Institutional Resistance and Capacity Constraints in Public Sector Accounting Reform: Evidence from Angola

Abstract

Public sector accounting reform has been widely advocated as a tool to promote transparency and accountability in developing resource-dependent economies. Despite sustained advocacy for reform, the Republic of Angola still relies on a cash-based accounting system. This manuscript examines the foundations, barriers, and prospects of public sector accounting reform in Angola using Lüder’s Contingency Model. This study adopted a qualitative approach where interviews and questionnaires were used to collect data from relevant stakeholders in public financial management. The findings revealed that the barriers to public sector accounting reform are associated with institutional factors, historical factors, behavioural factors, and structural capacity factors. Despite international drivers and political commitment to public sector accounting reform, gaps in legal frameworks, organizational structure, human capacity, and technology continue to hinder implementation, making a phased approach the most feasible pathway for reform in Angola.