Opening Angola to Investment and Growth

President João Lourenço explains how reform, infrastructure, private investment, and the Lobito Corridor are reshaping Angola’s economy and opening new paths for growth across Africa and beyond.

Since taking office in 2017, your administration has prioritized Angola’s transition from an oil-dependent economy to a diversified, private sector-led economy. How do you assess the progress made toward this structural transformation, and where do you see its most tangible impact?

We are making progress in reducing the weight of oil in public revenue and expanding the non-oil economy. Oil now accounts for about 41% of national revenue, compared with more than 70% in the past. We have increased the utilization of installed industrial capacity from 31% to 54%, and our objective is to reach 65% by 2027. National production is also meeting more domestic demand for flour, pasta, beverages, soap and cement, supporting import substitution. Between 2022 and 2025, food imports declined by approximately US$595 million, while non-oil exports increased by 66%, particularly in iron, steel, cement, fish, and beverages. These developments demonstrate the importance of investing in national production, improving competitiveness and creating conditions for Angolan products to reach regional and international markets.

Diversification must also change the relationship between the state and the economy. In the past, the state occupied too much space in areas that should have been open to private enterprise. Through privatization and wider reforms, we are withdrawing from activities better suited to the private sector while continuing to provide the infrastructure and institutional conditions that investment requires. The response from private investors has been positive, with investment increasingly reaching different areas of the economy. More activity outside petroleum means more sources of revenue, more opportunities for Angolan companies and a more resilient economy. We still have work ahead, but the declining share of oil in national revenue is tangible evidence that the economy is becoming more diversified.

The Lobito Corridor is a strategic transport and trade route connecting the Port of Lobito, on Angola’s Atlantic coast, to the mineral-rich regions of the Democratic Republic of the Congo (DRC) and Zambia. How can this railway network generate wider economic value?

The Lobito Corridor cannot be limited to transporting minerals from the Democratic Republic of Congo, Zambia, or Angola to the Atlantic. It will only reach its full value if it stimulates diversified investment across the territories served by the railway. That means attracting agriculture, industry, and other productive activities along the Benguela Railway in Angola, as well as in the Democratic Republic of Congo and Zambia as the wider network develops. A major step was taken with agreements signed in Kinshasa to rehabilitate and modernize additional sections of the line and concession operations to Mota-Engil. Regular operations currently cover roughly 1,300 kilometers from Lobito to Luau in Angolan territory, but the corridor becomes more effective when the full route is operational and connected across borders.

The railway should connect production with markets and create conditions for investment along its route. If infrastructure is accompanied by investment, the corridor can support industrialization, agriculture, trade, and regional integration rather than functioning only as a transport channel for commodities.

“Our strategy is to leave the private sector the space it deserves in the national economy.”

Which reforms are strengthening investor confidence in Angola?

One of the most important was the decision to confront corruption, which required political courage and was necessary to strengthen confidence in our institutions. We have also reformed the framework for private investment, including investment by Angolan entrepreneurs, and made the country easier to access. Citizens from around 90 countries can now enter Angola under a more open visa regime, supporting business travel as well as tourism and allowing more people to come, understand the country, and participate in its economy.

Privatization is another part of the same strategy. Our strategy is to leave the private sector the space it deserves in the national economy. This includes areas such as energy and water production and distribution, which were previously dominated by the state. In the extractive industries, we have also strengthened transparency and joined the international transparency initiative for the mining sector. Companies are investing across different areas of the economy, while international mining groups that had been absent for years have returned. De Beers and Rio Tinto are examples. Their return demonstrates renewed confidence in Angola’s long-term potential.

Through PRODESI, our program supporting production, export diversification and import substitution, approximately 6,300 projects have received support, contributing to the creation of more than 100,000 jobs. We have also introduced a new legal framework for industrial development zones to improve their management and attract private operators.

Beyond oil, Angola holds significant potential in mining, natural gas and renewable energy. What is your strategy for developing these sectors to promote industrialization, strengthen long-term energy security, stimulate rural development and create employment opportunities for Angolan youth?

Our objective is to ensure that Angola captures more value from the resources it produces. Diamonds illustrate that approach. The sector is facing market pressures linked to the emergence of synthetic diamonds, so we are responding by increasing local processing. In Saurimo, factories have been established to cut and polish diamonds rather than export the entire output in raw form. This allows more of the value chain to remain inside Angola and supports industrial activity and employment. It also gives Angola a way to respond to changing market conditions while preserving more value from its natural diamonds.

“More activity outside petroleum means more sources of revenue, more opportunities for Angolan companies and a more resilient economy.”

