Angola

Angola, officially the Republic of Angola, is a country in South-Central Africa bordered by Namibia to the south, Zambia to the east, the Democratic Republic of the Congo to the north, and the Atlantic Ocean to the west. Angola is made up of 21 provinces, after the 2024/25 administration reform, with Luanda as its capital. Portuguese is the official language of Angola, and the official currency is the kwanza (AOA). 

Angola is run by a multiparty regime, with its President as the chief of state. Its legal system is based on Portuguese civil law and customary law, modified to accommodate political pluralism and increased use of free markets.  

Due to its own characteristics, it could play a very important role in helping to meet some of these global challenges. Its soil and climate characteristics, the quality and richness of its soils, its young and growing population and its high potential for diversification and growth of the economy that is not dependent on oil, position Angola as one of the main countries in Africa and the world in which to invest. A country that can, in fact, respond to some of the global difficulties the world is going through, with the potential to become a leader in some products or sectors of activity.  

Since 2018, under President João Lourenço, Angola has been actively pursuing economic reforms aimed at diversifying its economy and reducing dependence on oil. Key initiatives include selling state stakes in various companies to attract foreign investment and boost economic efficiency (privatisations), efforts to simplify bureaucracy and enhance transparency, including adherence to the Extractive Industries Transparency Initiative (EITI) and promotion of sectors such as agriculture, mining, and tourism through infrastructure investments and fiscal incentives. 

Despite an international climate of high prices for raw materials and food products, Angola's has shown signs of economic recovery in 2023 e 2024.  

In 2024, the country recorded real GDP growth of approximately 4.4%, driven primarily by non-oil sectors such as agriculture, fisheries, industry, and trade. A key measure was the gradual removal of fuel subsidies, which freed substantial fiscal resources for investment in infrastructure and social programs while promoting greater energy efficiency. In the power sector, an amendment to the General Electricity Law was enacted to liberalize the market, enabling private concessions, bilateral power purchase agreements, and attracting capital for renewable energy projects. Angola has set ambitious targets for its energy transition, including achieving 73% renewable electricity generation by 2027 and adding 800 MW of solar capacity by 2025, complemented by hydropower, wind energy, and rural mini-grids. Concurrently, the government is improving the business environment, developing agro-industrial corridors and logistics infrastructure, and promoting tourism and mining as drivers of diversification. Despite these advances, challenges persist, such as high inflation, oil price volatility, and the need to strengthen human capital and infrastructure. Nevertheless, these reforms signal a clear trajectory toward a more resilient and sustainable economy. 

The conduct of Angola's monetary policy in 2025 unfolded amid persistently high yet gradually easing inflation and ongoing structural reforms. Inflation, which peaked around 31% in mid‑2024, decelerated to 25.3% in February 2025 and averaged 22.3% by April. The National Bank of Angola projects a year‑end inflation rate of approximately 17.5%. 

In pursuit of this disinflationary path, the central bank maintained its reference rate at 19.5%, later reducing the marginal lending facility rate to 17.5%, reflecting improved monetary conditions and a stabilizing kwanza. 

In summary, Angola's 2025 monetary policy balances interest rate stability and currency support against high, yet declining inflation, while fiscal reforms—especially fuel subsidy removal—continue to shape price dynamics and resource allocation. 

Angola remains the second-largest hydrocarbon producer in sub-Saharan Africa, with average daily oil output estimated at approximately 1.173 million barrels per day in 2025, marginally up from 1.170 million bpd in 2024. Despite production plateauing due to the natural decline of mature fields, the oil sector continues to underpin national revenue streams. In the second quarter of 2025, Angola exported 82.92 million barrels of crude oil, generating US$ 5.6 billion, with 55.8 % of volumes destined for China, followed by Indonesia, India, the Netherlands, and Spain. The third quarter saw exports rise to 90.95 million barrels, bringing in US$ 6.29 billion, a 7.2 % sequential increase, with China purchasing 59.6 % of total volumes. Natural gas exports also increased, with LNG shipments valued at approximately US$ 900.7 million, an 18 % quarter-over-quarter rise, primarily benefiting India and other Asian markets. The oil industry, though historically generating around 30 % of GDP and nearly 86 % of exports in 2024, is undergoing gradual diversification through enhanced local content strategies and private sector integration, aiming to increase Angolan workforce participation and promote socioeconomic inclusion within the sector. 

However, Angola's oil sector faces both challenges and opportunities. According to the World Bank, output has plateaued at around 1.17 million bpd in 2025, primarily because of natural declines in aging fields and insufficient investment in enhanced oil recovery and exploration. Maintaining and upgrading aging offshore infrastructure remains critical to stabilising and potentially boosting production levels. In a major strategic move, Angola formally exited OPEC on January 1, 2024, concluding a 16-year membership that began in 2007, signifying a pivot toward more flexible production arrangements and diversified partnerships. 

The diamond sector continues to strengthen its role in Angola’s economic diversification efforts. Angola remains the fourth-largest global producer and second in Africa, with production goals of 14 million carats in 2024 and aiming for 14.8 million carats in 2025, anticipating revenues of approximately US$ 2.1 billion, up from US$ 1.4 billion in 2024. Diamonds account for around 90% of mining revenues, and foreign investment in rare earth and copper exploration—such as the Longonjo project—indicates growing momentum in strategic minerals aligned with the global energy transition. 

PwC in Angola  

PwC Angola is organised around industries, including oil and gas, financial services, industrial manufacturing, energy, utilities, and mining, to share the latest research and points of view on industry trends, develop industry-specific expertise, and share different methodologies and approaches in each area. 

PwC Angola offers a range of tax services to assist taxpayers with tax structuring, tax compliance, oil and gas taxation, mergers and acquisitions, indirect taxation, financial services taxation, individual taxation, tax litigation, etc.