Between January and April 2025, the Angolan Treasury issued AOA 1.6 trillion in domestic debt – a 33% year-on-year increase that underscores the government’s accelerating reliance on local-currency instruments to finance development spending while reducing external exposure. Fixed income is not merely one segment of BODIVA; repos and outright trades in government securities account for approximately 84% of all exchange turnover, making the debt market the gravitational centre of Angolan capital markets.
The Instruments at a Glance
Angola’s domestic debt architecture rests on three pillars. Treasury Bills (Bilhetes do Tesouro, BT) cover the short end of the curve with maturities of 28, 63, 91, 182, and 364 days, functioning as the primary vehicle for monetary-policy transmission and bank liquidity management. Treasury Bonds (Obrigacoes do Tesouro Nao Reajustaveis, OTNR) span 2 to 20 years and carry fixed semi-annual coupons, forming the backbone of medium- and long-term government financing. A third category, exchange-rate-indexed bonds (Obrigacoes do Tesouro Indexadas, OTX), adjusts principal for USD/AOA movements, offering investors a partial hedge against kwanza depreciation.
In the January-April 2025 issuance window, treasury bonds captured 56% of total volume while treasury bills represented 44% – a deliberate shift toward longer tenors that reflects the Ministry of Finance’s strategy to extend the average maturity of domestic debt and reduce rollover risk.
Yield Environment
The Banco Nacional de Angola (BNA) holds its benchmark rate (taxa basica) at 17.5% as of early 2025. The 364-day BT clears at roughly 17.5%, while OTNR coupons at the 5-year tenor sit near 21% and the 10-year around 22%. These nominal yields must be read against an inflation backdrop that has been trending downward – consumer price growth decelerated to approximately 27% year-on-year in late 2024 – meaning real returns on longer-dated instruments are beginning to approach positive territory for the first time in several years.
| Indicator | Value | Source |
|---|---|---|
| BNA Base Rate (Taxa Basica) | 17.5% | BNA, 2025 |
| BT 91-day Yield | ~18.5% | Ministry of Finance auctions |
| BT 364-day Yield | ~17.5% | Ministry of Finance auctions |
| OTNR 5-Year Coupon | ~21.0% | BODIVA secondary market |
| OTNR 10-Year Coupon | ~22.0% | BODIVA secondary market |
| Jan-Apr 2025 Issuance | AOA 1.6 trillion | Ministry of Finance |
| BT Share of Issuance | 44% | Ministry of Finance |
| OT Share of Issuance | 56% | Ministry of Finance |
For a deeper examination of the monetary-policy channel driving these rates, see the BNA Monetary Policy Tracker.
Market Structure and Access
Primary issuance takes place through competitive auctions conducted by the BNA on behalf of the Treasury. Licensed banks and broker-dealers submit price-quantity bids, with results published within hours. Since the launch of the Portal do Investidor – the Ministry of Finance’s retail investment platform – individual Angolan residents and diaspora investors have been able to purchase government securities directly, bypassing traditional bank intermediation.
Secondary trading occurs on BODIVA, though liquidity remains concentrated in shorter-dated instruments. Settlement runs through the CEVAMA central securities depository, typically on a T+2 cycle for secondary transactions. The repo market, where institutions use government bonds as collateral for short-term funding, accounts for the largest share of daily turnover and serves as the de facto interbank funding benchmark.
Tax Treatment
Interest income and capital gains on government securities are subject to the Capital Application Tax (Imposto de Aplicacao de Capitais, IAC) at a headline rate of 15%. Foreign investors face the same statutory rate, though Angola’s expanding network of bilateral tax treaties may provide partial relief in certain jurisdictions. The IAC framework applies uniformly across BTs, OTNRs, and OTX instruments. Notably, Aviso 15/19 provides exemptions for certain capital-market transactions that the CMC is actively working to extend.
Why It Matters
Angola’s fixed-income market is the entry point for most institutional capital flowing into the country’s capital markets. For pension funds, insurance companies, and commercial banks, government bonds represent the dominant asset class – and the only one with meaningful secondary-market liquidity. As the equity market matures with new IPO listings, fixed income will continue to set the pricing benchmarks and risk-free rates against which all other Angolan assets are valued. Investors tracking Angola’s trajectory from frontier to investable market should start here.