27 June 2016, Luanda — Angola failed to raise 60% of oil generated foreign currency earnings for State Budget due to the global sharp price drop of product, said Wednesday in eastern Moxico province the head of State, José Eduardo dos Santos.
Delivering his speech at the joint meeting of Economic and Real Economy Commissions of Cabinet Council, José Eduardo dos Santos said that about 60% of the state budget is covered by resources from Oil sector.
“The price of oil in the international market fell, until last February, to USD 28 a barrel,” said the president, adding that with this level of prices, the State-run Oil Firm “Sonangol” can no longer ensure funds for the State Budget.
More easily said, the President went on, the national treasury no longer receive since January this year revenues from Sonangol because it is not in a position to do so.
“We failed to receive the 60% which are normally foreign currency revenues (hard currency),” he added.
In his speech, the head of Executive said that our country is virtually dependent on imports. Imports for food products, raw materials, domestic production, industry, agriculture, various materials and payment of foreign experts.
The president also said that at this time the country is facing extremely complicated environment as 40 percent of revenues for budget comes from non-oil sector.”
According to him, it has to do with the local currency revenue (Kwanzas) coming from different sectors, which most of them are product charged by Customs service.
“We should understand the situation we are experiencing,” said the Statesman. “This means that the growth of our economy has dropped sharply. Some put it at between 1 and 2% when it had stood at between 5 and 6%.
José Eduardo dos Santos said that in order to overcome the situation the government, under the ruling MPLA party, approved a strategy to get out of the current economic situation.
The president described the diversification of the national economy, to increase domestic production and reduce imports non-oil goods, as a strategic task.
The meeting also focused on Moxico government report on the economic and social situation in the region, information on rehabilitation and construction of the local roads.
Production and export of timber, honey and rice in the eastern Moxico province, are also high on agenda.