Angola

A vast country with a long coastline and central plateau, Angola thrusts inland across Southern Africa to border Namibia, Botswana, Zambia, and the Democratic Republic of Congo. Its principal cities, including its capital, Luanda, look west over the South Atlantic to Brazil, another Portuguese-speaking nation (like itself). It has a population of more than 36.75 million (World Bank 2023). A general population census is currently being conducted to gather updated information on the population size.

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• History of the Bank's work in Angola

Angola has significant economic potential, with a wealth of natural resources, vast uncultivated arable land, favorable climate conditions, and a strategic location. With half of the population under age 18, Angola also has a large demographic dividend potential. Unlocking this potential requires addressing structural constraints and reducing reliance on oil.

Oil accounts for around 20% of GDP, 60% of government tax revenues, and 95% of exports. This dependence has fueled volatility, as growth has closely tracked global oil prices. After a recession over 2016–20, growth resumed in 2021, but by 2025 real per capita income remained 24% below its 2014 level. As of 2018, an estimated 12.3 million people lived with less than $3 a day, and Angola’s Gini index ranked among the highest.

The government has implemented reforms to strengthen macroeconomic stability and promote economic diversification. Primary fiscal surpluses since 2018 helped reduce public debt from 116% of GDP in 2020 to about 52% in 2025.

Growth weakened to 3.1% in 2025, despite some dynamism in non-oil sectors such as diamonds, commerce, and fisheries, as the oil sector contracted. Unemployment dropped from 30.8% in Q3 2024 to 26.9% in Q3 2025, but 80% of jobs remain informal. In 2025, the current account surplus is estimated at 1.3% of GDP, and reserves cover over eight months of imports, yet foreign direct investment remains weak. Inflation, though easing, remained elevated, at 15.7% in December 2025.

Growth is projected to remain moderate, with real GDP growth averaging 2.8% (2026–28). Inflation is expected to ease gradually over the medium term. Public debt should stabilize around 50% of GDP, and external balances are expected to remain solid if supported by exchange rate flexibility. Sustaining reforms and economic diversification, investing in human capital, and strengthening social protection will help translate growth into poverty reduction and job creation.

The World Bank portfolio in Angola comprises 19 existing investment projects (for a total net commitment of $4.93 billion) financed by the International Bank for Reconstruction and Development (IBRD) and the six current Reimbursable Advisory Services (RAS).

Despite its oil wealth, Angola struggles with significant inequality, especially in rural areas where access to banking services is limited. Inclusive financial development is vital for economic participation and breaking the cycle of poverty. When small businesses and farmers access banking, credit, and insurance, they can invest in entrepreneurship, boost productivity, create jobs, and spend on education and healthcare.

The rise of digital banking and mobile payments presents an opportunity to reach underserved populations, enhancing economic resilience and inclusive development. By implementing the right reforms, Angola can strengthen its financial sector, diversify its economy, and support growth through initiatives like the Lobito corridor and strengthening secondary cities, while ensuring broad-based access to financial services beyond Luanda.

A key challenge is the limited reach of financial institutions, with many banks concentrated in urban areas, leaving rural communities underserved. High banking costs, stringent account opening requirements, and low financial literacy also prevent Angolans from accessing formal financial services. Additionally, weak infrastructure and limited internet and mobile coverage hinder the growth of digital banking in remote areas.

While a new Country Partnership Framework (CPF) is planned for FY25–29, the overarching strategy of the World Bank Group’s current support activities in Angola focuses on pillars of the previous CPF, concentrating on the promotion of more inclusive development, consisting of two core objectives (pillars) and one Foundation Plank of a cross-cutting nature.

Pillar I aims to support economic diversification by revitalizing rural economies and strengthening the non-oil sector, with a focus on technical assistance for energy.

Pillar II seeks to enhance service delivery and establish robust social protection programs to improve living standards and empower citizens in national development.

The Foundation Plank involves building human and institutional capacity to align with middle-income country standards, ensuring effective implementation of existing investments.

The World Bank Group continues to leverage its support by working closely with key stakeholders. Some of the institution’s traditional partners in Angola include United Nations agencies (UNDP, UNICEF, the World Health Organization, UNFPA, FAO), the African Development Bank, the European Commission and the French Development Agency.

A key part of government efforts to reduce poverty, the Strengthening the National Social Protection System Project has registered over 1.7 million households in its cash transfer component, with over 1.4 million of them paid as of February 2026 (70% of beneficiaries are women).

Human capital activities have supported around 373,488 households through Integrated Social Action Centers and Community Development and Sanitation Agents. As of January 2026, the Girls Empowerment and Learning for All Project ($250 million) had trained 6,028 gender focal points, benefiting 200,259 students with improved access to sexual and reproductive health information. The menstrual hygiene management program had reached 44,479 girls nationwide, with further scale-up underway.

As of January 2026, the Multi Programmatic Approach Tertiary Education, Science, and Technology Project ($200 million) had selected six higher education institutions to receive $3 million each to implement development plans and expand STEM access, and awarded 352 scholarships for STEM teacher training (37.7% recipients are women).

The Strengthening Statistical Capacity Project has completed census cartography, developed a master sample for the labor force survey (IEA), and supported its continuous data collection, implemented the 2023/24 and 2024/25 rounds of the Agricultural and Fisheries Surveys (ICAPP), and is currently supporting the collection of the new Household Income, Expenditure, and Employment Survey (IDREA), which is crucial for measuring poverty in Angola. In addition, the project has committed to training 400 staff of the National Institute of Statistics (INE), of whom more than 200 have already been trained.

The Strengthening Governance for Enhanced Service Delivery Project has rehabilitated 55 civil registry posts to enhance access to identity services, launched two Municipal Master Plans in Uíge, and trained 4,500 local officials (22% women) in public financial management.