To read this content please select one of the options below:

Angola's oil revenue crunch induces policy shifts

Tuesday, March 3, 2015


Angolan economic policy.


Parliament on February 24 voted to cut the national budget by 25% in response to low global oil prices, which caused a 57% slump in oil earnings in January 2015, compared to the same period in 2014. Angola relies on oil for approximately 95% of export earnings and 80% of tax revenues. With elections looming in 2017, the Eduardo dos Santos government is taking steps to ensure stability and entrench its power.


  • Protests over rising living costs will concentrate in Luanda (which MPLA lost in 2012), potentially prompting more troop deployments.
  • Political control of the sovereign wealth fund may direct it to invest in social programmes, but this could hurt its commercial viability.
  • The small, largely public sector-employed middle class has usually avoided voicing dissent, but rising living costs could change this.
  • Opposition calls for dos Santos to step down are likely to increase, but his strong military backing will preclude this scenario.

Related articles

Expert Briefings logo
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.