• Analysis and Studies
• Angola: a look at the market

Overview

In 2022, Angola ranked as the 67th largest economy globally by GDP (current US$), demonstrating its growing economic stature despite challenges. However, it stood as the 135th in GDP per capita (current US$), highlighting significant income disparity and developmental gaps. In terms of trade, Angola was the 58th largest exporter and the 92nd largest importer, reflecting its trade-driven economy, primarily centered around natural resources. According to the Economic Complexity Index (ECI), Angola ranked 126th, indicating a low diversification in its economic activities and a reliance on a limited range of exports.

Exports

Angola's economy is heavily dependent on its natural resource sector. The country's leading exports in 2022 included Crude Petroleum ($39.4B), Petroleum Gas ($6.62B), and Diamonds ($5.02B), which collectively represent its resource-centric economic base. Other notable exports included Refined Petroleum ($837M) and Special Purpose Ships ($574M). A significant portion of these exports is directed towards major trading partners like China ($21.8B), India ($4.81B), the Netherlands ($3.91B), France ($3.8B), and the United Arab Emirates ($3.63B). This strong reliance on a few key partners, particularly China, underscores the vulnerability of Angola’s export economy to external demand fluctuations.

Imports

Angola’s import profile reflects a focus on essential commodities and manufactured goods necessary for domestic consumption and infrastructure development. The top imports included Refined Petroleum ($2.16B), Wheat ($545M), Cars ($468M), Poultry Meat ($436M), and Palm Oil ($355M). These goods were primarily sourced from China ($3.91B), Portugal ($1.59B), the Netherlands ($1.25B), the United Arab Emirates ($745M), and India ($734M). Notably, Angola's dependency on imports for refined petroleum and essential food items points to gaps in local production and processing capabilities, which could serve as focal points for future investment and industrial diversification.

Interestingly, Angola was the world’s largest importer of Eyewear and Clock Glass in 2022, with imports valued at $80.6M. While this may seem surprising, it highlights niche demands or specialized consumption patterns that warrant further investigation.

Geographic Context

Angola’s geographic position in Southern Africa enhances its potential as a regional trade hub. Sharing borders with the Democratic Republic of the Congo, Republic of the Congo, Namibia, and Zambia, Angola enjoys access to significant cross-border trade opportunities. Its coastline along the Atlantic Ocean further strengthens its strategic importance for maritime trade, especially in exporting petroleum products and diamonds. However, to fully capitalize on its location, Angola would need to invest in infrastructure, improve its business environment, and diversify its economic activities to reduce over-reliance on resource extraction.

Source: https://oec.world/