Angola is a lower middle-income country located in southern Africa with a Gross Domestic Product of US$106 billion, a population of 35 million and a per capita income estimate of US$ 3,300 by end of 2022.   It is the sixth largest economy in sub-Saharan Africa. 

Angola’s economy is overwhelmingly driven by its oil sector. Oil production and its supporting activities contribute about 50 percent of GDP, more than 70 percent of government revenue, and more than 90 percent of the country’s exports. Angola is an Organization of Petroleum Exporting Countries (OPEC) member and subject to its direction regarding oil production levels. Its oil production output is around 1.16 million barrels per day (bpd). Angola’s oil production surpassed that of Nigeria (1.02 million bpd in May), making it the largest oil producer in sub-Saharan Africa, despite showing declines itself from 1.18 million barrels per day.[1]  The country also holds significant proven gas reserves and extensive mineral resources. Diamonds represent 5 percent of exports. Subsistence agriculture provides the main livelihood for most of the people, but half of the country’s food is still imported.

The economy of Angola accelerated in 2022 to 3% (from 1.2% in 2021) thanks to growth in non-oil sectors and a small increase of 0.5% in oil production. Agriculture and fisheries grew almost 4% and the services sector recovered to pre-COVID-19 levels. Construction activity expanded 5.5%, due to higher government investment. The airline industry grew rapidly post-pandemic leading transport sector growth of 31%. Diamonds and other minerals extraction registered the biggest drop, with a contraction of 28.3 percent. Other projections forecast Angola’s real GDP  increasing to 3.97 percent per year from 2023 to 2025.

Major international oil production companies active in Angola include:  Chevron, ExxonMobil, BP, and Total.  Angolan exports to the U.S. consist primarily of petroleum, with modest shipments of diamonds and wood.  Given the country’s stated focus on diversifying its economy and building domestic production capacity, medium-term potential for U.S. companies exists in agriculture, industry, mineral exploration and key infrastructure such as energy, water and transportation.

Total Angolan imports in 2022 were around 16.93 billion U.S. dollars. U.S. goods exports to Angola in 2022 were $653 million, up 46.7 percent ($208 million) from 2021. Angola remains the United States’ third largest export market in sub-Saharan Africa.  Food products, machinery, and chemical products were the main categories of U.S. exports to Angola in 2022.  Leading countries supplying Angola’s imports in 2022 were China (24 percent), Portugal, India, Togo, Brazil, United Kingdom, and the United States. [2]

Angola exported US$ 45.4 billion in goods and services to world markets in 2022. Angola exports mostly crude oil (more than 90% of total exports) and small quantities of diamonds, coffee, sisal, and fish. Angola’s main export partners are China (more than 40% of total exports), followed by the United States, India, France, Taiwan, and South Africa.

Angola achieved its independence from Portugal in 1975, then immediately entered a civil war that ended in 2002.

Angola is designated as one of the United States’ three strategic partners in sub-Saharan Africa, along with Nigeria and South Africa.  General elections for the 2022-2026 legislative period took place on August 24, 2022, and President João Lourenço was re-elected.  The President is now on his last term.

Leading reasons to consider the Angolan market for U.S. export expansion include:

• Angola represents a large market, with a population of 35 million and a GDP of US$ 106 billion. It is the sixth largest economy in sub-Saharan Africa, so it is a logical next market for U.S. companies active in other countries in the region.
• Angola is experiencing an economic recovery following a significant recession and has increased purchasing power and exports due largely to the oil sector’s recovery.
• Angola imports most products due to its low capacity to produce locally.  While an effort is underway to build domestic production capacities, it will require many years and depend on international suppliers of key inputs for infrastructure, manufacturing and agricultural development, thus driving demand for imports.
• Angolan government and industry leaders exhibit strong interest in the United States and private-sector led growth.  Angolan private companies are eager to engage directly with U.S. companies and gain exposure to U.S. equipment, technologies and solutions related to priority economic sectors.
• The U.S. Commercial Service, at the U.S. Embassy in Angola is available to assist U.S. companies understand the business environment and find local partners and sales opportunities.
• Under President Lourenco, the Government of Angola has taken steps to engage in economic reform, including privatizing State-Owned Enterprises (SOEs), prioritizing efforts to combat corruption, and increasing engagement with the U.S. government and private sector on commercial issues.
• Angola benefits from eligibility for benefits under the African Growth and Opportunity Act (AGOA), through which it is able to export over 6,000 qualifying goods to the United States duty-free.  Oil is currently the primary export from Angola to the United States under AGOA.  However, as Angola works to diversify its economy, AGOA may provide opportunities in a number of other sectors.

Political Environment

For background on Angola’s political environment, please visit the U.S. Department of State Website.

[1] OPEC Monthly Oil Market Report for June 2022

[2] Bureau of National Affairs, 2021