Angola is facing a currency crisis as the kwanza hits a 25-year low at 939.24 per US dollar, reflecting deeper economic and political issues. Since January, the kwanza has lost 11% of its value against the dollar due to oil price fluctuations impacting the nation’s economy.

Angola’s debt burden has skyrocketed, owing Chinese creditors $17 billion with $3.1 billion in loan amortizations due in 2024. The country’s total payments to external creditors, including Chinese ones, are estimated at $10.1 billion for the year, leading to dwindling foreign currency reserves.

The strong US dollar has added pressure to Angola’s external debt and currency, exacerbating economic woes. The government faces liquidity issues, resulting in delayed payments to public sector employees and payment with Treasury bonds to local suppliers.

Furthermore, Angola’s political landscape under President João Lourenço shows increasing authoritarianism, raising concerns about democratic values and human rights violations. This political instability, coupled with economic challenges, has sparked social unrest and driven skilled Angolans abroad, worsening the nation’s brain drain.

As the kwanza falls, confidence in Angola’s economic future declines amid mounting debt, oil dependence, and political repression.