Financial Sector Overview
Despite being a Lusophone country sandwiched between Anglophone and Francophone countries, Angola plays a vital role in Southern Africa. It is a member of the Community of Portuguese Language Countries and the Southern African Development Community and is a signatory to the African Continental Free Trade Agreement. In efforts to open Angola’s borders, a 2018 law allows for exemption and facilitated tourist visa processing. Angola is projected to emerge from recession with real GDP growth of 1.2% in 2019 and 3.2% in 2020. The recovery will be driven mainly by the production and export of diamonds (growing by 8.2%), agriculture (5%), and construction (2.1%). Changing to a floating exchange regime in 2019 could eventually eliminate the gap between the official and parallel market exchange rates. A 14% value added tax to be introduced in July 2019 will also mobilize domestic resources.