Luanda, November 7, 2024
Angola has achieved impressive economic progress, recording sustained growth fueled by both national and foreign investments and by the diversification of key sectors like agriculture, industry, energy, and infrastructure. With a growth rate of 4.1% in the second quarter of 2024, Angola stands out among African economies advancing in reducing oil dependency, establishing itself as a model of resilience and progress.
Agriculture and food security: 8.3% Growth in the agricultural sector
Agriculture has been a major engine of economic expansion, growing by 8.3% in 2024. The country’s investment in agricultural infrastructure, modern farming techniques, and crop diversity is helping transform Angola into a self-sustaining food producer. Corn production increased by 15% and bean and soy production rose by 12%, allowing Angola to cover over 70% of its basic food requirements with domestic production.
This shift has not only helped stabilize prices but has also reduced the need for costly food imports, saving the country millions and shielding it from fluctuations in global food prices.
The government’s focus on developing irrigation systems and sustainable farming practices is expected to further improve yields and secure Angola’s food self-sufficiency in the coming years.
Employment: Over 240,000 new jobs in 2024
Job creation has accelerated in Angola, with an average of 20,000 new formal jobs being created monthly in 2024. The agricultural sector alone, with ongoing expansions and modernization, has added over 120,000 direct and indirect jobs this year.
Industrial growth has also contributed significantly to reducing unemployment, which dropped to 28%—the lowest in nearly a decade. The government’s vocational training programs have provided thousands of citizens with skills tailored to meet industry needs, enhancing employability across regions and sectors.
By targeting rural communities and underprivileged populations, these job creation initiatives are fostering economic inclusivity and giving Angola’s youth a future grounded in opportunity and stability.
Falling inflation and rising purchasing power
A strong increase in domestic production combined with efficient management of strategic reserves has led to a drop in annual inflation from 18.3% in 2023 to 13.7% in 2024, with food inflation now at 11.5%. This has directly improved living standards for Angolans, as wages have grown by 8% on average due to government adjustments, and citizens now face fewer economic pressures.
The government’s targeted inflation control policies, particularly on essential goods, have also safeguarded households from price volatility, enabling families to access a greater variety of products and services.
Continued efforts to stabilize inflation and enhance purchasing power aim to strengthen consumer confidence and foster a healthy domestic market for locally produced goods.
International reserves and currency stability: $14.7 Billion in reserves
Angola’s economic resilience is bolstered by its international reserves, totaling $14.7 billion, which have helped maintain currency stability over the last 12 months. Following years of currency volatility, the Kwanza has remained relatively steady against the dollar, enabling businesses to plan for the long term and improving investor confidence.
Additionally, the central bank has implemented strategic policies to ensure adequate liquidity while avoiding excessive currency interventions. This prudent management not only supports Angola’s monetary policy but also attracts international investors seeking stability in emerging markets.
Angola’s commitment to maintaining robust reserves underscores its resilience to external shocks, providing a critical buffer against economic uncertainties.
Industry and Domestic Processing: 45% Growth in the Industrial Sector
Industrial production in Angola grew by 45% in 2024, driven by domestic processing of agricultural products and an increase in the manufacture of construction materials. Angola’s recent investments in infrastructure and technological upgrades are expanding industrial capabilities and adding value to its raw materials.
This strategy has reduced import reliance while improving the country’s trade balance, which now reflects a surplus of $1.2 billion. The government’s emphasis on domestic processing has also incentivized innovation, with industrial hubs and special economic zones emerging as engines of development.
Moving forward, Angola is expected to continue fostering an environment that attracts both local and foreign investments into the industrial sector, with an eye toward creating high-value export products.
Foreign investment: $3.5 Billion in 2024
Foreign direct investment (FDI) reached $3.5 billion in 2024, marking a 20% increase from the previous year. Renewable energy led in attracting investment, with approximately $800 million, followed by mining at $650 million, and agriculture at $500 million. This growth in FDI reflects the increasing global confidence in Angola’s stable economic policies and its strong market potential. In addition to tax incentives, Angola’s recent regulatory reforms to protect investors and streamline administrative processes have made it an attractive destination for investment. The country’s diversified FDI portfolio further ensures that Angola’s economy remains dynamic and competitive on the global stage, offering robust opportunities across multiple sectors.
Energy and Sustainability: Expansion of renewable energy sources
In 2024, Angola took significant steps to boost renewable energy production, adding 500 MW of capacity to its grid, primarily from solar and wind projects. With an ambitious target of reaching 70% renewable energy in its electricity mix by 2030, the country has already achieved a milestone of 40% in 2024.
Projects like the 150 MW solar plant in Biopio are directly benefiting over 1.5 million people and creating a sustainable energy infrastructure that reduces reliance on fossil fuels.
The government has also partnered with private entities to finance large-scale projects, underscoring Angola’s commitment to sustainability and energy independence. These initiatives place Angola as a regional leader in renewable energy and offer a model for other nations aiming for greener economies.
Education and workforce development: 10,000 Scholarships in 2024
Angola has also invested in its human capital by offering 10,000 scholarships for technical and vocational training to strengthen the local workforce and prepare the youth for thriving sectors like technology, industry, and agriculture. The government has prioritized skill-building programs, benefiting over 50,000 people in rural areas this year.
These initiatives promote social and economic inclusion, fostering community development by equipping individuals with the skills needed to participate in the modern economy.
Angola’s focus on education and workforce development is not only improving employment opportunities but also helping build a skilled labor pool essential for sustainable economic growth.
Infrastructure expansion and logistics connectivity
In addition to strengthening its production base, Angola’s government has invested in transport and logistics infrastructure to facilitate the distribution of domestic products and enhance both internal and external trade. Expansion projects like the Lobito Corridor and Luanda Port are connecting production regions to markets and reducing logistics costs, making Angola more competitive within the region.
Infrastructure investments in 2024 surpassed $2.1 billion, increasing the country’s transport capacity by 18%. The development of roads, railways, and ports is positioning Angola as a logistics hub in Southern Africa, improving the country’s potential for trade and integration with regional partners.
Growing ICT Sector
Angola’s information and communication technology (ICT) sector has seen significant growth, expanding by 38% year-over-year. The government’s digitalization initiatives, aimed at modernizing public administration and education, have raised internet connectivity to 58% in 2024, with over 20 million Angolans now connected.
This expanded connectivity facilitates access to information and education and promotes digital entrepreneurship, which is creating thousands of jobs and driving innovation in the country.
In the near future, Angola plans to further invest in digital infrastructure, focusing on cybersecurity and expanding broadband access to rural areas to enhance inclusivity in the digital economy.
Regional context: Competitive growth and strategic partnerships
With a diversified and rapidly growing economy, Angola is attracting strategic partnerships with other African nations through trade agreements and technological cooperation programs. In 2024, Angola strengthened ties with major regional economies, such as South Africa and Nigeria, expanding trade by over 25%.
Angola’s active membership in regional blocs like the Southern African Development Community (SADC) is furthering regional integration and facilitating a common market that encourages the flow of goods and services.
These partnerships not only enhance Angola’s trade prospects but also enable knowledge-sharing, fostering regional economic cohesion and positioning Angola as a leader in the African economic landscape.
Angola’s economic policies, focused on diversification, transparency, and sustainability, are laying a foundation for a promising future. With ongoing investments in domestic production, inflation control, and sectoral development, the country is positioned to confront global challenges while ensuring that economic gains are equitably shared.
As Angola continues to promote inclusive policies, the nation’s progress is reshaping its economy, enhancing quality of life, and affirming Angola’s role as a resilient and forward-looking African economy.
