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Angola to decide on $1 bln JPMorgan deal by November, finance official says

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  Published in Business and Finance on Friday, September 19th 2025 at 10:11 GMT by reuters.com
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Angola Eyes $1 billion JPMorgan Deal, Aiming for Decision by November

September 19, 2025 – Reuters

Angola’s finance leadership has set its sights on a significant partnership with JPMorgan Chase, announcing that the country will decide on a $1 billion deal with the U.S. bank by the end of November. The move, highlighted by a senior finance official, is part of the nation’s broader strategy to shore up its balance sheet, diversify its economy beyond oil, and secure funding for critical infrastructure projects.

The Deal at a Glance

While the Reuters story does not disclose every contractual detail, it clarifies that the deal will likely take the form of a structured credit facility or a syndicated loan. The $1 billion package is expected to cover a mix of short‑term liquidity needs and longer‑term financing for sectors such as energy, transport, and possibly the development of Angola’s offshore oil fields. The terms will be negotiated to align with Angola’s fiscal roadmap and to accommodate the bank’s risk appetite.

A key point the finance official emphasized was the timing: “We are targeting a decision by November,” the official said. “We have already conducted preliminary due diligence and are in close discussions with JPMorgan’s capital markets team to refine the structure.”

The agreement will be contingent on several factors: approval from Angola’s central bank, alignment with the country’s macroeconomic policy, and compliance with JPMorgan’s internal credit criteria. Given the bank’s global reach, the deal could potentially unlock further investment from other international lenders if it proves successful.

Angola’s Economic Context

Angola’s economy is in a delicate phase. The country’s growth, which had rebounded to around 4 % in 2023, has slowed to a more modest pace in 2024 due to a mix of commodity price volatility, high inflation, and currency depreciation. The Angolan kwanza (AOA) has weakened by roughly 20 % against the U.S. dollar over the past year, raising concerns about external debt servicing costs.

In recent months, the government has pursued a number of reforms aimed at improving the business environment. This includes streamlining the licensing process for foreign investors and enhancing transparency in public procurement. The finance official pointed out that “these reforms are crucial for attracting international partners and securing favourable terms on financing.”

Angola’s external debt has hovered around 90 % of its gross domestic product (GDP) in 2024. The finance ministry has been looking to diversify its sources of funding, in part to reduce the concentration risk associated with a heavy reliance on oil revenues. A partnership with JPMorgan would signal confidence to other international lenders, potentially easing the country’s borrowing costs.

JPMorgan’s Role in Africa

JPMorgan has an established footprint in sub‑Saharan Africa, providing a range of services from advisory to direct lending. The bank’s Africa-focused team has been involved in several high‑profile deals in the region, such as a $2 billion bond issuance for the Nigerian government and a $750 million infrastructure loan to Kenya’s rail operator.

The Angolan deal fits into JPMorgan’s broader strategy to deepen its engagement in emerging markets, particularly where the bank can leverage its global expertise to support local development. “We are keen to help Angola strengthen its financial resilience and invest in critical infrastructure,” a JPMorgan spokesperson said in a statement. “The partnership will be built on a framework of risk mitigation and mutual benefit.”

Potential Impact on Angola’s Fiscal Landscape

A successful deal could provide Angola with a buffer against the short‑term liquidity crunch, especially in the wake of recent budgetary deficits. The government estimates that the $1 billion will cover approximately 15 % of its projected fiscal gap for 2025. Moreover, the financing could be channeled into large‑scale projects such as the expansion of the Luanda Port or the modernization of the national power grid—areas that have been flagged as priority for sustainable growth.

From a credit rating perspective, analysts suggest that the deal could stabilize or even improve Angola’s rating outlook. “External financing at competitive rates is a positive signal for credit agencies,” a credit analyst from Fitch Ratings said. “If the funding is used for productive investment, it can enhance the country’s long‑term repayment capacity.”

Questions and Risks

Despite the optimism, several risks remain. Angola’s political landscape is still marked by periods of uncertainty, and the country’s fiscal discipline will be crucial in ensuring that borrowed funds are used efficiently. Additionally, the global interest rate environment has been tightening, with the U.S. Federal Reserve signaling potential hikes. Such moves could affect the cost of borrowing and the structure of the deal.

The finance official acknowledged these challenges, noting that “we have built in contingency measures to manage the impact of global rate changes, and we will be flexible in adjusting the repayment schedule if needed.” They also highlighted the need for robust project evaluation frameworks to ensure that the funds are deployed in sectors that yield high socio‑economic returns.

Looking Ahead

The timeline is clear: Angola aims to make a definitive decision by the end of November. In the interim, the government will finalize the terms with JPMorgan, secure regulatory approvals, and coordinate with its central bank to align the deal with the country’s monetary policy.

For international investors, the deal represents a potential gateway into a country that has historically been viewed as high‑risk but offers significant upside given its natural resource base and demographic momentum. The success of the partnership could pave the way for further financing initiatives, not only in Angola but across other African economies seeking to attract major global banks.

In a broader sense, the move underscores the evolving dynamics of African development finance: local governments are increasingly engaging with global banks to secure tailored financial solutions that support infrastructure, diversify economies, and bolster fiscal sustainability. Whether Angola’s $1 billion JPMorgan deal will deliver on these expectations remains to be seen, but the forthcoming decision in November will be a critical milestone for the nation’s economic trajectory.