According to IMF 2018 estimates, Angola is a lower middle-income nation in southern Africa with a GDP of USD 114.5 billion, a population of 29.1 million people, and a per capita income of USD 3,924. It is the third-largest economy in sub-Saharan Africa and the third-largest export market for the United States there.
With a daily production of 1.37 million barrels of oil, Angola ranks second in Sub-Saharan Africa’s oil production. This country is a significant oil producer and an OPEC member. The nation has abundant mineral resources in addition to sizable known gas reserves. Due in large part to the sharp decline in oil prices and the significant decrease in oil production since 2016, the country has experienced negative economic growth. Economic growth has been hampered by resulting national budget cuts, currency devaluations, and high inflation rates. The economy is anticipated to expand by 1.2 percent in 2019 and experience 15.4 percent inflation.
The country gained independence from Portugal in 1975 but quickly fell into a civil war that lasted until 2002. On August 23, 2017, the country held its second presidential election under the 2010 constitution, electing Joao Lourenço of the MPLA party as President of Angola. The election signaled a secure democratic transition. Angola, together with South Africa and Nigeria, is one of the United States’ three critical allies in Sub-Saharan Africa.
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For 37% of its GDP, 75% of its government revenue, and 90% of its exports, Angola is heavily dependent on the offshore oil and gas sector. Chevron, ExxonMobil, BP, and Total are significant worldwide oil-producing firms with operations in Angola. Petroleum dominates Angola’s exports to the US, with small amounts of wood and diamonds following. There is medium-term potential for U.S. businesses in agriculture, industry, and critical infrastructures like energy, water, and transportation because the nation has made it clear that it wants to diversify its economy and increase domestic production capacity.
Angola’s imports are anticipated to be worth USD 13.32 billion in 2018, a 20.5 percent decrease from 2017. Exports from the United States to Angola fell by 35% between 2017 and 2018, totaling USD 527 million. Despite the drop, Angola remains the United States’ third-largest sub-Saharan African export market. In 2018, the main categories of US exports to Angola were aircraft and parts, chemical products, energy generation equipment, machinery, meat, and oil and gas equipment. In 2018, China (17%), Portugal (13%), Belgium (5%), the United States (4%), and South Africa were the top suppliers of Angola’s imports (3.6 percent).
Angola exported USD 46.4 billion to global markets in 2018, a 19% increase over 2017. Petroleum was the most important export, but timber and diamonds were also sent in minor quantities. Petroleum products accounted for more than 90% of Angolan imports to the US in 2018 (a 3.6 percent rise), with diamonds, timber, and coffee accounting for the remaining 7%.
Expanding U.S. exports to Angola
A sizable market, with a population of 29.1 million people and a GDP of USD 114.5 billion. Despite the present economic slowdown, Angola is the third largest economy in Sub-Saharan Africa, making it a natural next market for US companies with operations in the region. Because of its limited domestic production capacity, Angola imports the majority of its goods increasing domestic production capacity will take years and depend on international providers of essential inputs for infrastructure, manufacturing, and agricultural growth, increasing import demand. Significant attention in the United States. Angolan private companies are ready to work directly with US firms and gain exposure to US equipment, technologies, and solutions in important economic sectors.
Angola has historically had a strong central government and has been free of secular conflict, yet the current economic crisis has increased economically driven crime. The US Commercial Service Angola, based at the US Embassy in Angola, can help US businesses understand the business environment and locate local partners and sales prospects.
