Rising Global Oil Prices Boost Angola’s Revenue but Threaten Inflation, Says Minister
Angola could benefit from rising global oil prices due to the ongoing conflict in the Middle East, but the country also faces potential inflationary pressures from higher import costs, the Minister of State for Economic Coordination, José de Lima Massano, warned on Friday.
Speaking at the first edition of the conference “Radar Africa – Angola’s Paths” in Lisbon, organized by Jornal de Negócios, Massano said that in the short term, rising oil prices are positive news for oil-exporting countries.
“These are interesting developments, but we must wait to see how they impact us. The rise in oil prices could be temporary or persist in the medium to long term, and we will need to adjust accordingly,” Massano said, referring to price increases triggered by the war in Iran and escalating tensions across the Middle East.
However, the minister cautioned that Angola, which continues to rely heavily on imports for essential goods, could see negative effects on domestic inflation, which remains in double digits.
Angola’s budget for 2026 projected an average oil price of $61 per barrel, but following the recent conflict involving the United States and Israel’s attack on Iran, prices surged past $87 per barrel.
“At the time we prepared the General State Budget, forecasting $61 per barrel was already bold given the external environment.
Now, in the first quarter, prices have exceeded $80 per barrel,” Massano noted.
Angola’s economy still relies heavily on oil, which accounts for roughly 90% of foreign currency generation. However, the minister highlighted that the sector’s relative weight in the overall economy is declining thanks to ongoing economic diversification efforts.
“The latest data for 2025 shows the non-oil sector now dominates the economy, contributing nearly 80% of GDP, while oil accounts for 19.5%.
Agriculture, which was once marginal, is growing rapidly and now has a GDP share comparable to the oil sector,” he said.
Massano’s comments underscore the dual impact of global energy shocks on Angola: higher revenues from oil exports but potential inflationary challenges, reinforcing the importance of continued diversification to strengthen economic resilience.
