- Angola’s push for removing all fuel subsidies by the end of 2025 is caused by a surge in debt, costs, and high pump prices.
- This fuel subsidy removal will help Sonangol pay taxes, improve profits, and pay dividends to the state.
The finance minister of Angola, Vera Daves de Sousa, has said that Angola will forge ahead with removing all fuel subsidies by the end of 2025. This should enable state oil company Sonangol to pay taxes and dividends again. Forced by surging debt costs and high pump prices, African governments are trying to scrap the costly benefits. But the moves are proving unpopular and have sparked discontent in countries including Senegal and Nigeria.
In October, Daves de Sousa stated that the complete removal of fuel subsidies might be slowed down beyond the end-2025 deadline. This is after their partial removal sparked deadly protests. She said, “We are taking out the fuel subsidies before the end of 2025; we expect to see this process stabilise and close as much as possible.” The finance minister said this would help Sonangol pay taxes, improve profits and pay dividends to the state. Sonangol imports refined petroleum products to the southern African OPEC member, which it sells locally at a lower price, with the government meant to reimburse the difference.
Furthermore, It last paid a dividend in 2019, the same year the government launched an ambitious privatisation programme. She stated that the company needs to continue cutting costs so that “starting in 2026, we will see a different Sonangol.” Daves de Sousa also said the government was considering a dual listing in 2025 or 2026 in Angola and on a yet-to-be-decided international bourse for the long-delayed partial privatisation of Sonangol.