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Angola stands at a pivotal juncture in 2025, as it endeavors to transition from an oil-dependent economy to a diversified and sustainable growth model. According to the World Bank's latest overview, the nation's economic strategy focuses on enhancing non-oil sectors, improving fiscal stability, and investing in human capital to foster inclusive development.
Despite economic reforms, poverty remains a pressing issue, with rates projected to stay around 36% by 2026. High inflation and limited growth in per capita GDP underscore the need for a stronger social safety net and increased development spending . Programs like the Kwenda social protection initiative provide cash transfers and access to health and education services, aiming to build community resilience and reduce poverty
Economic Outlook: Navigating Post-Oil Challenges
Angola's GDP growth is projected to moderate to 2.7% in 2025, influenced by anticipated lower global oil prices and subsequent reductions in fiscal spending. Despite these challenges, medium-term growth is expected to stabilize around 2.9% annually, driven by the expansion of non-oil sectors such as agriculture, manufacturing, and services .
The country's fiscal health shows signs of improvement, with the overall balance projected at 2% of GDP over 2025–27 and public debt-to-GDP expected to decline to approximately 70% by 2026–27. External balances remain robust, with international reserves covering over seven months of imports .
Infrastructure and Energy: Building Foundations for Growth
Significant investments in infrastructure are central to Angola's diversification efforts. Projects such as the Angola-Zambia Oil Pipeline (AZOP) aim to enhance regional energy security and reduce dependency on imported refined products. Additionally, the development of hydropower facilities and solar energy projects, like the large-scale solar farm in Benguela province, are set to increase domestic energy production and support industrial growth.
Empowering Youth: Investing in Human Capital
Recognizing the importance of human capital, the World Bank approved $250 million in financing for the Angola Youth Employment Opportunities Project (AYEOP) in March 2025. This initiative aims to increase productivity and access to employment opportunities for youth by addressing barriers to wage jobs and entrepreneurship through coordinated interventions .
Social Development: Addressing Poverty and Inequality
Despite economic reforms, poverty remains a pressing issue, with rates projected to stay around 36% by 2026. High inflation and limited growth in per capita GDP underscore the need for a stronger social safety net and increased development spending . Programs like the Kwenda social protection initiative provide cash transfers and access to health and education services, aiming to build community resilience and reduce poverty.
