Angola Leverages Oil Windfall to Accelerate Economic Diversification
Angola Targets $2 Billion in Mining Investment as Oil Revenues Fuel Diversification Drive
Angola is using stronger oil revenues to accelerate an ambitious economic diversification strategy aimed at reducing its dependence on crude exports and creating new growth engines across mining, agriculture, infrastructure, tourism, and manufacturing.
Despite crude oil accounting for roughly 90% of the country’s export earnings, the government is channelling increased petroleum revenues into structural reforms and investment initiatives designed to expand the non-oil economy and attract foreign capital.
A central pillar of the strategy is the mining sector. Angola is targeting approximately US$2 billion in investment in non-diamond mining and rare-earth projects by next year, as authorities seek to capitalize on growing global demand for critical minerals while broadening the country’s resource base beyond oil and diamonds.
The government is also advancing plans to transform agriculture into a major contributor to economic growth.
Discussions are underway on a proposal that could place up to 800,000 hectares of farmland under Brazilian-led agricultural ventures, reflecting efforts to unlock Angola’s vast agricultural potential and strengthen food production capacity.
According to Citigroup, Angola’s improving macroeconomic environment and ongoing reforms are increasing its attractiveness to international investors.
The country’s efforts to strengthen political and economic stability are helping position it as a more compelling destination for long-term investment.
The shift is already becoming visible in national economic figures. Data from the African Development Bank shows that the non-oil sector’s contribution to GDP rose to 86% in 2025, up from 77% in 2019, highlighting the steady expansion of economic activity outside the petroleum industry.
Financial institutions are also taking notice. South Africa’s Absa Group is establishing a representative office in Angola, while Standard Bank has increased its shareholding in its Angolan subsidiary to 75%.
Meanwhile, Kenya’s Equity Group has identified Angola as a future growth market, with plans to expand into the country by 2030 as regional trade corridors gain prominence.
Infrastructure development remains another cornerstone of Angola’s diversification agenda.
The government continues to support the Lobito Corridor, the strategic rail network linking Angola’s Atlantic coast with copper and cobalt mining regions in Zambia and the Democratic Republic of Congo. The corridor is undergoing a major upgrade and is expected to strengthen Angola’s position as a regional logistics hub for critical minerals exports.
Agriculture is receiving additional support through a US$1.45 billion World Bank-backed financing package focused on processing, logistics, and agricultural services.
Separately, a US$1.3 billion investment is earmarked for the country’s first large-scale urea and ammonia production facility, a project expected to bolster agricultural productivity and industrial development.
Tourism is emerging as another priority sector. Authorities are targeting US$1 billion in tourism infrastructure investment by the end of 2026, as Angola seeks to capitalize on its natural attractions, coastline, and wildlife assets while creating employment opportunities outside the extractive industries.
The International Monetary Fund projects Angola’s economy will grow by 4.4% this year, while the government expects growth to accelerate to 5.5% in 2027, supported by a projected 7% expansion in the non-oil economy.
As Angola continues to deploy oil revenues into productive sectors, the country is positioning itself for a future in which mining, agriculture, logistics, manufacturing, and tourism play increasingly important roles alongside its traditionally dominant petroleum industry.
