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 characteristics, Angola could play a very important role in helping to meet 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. Angola is 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 a favorable external environment in earlier years marked by elevated commodity prices, Angola’s economic momentum moderated in 2025 and into 2026, reflecting structural constraints and continued exposure to hydrocarbons. Following strong growth of 4.4% in 2024, real GDP expansion slowed to an estimated around 3.0% in 2025, with projections for 2026 ranging between 2.3% and 2.9%. 

Macroeconomic policy has been focused on stabilisation and gradual structural reform. Fiscal consolidation efforts—combined with the continued phasing‑out of fuel subsidies—have improved resource allocation, although fiscal pressures persist amid declining oil revenues and pre‑electoral spending needs. The fiscal deficit is projected to widen moderately to around 1.7–2.1% of GDP in 2025–2026, while public debt remains broadly sustainable but sensitive to oil price fluctuations. 

Inflation has followed a clear disinflationary trajectory since its peak above 30% in mid‑2024. Supported by tight monetary policy, exchange rate stabilization, and easing supply constraints, inflation declined to approximately 17% in 2025 and further to around 10–13% in 2026, with recent data indicating levels near 10.9% year‑on‑year by May 2026.

In line with these developments, the Banco Nacional de Angola has gradually shifted from a restrictive stance toward cautious easing, reducing policy rates while maintaining a focus on price stability and currency support. 

Angola’s external and monetary position has remained relatively stable, supported by current account surpluses and improved foreign reserve coverage, although these buffers are expected to gradually decline amid softer oil prices and lower export volumes. 

The oil sector continues to underpin Angola’s economy, accounting for most exports and fiscal revenues. However, production has plateaued at approximately 1.0–1.1 million barrels per day in 2025, reflecting the natural decline of mature offshore fields and limited new investment.  

While initiatives to attract investment—including licensing rounds and upstream reforms—are ongoing, structural decline rates in existing fields continue to constrain output. Consequently, oil dependence remains a significant macroeconomic vulnerability, particularly in the context of volatile global prices.  

In response, the government has intensified efforts to promote economic diversification. Priority areas include agribusiness, mining, logistics infrastructure, particularly the Lobito Corridor—and renewable energy. These sectors are increasingly supported by foreign investment and multilateral financing, reflecting Angola’s strategic positioning in regional trade and energy transition value chains. 

The mining sector, especially diamonds, continues to play a central role in diversification. Angola remains one of the world’s leading producers, with output reaching approximately 14 million carats in 2024 and targeted increases toward 17 million carats by 2027.  
In parallel, exploration of critical minerals—including rare earths, copper, and lithium—has gained momentum, aligning with global demand linked to the energy transition. 

Overall, Angola’s economic trajectory in 2025–2026 reflects a transition phase: macroeconomic stability has improved—particularly through inflation control and monetary discipline—but growth remains moderate and constrained by structural bottlenecks. The persistence of oil dependence, combined with demographic pressures and infrastructure gaps, underscores the urgency of accelerating reforms aimed at diversification, private sector development, and human capital strengthening. Nevertheless, ongoing policy efforts and investment initiatives signal a gradual shift toward a more resilient and diversified economic model.

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.