Angola - Financial Sector Assessment

Overview & Synopsis

This report presents the 2026 Financial Sector Assessment Program (FSAP) update for Angola, conducted jointly by the World Bank and the International Monetary Fund (IMF). The assessment evaluates the stability, resilience, and development of Angola’s financial sector and identifies key vulnerabilities, reform priorities, and policy recommendations to support economic diversification and inclusive growth. The report highlights that Angola has made significant progress since the 2011 FSAP by strengthening financial sector regulation, supervision, crisis management frameworks, deposit insurance, and capital market infrastructure. However, financial intermediation remains weak, access to finance is limited, and the financial system continues to be dominated by banks with strong exposure to the sovereign. Key risks include high levels of non-performing loans (NPLs), significant sovereign-bank linkages, dollarization, foreign exchange constraints, and weaknesses in anti-money laundering and counter-terrorism financing (AML/CFT) frameworks. The report also identifies emerging risks from climate change, weak financial inclusion, and limited access to financing for micro, small, and medium enterprises (MSMEs). Priority recommendations focus on strengthening banking supervision, accelerating NPL resolution, enhancing crisis management and financial safety nets, promoting digital financial inclusion, modernizing payment systems, expanding MSME access to finance, improving governance of state-owned financial institutions, strengthening insurance and pension sector oversight, and deepening capital markets. Successful implementation of these reforms is expected to improve financial stability, expand access to financial services, mobilize private investment, and support Angola’s long-term economic diversification and sustainable development objectives.