Angola plans to raise about $1.7 billion on international capital markets in 2026, according to the government’s annual debt plan released on Tuesday, as the oil-producing nation grapples with mounting debt-service costs and sluggish economic growth.

The document also outlines plans to secure around $1.4 billion in commercial financing, including debt-for-health swap operations, as well as $500 million from World Bank Development Policy Operations, as authorities seek to stabilize public finances and sustain essential spending.

Angola, sub-Saharan Africa’s second-largest oil producer, remains under intense fiscal strain, with debt servicing projected to absorb more than 40 percent of total government expenditure this year, sharply limiting room for social and development spending.

The International Monetary Fund said in December that Angola’s economic growth is expected to remain subdued at about 2 percent this year, with any gradual recovery over the medium term hinging on progress in diversifying an economy long dependent on oil exports.

In response, the government has accelerated efforts to cut fuel and other subsidies while pushing reforms to open up its state-dominated economy to private investment, aiming to strengthen revenue, reduce vulnerabilities, and restore investor confidence.

Edited by CGTN Africa reporter Marion Gachuhi.