We have introduced reforms intended to improve transparency and create conditions that can attract international companies interested in diamonds and other minerals. The return of De Beers and Rio Tinto, both of which have exploration concessions, shows that those conditions are improving. In the energy sector, we are following a similar approach by strengthening our capacity to process resources domestically. The first phase of the Cabinda refinery has entered operation, while work on its second phase is under way, with the aim of reaching a processing capacity of 60,000 barrels per day. We are also advancing refinery projects in Lobito and Soyo to reduce dependence on imported refined products. At the same time, we are investing in renewable energy, including the Caraculo solar power plant in Namibe, and exploring opportunities in green hydrogen.

We are also opening sectors once dominated by the state to greater private participation. Energy and water production and distribution are examples. Correcting that model allows private investors to contribute capital and operating capacity while the state focuses on the public infrastructure and regulatory responsibilities that only it can provide.

How does your administration plan to harness agriculture’s potential to advance economic diversification, strengthen food security and create employment opportunities in rural communities?

Agriculture is a central part of our diversification strategy because it can strengthen food security, expand production outside the oil economy, and create opportunities in rural areas. PLANAGRÃO is one of the programs designed to accelerate this process, particularly through greater grain production. Angola has traditionally been a significant producer of corn, and we want to increase that output further. At the same time, we are encouraging crops that have not historically been produced at the same scale, including rice, wheat, and soy. We are also strengthening the productive capacity of family farmers, who play an essential role in Angola’s agricultural economy. The availability of fertilizers for family farming increased from approximately 13,000 tonnes in 2022 to more than 173,000 tonnes in 2026, while certified seed availability rose considerably between 2023 and 2025. These measures are intended to improve agricultural productivity and help producers increase their output. We are also investing in irrigation infrastructure to strengthen the sector’s resilience to climate change.

“When we say Angola is on the right path, it should not be understood as a political slogan. The evidence is in the growth rate.”

The objective is to first increase domestic production and, where possible, create the capacity to export. Agriculture should not be treated as an isolated activity. Its growth depends on transport, energy, water, storage, processing, and access to markets. That is why agricultural development is closely connected to our wider investment in infrastructure and industry. As production expands, it can create employment for young Angolans, strengthen rural economies and reduce dependence on imported food.

What infrastructure legacy do you want your administration to leave?

The legacy we want to leave is a stronger infrastructure base across the economy. Roads, railways, ports, airports, information technology, hospitals, and educational institutions are all areas in which public investment can create the conditions for private investment. Businesses cannot operate competitively without reliable water and energy, transport links for inputs and finished products, or ports and airports that connect Angola to regional and international markets. The state therefore has a responsibility to provide the infrastructure that makes productive activity possible. We have expanded and improved the national road and railway networks and strengthened port capacity along Angola’s approximately 2,600-kilometer coastline. These ports are increasingly operated through concessions to private companies rather than managed directly by the state. The Port of Caio in Cabinda is due to enter service shortly and will become Angola’s largest port, while we inaugurated our largest international airport in 2023. The Lobito Corridor is part of this strategy, and we are preparing a similar initiative for the Southern Corridor centered on Namibe. Industrial infrastructure is equally important to this strategy. We are rehabilitating rural industrial parks and developing facilities in Viana and Biópio, with the latter offering opportunities to connect productive activities to the Lobito Corridor. At the Barra do Dande Free Trade Zone, projects include a national grain reserve and an edible oil refinery. We have also signed an agreement for the development of a port terminal at Dande, with an estimated first-phase investment of US$450 million. This infrastructure is intended to facilitate the export of locally manufactured products and the import of raw materials for industrial processing. These investments are the foundation on which private investment, employment, and long-term development can grow.

What do Angola’s current economic indicators reveal about the country’s progress toward diversification and sustainable growth, as well as its long-term economic outlook?

The indicators show that the reforms are producing measurable results. Gross domestic product grew by 8.7% in the second quarter of 2026. Inflation was about 10% in July and is expected to move into single digits, reaching around 9%. Public debt is now approximately 51% of GDP. There were periods when the debt-to-GDP ratio exceeded 100%, so that reduction is significant. The composition of national revenue has also changed substantially as the non-oil economy has expanded. These numbers matter because they shape the confidence of international creditors and investors. Angola is increasingly able to access financing lines and international markets, including eurobonds, under better conditions because creditors can see the improvement in the country’s fundamentals. That confidence gives us greater access to the capital needed to support national development while continuing to manage our obligations responsibly. When we say Angola is on the right path, it should not be understood as a political slogan. The evidence is in the growth rate, the decline in inflation, the lower debt burden, and the stronger contribution of sectors outside petroleum. Our priority now is to consolidate these gains and use them to support productive investment, infrastructure, employment, and a more diversified economy over the long term.

Produced independently of the TIME Africa newsroom by Penresa.

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