Luanda, July 9, 2025 (Lusa) - Economist Alves da Rocha praised efforts to address inequalities in Angola on Wednesday and argued that if income distribution were more equitable, especially in terms of wages, the removal of state fuel subsidies would receive less social criticism.
Alves da Rocha said adjustments to fuel prices, with the withdrawal of state subsidies, are a measure that results from “necessary adjustments in economies”, such as in Angola, because economies must maintain balance.
“Economies have to make adjustments. There are adjustments to be made at both the macroeconomic and microeconomic levels. “Some adjustments require more time to implement and demand greater effort than others,” he said today.
Speaking to Lusa, when asked about the new fuel price increase in Angola, he said that the government measure contributes to the economic balance with a view to growth, provided officials implement it properly.
“But the fact is that economies must maintain balance,” he argued, pointing out that in terms of fuel prices, Angola “has always pursued balance with the rest of the world.”
He argued that the authorities should have adjusted fuel prices in Angola a long time ago, stressing that had they done so, the Angolan economy would probably have already absorbed any adverse effects of these adjustments.
“And so, obviously, when governments subsidise fuel, and fuel acts as a detail, a factor in the functioning of the economy and factories, there is a knock-on effect that will be reflected in inflation,” he said.
The director of the Centre for Scientific Studies and Research at the Catholic University of Angola (CEIC-UCAN) also considered that wages could mitigate the impact of fuel price adjustments and expressed a commitment to addressing inequalities in the country.
“What most concerns me here is the tremendous inequality that exists in Angola, between people, between sectors, but above all between people. And we can resolve these inequalities only with time, a lot of time,” he stressed.
He considered that Angola should have mitigated inequalities long ago, “because there was sufficient national income at the time”, and that Angola “is one of the most unequal countries in the world”.
“And to see this, you only have to look at the wage levels in Angola, at all levels, the amount of monthly and annual wages in all sectors and at all levels of the population, which are therefore wage levels that can rise to support the economy’s growth,” he insisted.
The economist explained that support for measures to remove state fuel subsidies reflects the current income distribution model in Angola, which, he pointed out, can become more equitable.
‘Naturally, the population is reacting rightly; they would remain calm if the social situation and the distribution of income in Angola were completely different,’ the economist stressed, noting that economies grow through more than investment.
Alves da Rocha also pointed to the need to think about income, “wages, the creation of endogenous national demand that enables private investment.” But for that, he concluded, “there must also be public investment in infrastructure.”
DAS/ADB // ADB.
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