Africa's Oil Economies Amidst the Energy Transition: Angola

Although Angola officially transitioned from a communist economic model to a market economy in 2002, the economic architecture and infrastructure, including the financial system, still need to be reconfigured to align with world market dynamics. This is partly due to the ideological tensions between the stalwarts of the old system and the proponents of a liberal economic order. The country is Africa’s second-largest oil producer, but due to its 27-year civil war after independence, the nation of 35 million grapples with high rates of corruption, a closed political space, and mismanagement of natural resources. Furthermore, the incomplete reconciliation process in Angola has undermined the legitimacy of the state and delayed economic development. These factors erode investors’ confidence. 

Since he was inaugurated in 2017, President João Lourenço has worked to address these challenges and create an investor-friendly environment. First with his anti-corruption campaign then by passing the Private Investment Law in 2019 which opened Angola to more foreign direct investment. These policies helped to make it easier to do business in Angola. The country is also grappling with the inequitable distribution of resources and infrastructure between the northern and southern provinces. This is exemplified by Cabinda and Zaire in the North, which produce 55 and 35 percent of Angola’s oil revenues and yet lack the basic infrastructure to reflect their contributions to the economy. 

The CSIS Africa Program will host a panel discussion moderated by Ambassador William Mark Bellamy with Sergio Calundungo, Giza Gaspar Martins, and Carlos Rosado de Carvalho to discuss the findings in Mvemba Dizolele’s report: Angola: The Long Road Traveled and the Way Forward. This is part two of a two-part series on African oil economies.

This event is made possible by the generous support of Chevron Corporation