Angola has taken steps to stabilize its economy and encourage diversification. However, the nation still heavily relies on the oil sector, which contributes around 30 percent of GDP, generates 65 percent of government revenue, and accounts for over 95 percent of goods exports. Meanwhile, the non-oil economy continues to grow slowly. Additionally, fluctuations in oil prices have led to economic instability and fiscal challenges, slowing overall economic activity.
The Country Economic Memorandum: Moving Beyond Oil serves as a strategic tool to assist Angola’s policymakers in advancing the economic diversification goals outlined in the National Development Plan (NDP) 2023–2027 and the long-term vision for 2050. It highlights three key challenges:
First, economic instability caused by dependence on oil and its volatility, which hinders the development of a strong private sector and job creation.
Second, low productivity among businesses due to a difficult operating environment.
Third, limited access to essential services such as electricity, transportation, and digital infrastructure, along with low levels of human capital.
As a result, poverty and inequality remain high. Around one-third of Angolans live below the international poverty line of USD 2.15 per day, and economic disparity is significant, reflected in a Gini index of approximately 0.51. Angola’s human capital index (HCI) of 0.36 is among the lowest in Sub-Saharan Africa. Unemployment disproportionately affects youth and women, with nearly one-third of the population unemployed. Moreover, about 80 percent of jobs exist in the informal sector.
To tackle these issues, the memorandum outlines a strategy for more sustainable and inclusive growth, making better use of existing resources while laying the groundwork for future prosperity. It focuses on three main policy priorities:
Maintaining macroeconomic stability through improved fiscal management.
Enhancing productivity to generate employment opportunities.
Expanding access to basic infrastructure and investing in human capital development.
The development of the Lobito Corridor presents a unique opportunity to accelerate economic transformation. With the right reforms, it could serve as a catalyst for diversifying Angola’s economy and integrating it into regional and global markets.
If Angola accelerates structural reforms targeting macroeconomic stability, productivity growth, and expansion of physical and human capital, economic growth could nearly double by 2050.
— news from World Bank
— News Original —
Angola Country Economic Memorandum: Moving Beyond Oil
Angola has implemented a series of reforms to restore macroeconomic stability and promote economic diversification. Despite these efforts by the authorities, excessive dependence on the oil sector remains a key challenge. Oil accounts for approximately 30 percent of GDP, 65 percent of revenues, and more than 95 percent of goods exports, while the growth of the non-oil economy remains weak. In addition, oil price shocks have translated into macroeconomic instability and fiscal crisis, slowing down the real economy.
The Country Economic Memorandum: Moving Beyond Oil serves as a diagnostic tool to support Angola’s policymakers in advancing the economic diversification agenda outlined in the National Development Plan (NDP) 2023–2027 and the Long-Term Vision (Angola 2050). It identifies three main challenges:
Macroeconomic instability from oil dependency and volatility – which has not helped develop a strong private sector and foster job creation.
Low productivity across firms, due to a challenging business environment.
Limited access to services like electricity, transport, and digital tools — and the low-level of human capital.
As a result, poverty and inequality are stubbornly high: Approximately one-third of Angolans live below the international poverty line (USD 2.15/ day), and economic inequality is substantial, as reflected by a Gini index of approximately 0.51. Additionally, Angola’s human capital index (HCI) of 0.36 is among the lowest in Sub-Saharan Africa. Unemployment has a significant impact on young people and women, with roughly one-third of the population unemployed. Moreover, approximately 80 percent of jobs are in the informal economy.
To address these challenges, the Country Economic Memorandum offers a roadmap toward a more sustainable and inclusive growth model, which makes better use of the country’s existing resources while also laying the foundation for future prosperity. It is built on three policy priorities:
Pursuing macroeconomic stability by improving macro-fiscal management.
Boosting productivity growth to create jobs.
Expanding access to basic infrastructure and invest in human capital.
The development of the Lobito Corridor also offers a unique opportunity to accelerate economic transformation. With the right reforms, it could be a catalyst for diversifying Angola’s economy and connecting it to regional and global markets.
Economic growth could nearly double by 2050 if the country accelerated implementation of structural reforms targeting macroeconomic stability; boosting productivity growth; expanding physical and human capital endowments; and making use of its substantial agricultural potential.