Angola's high dollarization levels and low supply of foreign currency, as the government prioritizes external debt repayments, will prevent a more substantial improvement in broader economic conditions. Debt service costs likely peaked in 2023, but fiscal and external vulnerabilities remain high and susceptible to exchange rate and oil sector dynamics. Angola remains heavily reliant on oil, and we expect prices and production to remain supportive, with average oil prices staying broadly stable over 2024 and production of 1.0-1.1 million barrels per day through to 2027. We therefore affirmed our 'B-/B' long- and short-term sovereign credit ratings on Angola. The outlook remains stable. On Feb. 16, 2024, S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term sovereign credit ratings on
