A sharp decline in the prices of crude oil has weakened Angola’s dollar inflows, dented the local kwanza currency, hammered public finances and prompted heavy government borrowing.

Angola needs to cut its expenditures to match falling oil sales revenue after the crude price drop, the Central Bank Governor told Mine web in an interview.

Jose Pedro de Morais added that Angola needs to adjust the parameters of the economy and the availability of money in foreign currency to end its currency crisis.

 “When an individual is poor, it adjusts its consumption pattern to the new level of income that you have. We need to adjust our consumption pattern. We need to find other sources of economic growth,” he said.

The International Monetary Fund (IMF) in August said that the Angolan economic growth is likely to slow to an average of 3.5 % a year between 2015 and 2016 from about 4 % last year as weaker oil prices bite.

Oil output represents 40% of GDP and over 95 % of export revenue.

De Morais further stated that Angola continues to get finance from international creditors because it is still seen as a viable investment destination despite oil price movements.

“We are a country viable and the donors are not stupid, they know that our potential is very great. We are focused on resolving the problem of structural adjustment of the economy in relation to these shocks in the price of oil.” He concluded

Angola’s central bank devaluated the kwanza by 6 % against the dollar in June and has raised interest rates twice due to dwindling oil prices.