The International Monetary Fund (IMF) and the Angolan government are continuing efforts to strengthen technical cooperation aimed at improving tax revenue mobilisation and supporting broader structural reforms, an IMF representative said.
Victor Liedo, the IMF’s permanent representative in Angola, said cooperation between both sides has intensified following the conclusion of the country’s financial assistance programme in 2022.
He was speaking at a regional seminar in Luanda on the management of tax incentives, organised by the IMF’s Regional Technical Assistance Centre.
Liedo said current engagement is built on two main pillars: macroeconomic surveillance through annual Article IV consultations, and technical assistance focused on capacity building in fiscal and financial governance.
He noted that IMF experts, working alongside regional partners such as “Africatitax South,” have been conducting regular missions to Angola to support national authorities in designing fiscal, monetary and financial policies, as well as improving the quality of national statistical systems.
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On the fiscal side, the IMF maintains close cooperation with Angola’s Ministry of Finance and the General Tax Administration (AGT), particularly on policies aimed at balancing fiscal consolidation with development needs.
Liedo said Angola faces a persistent policy challenge in reconciling the need to raise public revenue with the need to sustain economic growth and social investment.
“The main challenge facing the Angolan economy is the balance between revenue collection and economic stimulus,” he said.
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He added that a key medium-term priority should be expanding the tax base, while encouraging formalisation of economic activity, diversifying the economy and supporting the growth of small and medium-sized enterprises.
According to him, widening the tax base would reduce dependence on a narrow set of revenue sources and improve fiscal resilience in the face of external shocks, particularly fluctuations in oil prices, which remain a major driver of Angola’s public finances.
The IMF representative stressed that ongoing reforms must also ensure that tax incentive policies are well-designed, transparent and effectively monitored to avoid undermining revenue collection while still encouraging investment.
Angola has been pursuing economic diversification efforts in recent years, seeking to reduce its reliance on oil exports and strengthen non-oil sectors such as agriculture, manufacturing and services.
Authorities have also implemented fiscal reforms aimed at improving public financial management, increasing transparency and broadening the domestic revenue base.
The IMF seminar in Luanda brought together policymakers and technical experts to discuss strategies for designing and implementing more effective tax incentive frameworks, with a focus on improving monitoring and evaluation systems.
Participants are expected to examine how fiscal policy tools can be better aligned with development objectives, while ensuring sustainable revenue generation for the state.
The IMF said continued technical cooperation with Angola remains essential to supporting macroeconomic stability and advancing long-term structural reforms.
