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 31% 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 over 2018-24 helped reduce public debt from 116% of GDP in 2020 to about 52% in 2025.

Growth strengthened to 7.2% in the first half of 2026, reflecting strong non-oil activity–particularly manufacturing, communications, and commerce–and 3% oil production recovery. Despite strong non-oil growth, unemployment rose from 20.3% to 21.5% in Q2 of 2026. About 80% of jobs remain informal. Higher oil export revenues strengthened Angola’s external position and the current account turned into surplus in the first half of 2026 (2% of GDP) from a deficit in the second half of 2025 (0.5% of GDP). Reserves cover over seven  months of imports. Net FDI rose to 1.6% of GDP in 2025 and maintained momentum in the first half of 2026. Inflation has been easing, reaching an 11-year low of 8.8% in August 2026.

Growth is projected at 4.5% in 2026, driven by non-oil activity and the favorable environment for the oil sector. It is expected to average 3.2% over 2027-28. Agriculture and services–including logistics, communication, and commerce–will be the main growth engines in the medium term, amid the oil sector structural decline. Inflation is projected to stay around 10% over 2026-28. Public debt should stabilize around 50% of GDP, and external balances are expected to remain solid. Sustaining reforms and economic diversification, investing in human capital, and strengthening social protection will be crucial to 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 $5.5 billion) financed by the International Bank for Reconstruction and Development (IBRD) and 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 1.5 million of them paid as of July 2026 (70% of beneficiaries are women).

As of July 2026, human capital activities have supported around 373,488 households through Integrated Social Action Centers and Community Development and Sanitation Agents. The Girls Empowerment and Learning for All Project ($250 million) had trained 6,028 gender focal points, benefiting 328,225 students with improved access to sexual and reproductive health information. The menstrual hygiene management program had reached 105,326 girls nationwide, with further scale-up underway, and enabled 228,512 youth and adults to complete second-chance education programs with integrated life skills.

As of July 2026, the Multi Programmatic Approach Tertiary Education, Science, and Technology Project ($200 million) has expanded support to 13 public higher education institutions through Results-Based Agreements aimed at improving quality, relevance, and labor market alignment. The project awarded 737 STEM teacher scholarships, with women representing 38% of beneficiaries; and supported the evaluation of 1,118 academic programs nationwide.

The Strengthening Statistical Capacity Projecthas 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 290 have already been trained.

The Strengthening Governance for Enhanced Service Delivery Project has completed 24 development support projects across participating municipalities, financed 83 training activities benefiting 26,000 participants, 26% of whom were women, and rehabilitated 69 civil registration posts to expand access to identity services.