Angola’s public debt accelerated again at the beginning of 2026 and now represents a burden of USD 1,856 per citizen, of which USD 1,278 corresponds to external debt, according to calculations based on budget execution reports and data released by the Ministry of Finance.
The figure represents a significant deterioration compared to last year. At the end of the first half of 2025, according to data published by Expansão newspaper, each Angolan owed approximately USD 1,310 to foreign creditors, when the stock of external debt stood at USD 47.402 billion. Although external debt recorded a slight decline during that period, the trend reversed in the following months and resumed its upward trajectory, reaching USD 49.838 billion by the end of the first quarter of 2026.
When total debt—both external and domestic—is taken into account, the burden on the population becomes even more significant. With an estimated population of 38.8 million people, Angola’s public debt bill now amounts to nearly USD 2,000 per citizen, a particularly notable figure in a country where average income remains well below that level.
Debt Grows 11% in One Year
Angola’s total public debt stock increased from USD 64.808 billion at the end of the first quarter of 2025 to USD 71.979 billion in March 2026, representing an annual increase of 11%, equivalent to an additional USD 7.175 billion.
This increase interrupts the downward trend observed in previous years and brings public debt back to levels similar to those recorded at the end of 2022, when the total amount still exceeded USD 70 billion.
Compared to the end of 2025, debt increased by USD 3.816 billion, of which USD 2.818 billion was external debt and USD 998 million was domestic debt.
Eurobonds Become the Largest Creditor
A large part of the growth in external debt is linked to the issuance of new Eurobonds in March this year. The Angolan government raised USD 2.5 billion on international markets through two bond issuances: one tranche of USD 1.5 billion with a seven-year maturity and an interest rate of 9.25%, and another tranche of USD 1 billion with an eleven-year maturity carrying an interest rate of 9.8%.
Although part of the operation was used to repurchase older bonds worth USD 500 million, the net effect was an increase of approximately USD 2 billion in Angola’s Eurobond stock.
As a result, Eurobond investors have become Angola’s largest creditors, surpassing institutions that had dominated the country’s debt portfolio for years.
Each Angolan now owes approximately USD 317 to Eurobond holders, an amount higher than the per capita debt owed to several multilateral institutions.
China’s Weight Declines but Remains Significant
Despite the gradual reduction of Angola’s exposure to China, the Asian country remains among Angola’s largest creditors.
According to the latest data, each Angolan owes approximately USD 306 to China, significantly lower than the USD 371 recorded in mid-2025 and the more than USD 800 recorded in 2017, when Chinese debt reached its peak.
Debt owed to the China Development Bank (CDB) has fallen to USD 6.498 billion, less than half of the USD 13.578 billion recorded at the end of 2021.
Nevertheless, when bilateral and commercial obligations are combined, Angola still owes approximately USD 11.882 billion to China.
The Problem Is Not Just the Debt, but How the Money Is Used
Experts warn that concern lies not only in the increase in indebtedness, but also in the way borrowed resources are being used.
Budget execution data show that the government continues to spend most of its tax revenue on current expenditures, including public sector wages, the purchase of goods and services, interest payments, and other administrative costs.
Without the capacity to generate significant public savings, the state increasingly relies on new borrowing to sustain day-to-day government operations and meet previous commitments.
This model creates a difficult cycle to break: the government incurs debt to finance current spending, thereby increasing the overall debt stock; subsequently, a growing share of revenue is allocated to debt servicing and repayments, reducing the resources available for productive investments and forcing the state to seek new loans.
More Than Half of Government Revenue Came from Borrowing
The figures for the first quarter of 2026 illustrate this dependence.
Approximately 56% of State Budget (OGE) revenues originated from financing operations, while nearly half of all expenditures were related to debt repayments, interest payments, and public debt commissions.
In economic terms, this situation is often described as “borrowing to finance current expenditure,” a practice generally considered unsustainable in the medium and long term.
Public Investment Remains Dependent on Borrowing
The government continues to maintain significant investments in infrastructure and public works, which are regarded as essential for economic and social development.
In 2025, approximately Kz 6.8 trillion was spent on public investment projects, exceeding the original budget allocation. For 2026, around Kz 5.4 trillion has been budgeted, of which Kz 1.7 trillion had already been executed during the first quarter.
However, nearly all of these investments continue to depend on external and domestic financing, largely because available tax revenue is absorbed by current expenditures and debt servicing obligations.
A Burden on Future Generations
Although the debt-to-GDP ratio remains at 46.4%, below the critical levels recorded in the past, economists warn that the recent trajectory deserves close attention.
The continued growth of debt, combined with high interest rates in international markets and the government’s inability to generate public savings, could transfer substantial financial burdens to future generations.
With each Angolan now carrying an average debt burden of USD 1,856, of which USD 1,278 is owed to foreign creditors, the challenge for the coming years will be not only to control debt growth, but also to ensure that borrowed resources are transformed into economic growth capable of sustaining their repayment.
06/08/2026
