Angola Economic Outlook Infrastructure and Industrial Developments - Edition 2025

Overview

Angola Economy Performance

Angola’s economic landscape is experiencing a significant structural transformation, moving away from its traditional dependence on crude oil exports toward a growth model driven by infrastructure and industrial development. Following the post-COVID recovery phase and strategic reforms outlined in the National Development Plan (2023–2027), the country has seen an acceleration in investments across key sectors such as energy, transport, housing, and manufacturing. The government’s priority remains on boosting self-sufficiency, promoting local value addition, and strengthening regional trade integration.

Strongest Growth Since 2014, But Outlook Remains Uneven

Angola’s GDP growth surged from 1% in 2023 to 4.5% in 2024, marking its strongest economic performance in a decade. This growth was driven by expansions in the oil, diamond, agriculture, and services sectors. However, the growth rate is expected to moderate in 2025 as the non-oil sectors take a leading role amid stagnation in oil production. The country’s macroeconomic path continues to be shaped by its structural reliance on hydrocarbons.

Rising Poverty and Reduced Purchasing Power

Despite overall GDP growth, elevated inflation and low per capita income have undermined consumer confidence, which is now at its lowest level since 2020. In 2025, more than one-third of Angola’s population is projected to live on less than USD 2.15 per day. In response, the Kwenda cash transfer program has been expanded to support vulnerable households in urban and peri-urban areas, especially following subsidy reductions.

Fiscal Strain from Oil Price Volatility

Oil accounts for 28.9% of Angola’s GDP and represents 95% of its exports, leaving the country highly exposed to fluctuations in global oil prices. In 2025, the national budget was based on an assumed oil price of USD 70 per barrel; however, current prices have dipped below USD 60, creating considerable fiscal pressure. This shortfall has led the government to consider supplementary budgets and seek alternative financing sources.

Angola Economic Diversification Gaining Momentum

Amid declining oil production and the global push for decarbonization, Angola is intensifying efforts to diversify its economy. Agriculture has surpassed overall GDP growth for four consecutive years. Significant domestic investments in agro-processing and logistics, highlighted by the Lobito Corridor public-private partnership (PPP), demonstrate the government’s commitment to transition from an extractive-driven economy to one focused on productive sectors.

Scope of Work for Angola Economic Outlook Infrastructure and Industrial Developments – Edition 2025

Makreo Research introduces its latest report, "Angola Economic Outlook Infrastructure and Industrial Developments-Edition 2025," delivering a thorough assessment of Angola’s transition beyond oil dependency. This study examines key macroeconomic indicators, trade dynamics, regional economic zones, and significant sectoral transformations, emphasizing infrastructure growth, investment patterns, and industrial expansion. The report offers essential insights for investors and stakeholders seeking to navigate Angola’s shifting economic landscape and future investment opportunities.

Angola Macroeconomic Overview and Political Economy

The report opens with an analysis of Angola’s macroeconomic performance, focusing on GDP growth trends, inflation challenges, and fiscal vulnerabilities. Amid ongoing oil price pressures and elevated public debt, the study examines Angola’s shift toward a diversified, non-oil economy.

Angola Trade and Foreign Investment Trends

This section examines Angola’s trade patterns and foreign direct investment (FDI) environment. It highlights the ongoing impact of Angola’s dependence on oil exports on its external sector, while also emphasizing the growth of non-oil trade and emerging cross-border investment corridors.

Regional Economic Landscape - Angola’s Provinces and Growth Corridors

The report provides a geographic analysis of economic activities across Angola’s key regions, emphasizing Luanda and Lubango. It highlights the concentration of infrastructure, industrial operations, and urban development within these areas.

Sectoral Developments and Investment Landscape in Angola

This section consolidates Angola’s significant sectoral changes and funding activities, providing a timeline-based overview of major financial movements.

• Tracks mergers, acquisitions, disinvestments, and private equity transactions

• Profiles new investments, seed funding rounds, and public-private partnerships (PPPs)

• Presents a chronological funding timeline covering sovereign and blended finance mechanisms

Angola Infrastructure and Urban Development Outlook

Angola is making substantial investments in physical infrastructure to drive economic growth. The study assesses the scale, scope, and strategic importance of key projects across transport, energy, housing, and urban planning sectors.

• Transport infrastructure: Upgrades in road, rail, air, and marine networks

• Energy projects: Significant renewable energy initiatives, regional energy integration, and emerging opportunities

• Urban development: Investments in commercial and residential real estate, with a focus on Luanda and Lubango

In-Depth Industry Analysis for Angola 2025

This section delivers a comprehensive evaluation of Angola’s core industries, focusing on growth potential, regulatory environment, and investment prospects:

• Agriculture and Food Processing Sector

• Oil, Gas, and Mining Industry

• Manufacturing and Information & Communication Technology (ICT)

• Tourism and Financial Service

• Other Key Industries

Angola Key Sectoral Developments and Funding Landscape

Access Bank Group’s Regional Expansion through Standard Chartered Acquisitions

In 2024, Access Bank Group announced its strategic move to acquire Standard Chartered’s shareholding in its subsidiaries across Angola, Cameroon, Gambia, Sierra Leone, and Tanzania. This acquisition is part of Access Bank’s broader ambition to strengthen its sub-Saharan African presence and enhance its cross-border banking capabilities.

International Holding Company (IHC) Expands Mining Investments in Angola

As part of a USD 1 billion investment initiative, the International Holding Company (IHC), through its subsidiary International Resources Holdings, has signed agreements to develop iron ore mining projects in Kassala Kitungo and Munenga, Angola. These joint ventures, signed in 2024, are part of IHC’s strategy to broaden its mining footprint across Africa, with Angola being a critical component due to its untapped mineral potential.

Nastopni.ua Secures Seed Funding to Drive Digital Public Services in Angola

In 2025, Nastopni.ua, a public service-focused initiative, secured USD 4.5 million in seed funding to support its mission of transforming government-citizen interaction in Angola. The project aims to enhance public service delivery by leveraging digital platforms, improving administrative infrastructure, and fostering inclusive, tech-enabled citizen engagement.