1.The National Bank of Angola has played a central role in the evolution of the country’s financial system since its establishment in 1926. Could you highlight the main milestones in this journey and how the BNA has adapted to changes in the national and global economic landscape?

The National Bank of Angola, as the Central Bank of the Republic of Angola, was officially established in 1976, one year after the proclamation of National Independence. Since then, the BNA has undergone several transformations, reflecting the country’s economic and political changes.

One of the most significant moments was in 1977, with the introduction of the national currency, the Kwanza, named after Angola’s largest river. This event marked an essential step toward monetary sovereignty.

Another major milestone occurred in 1991, when Angola implemented an economic and financial recovery program, resulting in a two-tier banking system. Until then, the BNA performed both central banking and commercial functions. With the new structure, the BNA focused solely on monetary authority and financial regulation.

In 1997, the BNA became an independent Central Bank, reinforcing its macroeconomic role. Then in 1999, monetary and exchange reforms were implemented to pave the way for financial market liberalization.

Most recently, in 2021, the revised Constitution reaffirmed the BNA’s independence. Law no. 24/21, enacted on July 18, established the BNA’s primary mission as maintaining price stability to preserve the value of the national currency and the financial system. This autonomy is crucial for ensuring decisions are made free of political or external interference.

2. Inflation and currency depreciation are challenges for any developing economy. Considering the Kwanza’s trajectory, what are the BNA’s main strategies to ensure its stability and control inflation, especially given the volatility of international markets?

Price stability is our top priority. Although inflation remains high, we’ve made notable progress. In 2023, inflation peaked at 31% in July but dropped to 27.5% by year-end. Our target is to reduce it to 17.5% by the end of 2025.

One major driver of inflation in Angola is the supply of essential goods—especially food. The food and non-alcoholic beverages category accounts for 55% of the consumer price index and can contribute up to 65% of inflation. Any disruption in food supply has an immediate effect on prices.

To address this, the BNA supports government initiatives aimed at boosting domestic production of essential goods. We also manage economic liquidity to avoid excess money circulation that could drive prices upward.

Another essential element is strengthening international reserves. In 2023, we increased reserves to $15.7 billion, enough to cover more than eight months of imports—boosting Angola’s resilience to external shocks and increasing confidence in the Kwanza.

3. Following the government’s efforts to diversify the economy, how is the BNA helping reduce dependence on the oil sector and encouraging financing for agriculture, industry, and services? Are there specific measures to expand credit to the productive sector?

The banking sector is vital to economic development. Commercial banks need to convert deposits into productive loans, but Angola’s credit-to-deposit ratio is still low—around 40%.

To address this, we issued BNA Notice 10, allowing commercial banks to use part of their mandatory reserves to finance strategic sectors like agriculture, livestock, and fisheries.

This has been effective. In 2023, we saw a 29% increase in credit to the productive sector—without disrupting inflation control. These loans focus on producing essential goods, improving supply-demand balance.

Moreover, interest on these loans is set at 7.5%, significantly below typical market rates, which are higher due to inflation. This creates a strong incentive to grow the productive sector.

4. The financial inclusion rate in Angola is 49.1%, and many citizens still lack access to banking services. How is the BNA promoting digitalization and expanding access, especially in rural areas?

Financial inclusion is a key priority in our 2023–2028 Strategic Plan. Our goal is to raise the inclusion rate to over 60% by the end of this period.

To reach that goal, we developed a National Financial Inclusion Strategy with support from the World Bank and the Angolan Government. A central focus is the digitalization of banking services so Angolans can access them without needing physical bank branches.

We are implementing interoperability between commercial banks and mobile payment providers. The “KWiK – Instant Kwanza” app, for instance, enables transfers and payments across different platforms.

5. Foreign investment is critical for Angola’s economic growth. What is the BNA doing to make the financial system more attractive to investors?

Angola is open to global investors and offers significant opportunities.

We emphasize the importance of increasing domestic production of essential goods. Angola has vast arable land and abundant water resources. All of our rivers originate and end within our borders, minimizing conflict potential with neighboring countries.

Angola has seen major infrastructure investments—especially in electricity production and distribution. Transport and communication infrastructure is also improving. These developments lay the groundwork for economic activity.

Since 2018, Angola has undergone deep financial liberalization. Foreign investors no longer require BNA approval to move funds within the country—only statistical registration of transactions is needed for monitoring.

Another priority is combating money laundering and terrorist financing. We’ve implemented strict regulations to ensure commercial banks meet international standards, bolstering investor confidence in the Angolan financial system

6. Looking ahead, what are the BNA’s main goals for the coming decades?

Our biggest target is to achieve single-digit inflation by 2028, creating a predictable economic environment for investors and entrepreneurs.

We’ll also continue to strengthen the banking sector by requiring commercial banks to increase capitalization and by implementing reforms to make the financial system more resilient and efficient.