The Ministry of Finance is located in Luanda in Angola. It was designed mainly to replace the pre-colonial process in financial sustainability during colonization. The ministry initially started its operation around 1976. The ministry was introduced to maximize the use of the country’s economic resources. Its mission was to ensure equality in the distribution of income country-wide and also to control money policies and pricing of goods and services. The objective of this article is to discuss the importance of the ministry of finance and its economic reforms. The article also intends to discuss the mission and vision of the ministry toward optimum development.
Reform in Economic Practices in Angola
This article relates to historical data to discuss the advancements in economic practices that were initiated by the ministry of finance in Angola. It also considers the intersection between economic practices and social-cultural activities. This indicates since independence Angola, a country in Africa has recorded a constant improvement in economic practices. The government of Angola in conjunction with the Ministry of Finance strives to establish an effective economic relationship with nations. The Ministry of Finance intends to diminish all the outdated economic practices and adapt to new practices that are in accordance with international standards. The result of globalization in 1990, influenced the adoption of a market-oriented system of economy in Angola. The international trends cause an adverse impact on the economic practices and the government responded by impacting changes. As a result, the orientation of the market systems was adopted as a new practice. The market-oriented system imposes greater concern on customer satisfaction. It involved providing effective services to the customers and attending to their complaints. The impact of this was improved customer relations that led to product branding and marketing. Another reform that was established to adjust to globalization includes the improvement of public administration. This program started in 2002. This led to the establishment of rules on budget practices. The set rules were subjected to the international standard rules and aimed at promoting management activities in public finance. The rules also considered openness and control of expenditures. Discipline and corruption issues were also analyzed during the process of budgeting. All these practices were influenced by globalization, and this improved the economic practices in Angola. Several reforms that led to adverse improvements in economic activities were later introduced by the Ministry of Finance. In conclusion, it’s obvious that many reforms were influenced by international trends in economic activities.
Relevance of the Ministry of Finance in Angola
The current finance minister Vera Daves was ambitious toward an overall reconstruction of the economy of Angola. In her statement, she considered it an important step to restructure the economy due to the COVID 19 pandemic. The minister of finance gave reports during her interview with The African Report about the economic status after the COVID pandemic. She finally gave assurances of future plans for reconstructing the economy. This report gives clear evidence of the relevance of the ministry in providing annual statements of the economic status of the country. Moreover, it also indicates that it is the responsibility of the Ministry to provide solutions to any downfalls in the economy. In her statement, the finance minister claims to make future adjustments in the economic sector. Following the rise in oil price, the minister also promised to make adjustments in the next year’s budget. She claimed that the government will compensate for expenditure on oil with other contributions to the GDP. This is possible by revising and removing unnecessary expenditures in order to accumulate the rising price of oil. The statement explains how the ministry controls expenditure activities through the cutting and replacing methods. The expenditures that are considered important and effective are given priority over others. This ensures that the ministry applies the principle of opportunity cost, which is the choice of expenditures for the best-forgone alternatives. The importance of the ministry of finance is witnessed through several interviews with the minister of Finance. It’s evident that without the ministry most of the economic practices in Angola would suffer from strains and unfavorable competition from African countries. It is therefore important to appreciate its position in the economic practices in Angola.
Contact information of Ministry of Finance in Angola
Location: Edificio Do Minfin.
Phone: +244-222706000.
Website: www.minfin.gv.ao
