Luanda, Nov. 20, 2025 (Lusa) - The Managing Director of the International Monetary Fund (IMF) argued on Thursday that fuel subsidies in Angola "benefit the richest people" and should be phased out gradually so that savings can be directed to the poorest families.
Kristalina Georgieva, who arrived in Angola on Wednesday, spoke to journalists after being received by the Angolan president João Lourenço at the Presidential Palace in Luanda.
She welcomed the reforms initiated in 2017, saying she was "very happy" that the IMF had been "able to support Angola through these reforms".
The managing director stressed that the government recognises that the economy needs public spending that "makes a difference in the lives of Angolans".
For this reason, she said, the IMF encourages the executive to "gradually withdraw subsidies that greatly benefit the richest people in Angola, and use these savings for the poorest people, for those who really need this support".
According to Georgieva, the government is determined to pursue this path "gradually and carefully," starting by "helping people who would be negatively affected by the withdrawal of subsidies" before moving forward with their definitive elimination.
She noted that "fuel subsidies cost 2.5% of Angola's GDP."
She asked: "Think about what could be done to create jobs for young people, to stimulate small businesses, to improve education with that money. And I always ask this question: why should the richest people benefit from cheap fuel? It should only be a benefit for the poorest people, who need it."
Kristalina Georgieva also stated that the government intends to first assess the effectiveness of social support for the most vulnerable families, highlighting that the Kwenda cash transfer programme "already supports 1.7 million people". Still, she acknowledges that "expanding support and making it effective is a major challenge".
"We want people to trust that those who are vulnerable will not suffer unnecessarily," she concluded.
The Director-General also thanked Angola "for its leadership of the African Union and its focus on infrastructure and connectivity, which are so important for the continent" and considered that "much has been achieved in terms of building the foundation for growth", stressing that "macroeconomic stability is essential to put the country back on the path to positive growth".
Georgieva added that reforms must continue in a world marked by rapid change. "Geopolitical transformation, technological transformation and climate shocks require countries to be resilient. It is essential to have strong economic performance, and that is what we support Angola to continue to do," she said.
As part of her visit to Angola, Kristalina Georgieva will meet today with students from the Catholic University of Angola and will then be welcomed at the headquarters of the urban mobility start-up ANDA.
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