Angola’s economy is characterised by an extremely high dependency on two exports: oil (95% of total exports) and diamonds (3-4% of total exports). Not only is this unsustainable - oil reserves are expected to be depleted in the medium term, and extraction generates few jobs - but it also means that the country is extremely vulnerable to oil price shocks. Export diversification is therefore imperative and urgent. Periodic increases in the world oil price (as happening presently) or postponements of graduation from least developed country status are no excuses for inertia!
We prepared two studies to identify options for export diversification: First, an Export Diversification Study completed in 2019 identified policy measures for diversifying exports and, maybe more importantly, assessed and ranked the export potential of 30 sectors, also proposing measures to foster exports of the most promising sectors. the export diversification study has recently been made available publicly and can now be downloaded from the African Development Bank's website:
- Main study in English and Portuguese
- Annex with sector profiles in English and Portuguese
The second study is a sustainability impact assessment (SIA) of Angola's potential accession to the EU-SADC Economic Partnership Agreement (EPA) as well as of a Sustainable Investment Facilitation Agreement (SIFA) currently being negotiated between Angola and the EU. The SIA analyses the potential economic, social, human rights and environmental impacts of the two agreements, as well as the institutional and administrative capacity of Angola to implement them. The study shows that the overall impact of Angola’s accession to the EPA would be limited but positive in the short term, but substantially larger and positive in the longer term. The longer-term impact of the SIFA is potentially even stronger (and also positive). The SIFA and accession to the EPA are clearly complementary.
However, for Angola to fully benefit from the agreements, assistance by the EU (and/or EU Member States) will be required, as well as a commitment by the Angolan Government to put in place the necessary measures that will enable businesses to enhance their competitiveness and produce not only for the EU export market but also for the domestic and regional markets, and do so in a sustainable and inclusive manner.
For more information and all reports produced as part of the SIA, consult the study website.