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Angola's president says the country is broke, faults state oil firm

Angola's president says the country is broke, faults state oil firm

Angola

Angola’s president Jose Eduardo Dos Santos has said that the country is broke.

According to media reports, Dos Santos blames the country’s economic crisis on failure of the national state company Sonangol to remit cash to the government.

Earlier this month, he fired Sonangol’s entire board and appointed his daughter Isabel dos Santos as chairwoman in what he said was part of a plan to restructure the business so that it runs more efficiently.

However, analysts say the move was to tighten his dynastic grip on sub- Saharan Africa’s third biggest economy, subsequently, pressure has been mounting on Isabel to step down.

While addressing a cabinet meeting, the 73 year old leader added that due to the fall in oil prices, Angola has no money to import goods since the economy is heavily reliant on imports.

Last week, the International Monetary Fund (IMF) said the Angolan economy continues to be severely impacted by the oil price shocks experienced in the recent past.

In 2015, economic growth slowed to 3 percent due to a sharp slowdown in the non-oil sector.

The southern Africa economy relies on crude exports for two thirds of tax revenue and 95 percent of its foreign currency reserves