The economy and the national budget of the south-west African country are heavily dependent on oil revenues. The diversification of the Angolan economy is therefore the key task. A long coastline with several harbours, fertile soils and good conditions for renewable energies and green hydrogen offer opportunities here.

Hope is raised by the fact that the government is pushing ahead with business-friendly reforms, expanding the infrastructure and has a track record of success in the fight against corruption. The risk factors include inefficient administration, high levels of debt and the persistent problem of corruption despite the progress made.

The energy sector is particularly interesting for foreign investors: Angola’s installed capacity is set to increase from 5.9 to 9.9 gigawatts by 2025. Agriculture is also set to grow strongly: Over the next three years, the total area under cultivation for wheat, rice, millet and soya is set to grow by two million hectares. In addition, more value creation is to take place locally.

Economy. According to the IMF, the economy in Angola grew by 3.5 percent in 2023. For the current year, economists have calculated a growth rate of 3.7 percent. The gross domestic product per capita rose from the equivalent of 1810 to 3205 dollars since 2016.

However, it has still not returned to previous levels: Between 2000 and 2012, GDP per capita rose from 557 to 5084 dollars before the oil price collapse hit the country with full force. Inflation has recently been at a level of around 11 percent. Public debt is at 63 percent of GDP.

Population. Angola has around 36 million inhabitants. Annual population growth has declined from 3.8 to 3.1 percent in the last ten years. In the same period, the fertility rate has fallen from 6.0 to 5.3 children per woman (which is still a very high figure). Life expectancy was at 62 years recently. 49 percent of Angolans have access to electricity (twenty years ago, it was 207 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Angola ranks 121th out of 180. The score of 33 points brings the country to the same level as Peru, Mongolia and Uzbekistan. However, the progress made in the last eight years is impressive: in 2015, the TI-score was at 15 points.

Sources and further information:

World Bank: https://data.worldbank.org/country/angola

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/angola

Germany Trade & Invest: https://www.gtai.de/resource/blob/15986/a86a7f17e7edfd24399a5a9939d5b2ef/GTAI-Wirtschaftsdaten_Dezember2023_Angola.pdf

Transparency International: https://www.transparency.org/en/cpi/2023/index/nga