The downgrade is a blow to the oil-dependent southern African nation, which has been counting on a recovery in international markets to bolster its economic performance. Instead, a combination of weaker oil revenues and rising global interest rates has intensified pressure on government finances.

Angola’s Dollar-denominated bonds have also come under significant strain in recent weeks. Like several other smaller African economies, the country’s bonds were hit hard by the financial market instability that followed the United States decision to impose new trade tariffs in early April.

Investor unease escalated further when reports emerged that investment bank JPMorgan had requested an additional $200 million in collateral from Angola. The demand is tied to a $1 billion financing deal backed by the country's sovereign bonds, signalling heightened risk perceptions among creditors.

The IMF’s revised forecast underlines the challenges Angola faces in navigating external economic shocks. With oil accounting for the bulk of export earnings and budget revenue, any sustained pressure on crude prices could make it harder for the government to manage debt and support recovery efforts.

--Reuters/ChannelAfrica--