LUSA 07/08/2025

Lusa - Business News - Angola: Government denies removing Cabinda air fare subsidy, just price changes

Luanda, July 7, 2025 (Lusa) - Angola's government said on Monday that there had been no removal of state subsidies on the Luanda-Cabinda air link, but there had been a change in regulations that would result in a new fare.

"Soon, we will publish a joint government decree, from the Ministry of Transport and the Ministry of Finance, which will establish a new fare for this route from Cabinda to Luanda and vice versa," said Angola's transport minister, Ricardo de Abreu, when questioned by Lusa today.

Ricardo de Abreu assured that there had been no removal of subsidies for tickets on this route, noting that the operation for Cabinda and Luanda continues to be subsidised, arguing that there had only been a change in the structure that currently regulates this subsidy.

"In practice, we are talking about a presidential decree dating from 2017 and over the past eight years we have had various details that today contribute to the price, even subsidised, not being the most appropriate either for the State, which subsidises it, or for the operators who benefit from or operate this same route," he explained, without going into details.

"Therefore, there is no change in the principle of the subsidy for Cabinda," insisted the minister, stressing that the government "is fully aware of the need to reduce the insularity" of Cabinda, in northern Angola.

To reduce the insularity of Cabinda, a region geographically disconnected from the other 20 provinces of Angola, "air transport is essential," noted Ricardo de Abreu, adding that state subsidies have had a "positive impact" at the local level.

"What we are going to do is adjust the price to what is possible for the operator within a sustainable framework," said the minister.

"If we look at the figures today, since the subsidy was implemented, we need to understand the positive impact this has had on Cabinda and its population, because today Cabinda is our second busiest airport in Angola, so this is the result of the subsidy," he pointed out.

Ricardo de Abreu was speaking today on the sidelines of the opening of the National Conference on Angola's Preparation for the World Maritime Organisation (IMO) audit, which runs on Monday and Tuesday in Luanda.

Last June, the Angolan President decided to end the subsidy scheme for air fares on the Luanda-Cabinda route, a measure which, according to the presidential decree, aims to maintain a balance between promoting connectivity and territorial cohesion.

João Lourenço justified the measure, saying that the current socio-economic context and the adoption of a prudent approach recommend a phased and planned transition to deal with the challenges and impacts associated with "the partial reduction of the subsidy until its complete elimination, allowing a balance between the promotion of connectivity and territorial cohesion, ensuring that the target beneficiary is the actual beneficiary and the responsible use of public resources".

The presidential measure has been widely criticised by civil society and the people of Cabinda.

Given the geographical discontinuity of the province of Cabinda with the rest of the country, the mobility of citizens to and from the province has been a subject of complaints, especially regarding air connections, which are often marked by flight suspensions and delays, generating criticism.

The average cost of a return trip to Cabinda is around €320.

DAS/ADB // ADB.

Lusa