FGC-Backed lending helps sustain Angola’s 5.32% economic growth at the start of 2026

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LAGOS — Angola’s economy expanded by 5.32% in the first quarter of 2026, underscoring a gradual but increasingly visible shift in the structure of the country’s growth model. While oil remains an important pillar of economic activity, the latest data from the National Statistics Institute (INE) show that non-oil sectors are assuming a greater role in generating output, employment and private investment.

A key driver behind this momentum has been the expansion of business financing supported by the Credit Guarantee Fund (FGC), which facilitated more than Kz 144 billion ($ equivalent) in financing during 2025. The institution backed thousands of domestic enterprises, helping channel capital into strategic productive sectors and strengthening private-sector participation in the economy.

The growth performance came despite a 0.21% contraction in the oil sector, while non-oil activities expanded by 6.22%, reinforcing a trend that has been building over recent years: Angola’s economic growth is becoming increasingly linked to domestic production rather than crude oil exports.

The scale of the FGC’s intervention highlights the growing importance of risk-sharing mechanisms in supporting investment. During 2025, the fund guaranteed 10,648 credit operations, mobilizing more than Kz 144 billion through commercial banks and microcredit institutions.

The financing supported investments across agriculture, agro-industry, manufacturing, trade, fisheries, logistics and services. Average risk coverage stood at approximately 71%, reducing lenders’ exposure and improving access to financing for businesses that previously faced significant barriers to credit.

Economists view the guarantee scheme as an important catalyst for private investment in a market where borrowing costs remain among the most significant constraints on business expansion.

Agriculture continues to emerge as one of the strongest pillars of Angola’s economic diversification strategy. National accounts data show that agriculture and forestry generated approximately Kz 6.98 trillion during the first quarter, representing 20.52% of gross domestic product and making it the country’s largest economic activity by gross value added.

The performance coincided with FGC support for 1,381 agricultural projects, which mobilized roughly Kz 34 billion in financing. Agricultural and fisheries activities expanded by 8.73% year-on-year, highlighting the growing relationship between access to credit, increased domestic production and improved food supply.

For thousands of rural producers, financing has enabled the acquisition of equipment, expansion of cultivated land, greater mechanization and productivity gains, contributing to broader efforts to strengthen food security and reduce import dependence.

Manufacturing was another major beneficiary of public guarantee mechanisms. More than 1,314 industrial projects received FGC-backed financing, mobilizing approximately Kz 60.9 billion.

The sector remains central to Angola’s industrialization agenda, which seeks to reduce import dependency, increase domestic value addition and create skilled employment opportunities. Economic data suggest that the gradual expansion of productive capacity is beginning to generate measurable changes in the country’s economic structure.

By processing agricultural, mineral and fisheries products domestically, manufacturers are retaining a larger share of value within the economy while reducing foreign-currency outflows associated with imported goods.

The economic impact of the financing extends beyond production growth. Projects supported by the FGC generated 21,778 jobs during 2025, reinforcing the role of private enterprise development in addressing one of Angola’s most pressing socio-economic challenges.

Each newly financed business creates opportunities not only for employees but also for suppliers, transport operators, traders and service providers. As a result, the multiplier effect of credit significantly exceeds the original value of the financing provided.

According to INE data, the sectors contributing most strongly to Angola’s economic expansion in the first quarter were Information and Communication, which grew by 27.63% year-on-year, followed by Transport and Storage, which expanded by 16.12%.

Agriculture and Fisheries maintained robust momentum with growth of 8.73%, while Electricity, Water and Sanitation increased by 8.15%. Across the productive economy, the non-oil sector consolidated its position as the principal engine of national growth, expanding by 6.22%.

Transport and Storage made the largest contribution to overall GDP growth, adding 1.80 percentage points to economic expansion. Improvements in logistics infrastructure, increased movement of goods and rising domestic production all contributed to the sector’s strong performance.

The figures illustrate how Angola’s economic landscape has evolved over the past decade. Whereas growth was once overwhelmingly dependent on oil production, agriculture now accounts for more than one-fifth of GDP, while trade represents nearly 19%. Telecommunications, manufacturing, transport and financial services continue to increase their share of economic activity.

The fact that the economy grew by 5.32% despite a contraction in the oil sector provides one of the clearest indicators yet that structural transformation is gaining traction.

For households and businesses, economic growth becomes meaningful when it translates into job creation, increased food production, greater availability of goods and services, higher incomes and stronger public revenues.

By supporting thousands of companies and individual entrepreneurs, the FGC is contributing directly to these outcomes through investments that strengthen domestic production and expand economic activity beyond oil.

The first-quarter figures suggest that Angola’s growth story is becoming increasingly tied to productive investment, entrepreneurship and private-sector development. More than a statistical achievement, the 5.32% expansion represents another signal that Africa’s second-largest oil producer is steadily building a more diversified, resilient and opportunity-driven economy.