Banco Nacional de Angola (BNA), the Central Bank of Angola’s, first and foremost objective is price stability. It also focuses its actions on strengthening supervision of banks and improving the regulatory framework for the banking sector.

To further ensure economic stability, since October 2017, Banco Nacional de Angola has pursued additional monetary and foreign exchange reforms. The con-duct of monetary policy has been simplified by replacing some instruments for others more in line with the current environment, such as adopting the monetary base as the operational variable to further enhance the mechanism of transmission to price stability.

Starting in January 2018, the peg to the dollar has been abandoned. The Kwanza is now floating against every currency traded in the local market and being semi-pegged to the Euro. The new exchange rate regime is now characterized as a managed floating regime. Its implementation has achieved a continuous reduction of the foreign exchange rate gap between the formal and informal market from 150% in Januay to 45% in July 2018. The Central Bank objective is to lower the gap to 20% by the end of this year. The new exchange rate regime has allowed more efficiency in the allocation of scarce international reserves.

The policies implemented in 2017 combined with the increase in foreign exchange sales (due to the recovery in oil prices) caused the inflation rate to recede, ending 2017 at 26.3% from 42% in 2016. The inflation rate, as of June 2018 is 19%. The Government’s goal for 2018 is an inflation rate of 23% at year’s end, caused by the effects of depreciation of the Kwanza and expected adjustments in domestic fuel prices and utility tariffs. Thus, in order to achieve this goal, the Government and BNA are expected to continue coordinating their policies (fiscal and monetary) to preserve the level of foreign reserves consistent with its growth objectives.

Current priorities in the banking sector are the improvement of competition in the sector, making banking products and services more accessible to a wider proportion of Angola’s population and business, increasing the lending segment of the banking sector and improving the regulatory framework for the banking sector. Banco Nacional de Angola acts as the supervisory authority in the Angolan banking sector.

Angola has taken significant steps to improve its banking regulations to bring them in line with internationally acceptable practices of banking regulation and supervision. Angola enacted several important pieces of banking legislation and has introduced regulations based on the principles of Basel II and Basel III. Additionally, the BNA has implemented a project to adopt the International Standards for Financial Reporting Standards. By the end of 2017 all banks oper-ating in Angola had adopted the International Financial Reporting Standards.

The banking system comprises 29 banks, of which three are state-owned, five are subsidiaries of foreign entities and the remainder are privately-owned Angolan banks. In addition, there is a development bank, the Banco de Desenvolvimento de Angola (BDA), which has as its main task to subsidize lending to the private sector. The banking sector has high levels of concentration, with six major banks: Banco Angolano de Investimentos (BAI), Banco do Fomento Angola (BFA), Banco de Poupança e Credito (BPC), Banco Internacional de Crédito (BIC), Banco Económico (BE) and Banco Millennium Atlântico (ATL); compris-ing 78.5% of deposits and 79.0% of loans in June 2018.

To keep on improving the financial sys-tem, the Comissão de Mercado de Capitais (CMC) was created to oversee the devel-opment of Angola’s capital markets, and the Angolan stock exchange, or Bolsa de Dívida e Valores de Angola (BODIVA). BODIVA has a management board which is responsible for ensuring the transparency, efficiency and security of transactions, encouraging the participation of small investors and competition between operators.

The outlook for the next years is promising. Economic growth is expected to be driven by an economic diversification program, supported by a stable macroeco-nomic environment. A more efficient foreign exchange allocation system by the BNA and additional foreign exchange availability due to higher oil prices, increased natural gas production approaching capacity levels, and improving business sen-timent will help to unleash economic growth.


Banco Nacional de Angola (BNA)