Angola is using a surge in oil revenues to accelerate its economic diversification programme, directing fresh resources to infrastructure, mining, agriculture, and energy projects to reduce its long-standing dependence on crude exports.
According to Bloomberg, citing Citigroup Inc., the government is seeking to turn higher oil earnings into long-term investments that can transform the economy from an extraction-dependent model into a more diversified growth market.
Despite the push, crude oil still accounts for approximately 90% of Angola’s export revenue, leaving the country exposed to fluctuations in international oil prices.
Grant Carson, a Citigroup executive overseeing markets including Angola, Ethiopia, Rwanda and Guinea, said the country was attracting renewed interest from international investors as economic conditions improved.
“We’re definitely seeing a lot of activity and it has the benefit of longer-term political stability, economic stability, which is making it more attractive for foreign direct investment, infrastructure projects, and other longer-term investment,” Carson said during the African Financial Industry Summit in Luanda.
Infrastructure and mining drive investment opportunities
One of the major projects supporting Angola’s diversification strategy is the Lobito Corridor, a 1,800-kilometre railway and transport network connecting Angola’s Atlantic coast to mineral-producing regions in Zambia and the Democratic Republic of Congo.
The United States-backed corridor is receiving an $866 million upgrade aimed at improving the movement of copper, cobalt and other minerals from Central Africa to international markets.
Angola is also seeking to attract approximately $2 billion for non-diamond mining and rare-earth projects by 2027, as it positions itself to benefit from growing global demand for critical minerals.
The government is further pursuing agricultural investments, including discussions to allocate up to 800,000 hectares of farmland to Brazilian companies to expand commercial farming and food production.
In manufacturing, a $1.3 billion investment agreement is expected to support the development of Angola’s first major urea and ammonia production facility, reducing reliance on imported fertilisers.
Foreign banks eye Angola’s growing economy
The improving investment outlook is also attracting international financial institutions.
South Africa’s Absa Group is expanding its presence through a representative office in Angola, while Standard Bank has increased its stake in its Angolan subsidiary to 75%.
Kenya’s Equity Group Holdings has also outlined ambitions to establish operations in the country by 2030, with an interest in trade opportunities linked to critical minerals and regional supply chains.
These developments suggest that Angola’s diversification ambitions could create opportunities beyond the energy sector, particularly in banking, trade finance, logistics, manufacturing and infrastructure financing.
Non-oil economy gains ground
Data from the African Development Bank indicates that the non-oil sector accounted for approximately 86% of Angola’s GDP in 2025, compared with 77% in 2019.
The International Monetary Fund projects economic growth of 4.4% in 2026, supported partly by stronger oil prices and easing inflation.
Angola’s government is targeting 5.5% growth in 2027, with the non-oil economy expected to expand by 7%.
For investors, the challenge will be determining whether the current oil windfall can translate into sustainable private-sector growth rather than another temporary expansion driven by commodity prices.
Angola’s experience also presents a wider lesson for African oil-producing economies: natural resource wealth can finance economic transformation, but lasting diversification depends on how effectively governments convert temporary commodity revenues into productive infrastructure, competitive industries and jobs.