s President José Eduardo dos Santos says his country is broke. PHOTO | AFP

• The country relies on crude exports for two-thirds of tax revenue, and 95 per cent of its foreign currency receipts.
• The leader attributed the situation to failure of the national oil company Sonangol to remit cash to the government.
• According to the President the country is now without money to import goods since it relies heavily in imports.
• Angola is the second-largest producer of crude oil in Africa and is regularly cited as one of the continent’s fastest growing economies.

Angola’s President José Eduardo dos Santos has confessed that his country is broke.

The leader attributed the situation to failure of the national oil company Sonangol to remit cash to the government.

Angola is the second-largest producer of crude oil in Africa and is regularly cited as one of the continent’s fastest growing economies.

The country relies on crude exports for two-thirds of tax revenue, and 95 per cent of its foreign currency receipts.

Analysts however say the billions of oil dollars flowing in have not benefited the ordinary people, and have only succeeded in to the emergence of an elite few.

The United Nations notes that while the economy has been growing at more than 7 per cent annually, 38 per cent of its 26 million people Angolans still live in poverty.

The southern African country has been managed in an “extremely complicated environment” due to the lack of foreign exchange originated by the depression of the oil price in the international market, President dos Santos stressed.

The president, who addressed his cabinet council meeting on Wednesday at the southern Moxico province also said the country’s economy is recording just 1 per cent growth contrary to five and six per cent in a recent past.

Weaker Kwanza

“This means our economy is decreasing drastically and since January the government has not gotten revenues from Sonangol ...due to the oil depression price” he added.

According to the President the country is now without money to import goods since it relies heavily in imports.

Last week, the International Monetary Fund (IMF) said the Angolan economy continues to be severely affected by the oil price shock experienced in the last two years.

Economic growth slowed to 3 per cent in 2015 driven by a sharp slowdown in the non-oil sector.

“Inflation has accelerated and reached (year-on-year) 29.2 per cent in May 2016, reflecting a weaker kwanza that has depreciated over 40 per cent against the US dollar since September 2014, higher domestic fuel prices following the removal of fuel subsidies, and loose monetary conditions, ” IMF reported.

According to the international lender, the external current account balance has moved into deficit, although international reserves have been protected and remain at relatively comfortable levels.

Angola is broke, President finally confesses

Duh,uyu mzee bado anatawala kha!Basi achukulie hili tatizo la kiuchumi kama ndiyo mwisho wa uwezo wake kuongoza.

 

[MK254]

sasa kama nchi imefirisika yeye anatafuta nini ikuli? Uingereza waziri mkuu kajiuzuru kwa nchi kupiga kura ya kujitoa EU, yeye nchi imefirisika bado yupo madarakani? Acha niende kwenye msiba wa Mama Kashonda! Mama huyu alikuwa mjumbe wa Tume ya katiba sio kusikiliza siasa za Africa

Ndio hizo za Afrika, nchi imefilisika lakini jamaa amekomaa na kung'ang'ania hadi azikwe akiwa rais. Mugabe hadi anauza wanyama pori. Wenzetu Uingereza wanajiuzulu kisa kura ya maoni.

 

[Dusty Foot]

But he has money too buy precious stones worth billions for his personal reserves...very odd, talk is such a thing that we have to be very keen about..

 

[zimwimtu]

Nilisema humu kuwa Mungu alikosea kumuumba mwafrika eti nakufuru! Hakuna nchi ya kiafrika hapo

usikufuru ndugu, hao wazungu wanaonekana bora kwa sababu wapo waafrika. kitu huwa kinaonekana kizuri kwa sababu kuna kitu kibaya. Mungu huwa anafanya kitu kwa makusudi yake, wala hakosei, hachelewi wala hawahi. He is always right.