Angola’s oil sector will continue to dominate the economy over the next decade, despite a gradual decline in its significance, according to Tiago Dionisio, chief economist at consultancy firm Eaglestone.
Dionisio pointed out that oil’s contribution to Angola’s GDP has decreased from 43% in 2010 to 25.5% by the end of last year, and this downward trend is expected to continue.
However, oil will remain the most important sector in terms of GDP. “Oil still represents almost 95% of exports and contributes more than half of public revenue,” Dionisio noted, underscoring its role in balancing Angola’s public accounts, as the country remains the second-largest oil producer in sub-Saharan Africa.
Speaking during the Oil & Gas Angola conference in Luanda, Dionisio emphasized that while Angola is making efforts to diversify its economy, the process is gradual and will take years, not months.
“The authorities have introduced reforms and engaged the private sector, but this transformation takes time.”
Angola continues to target a production level of at least one million barrels of oil per day, despite previous ambitions to reach two million barrels a day being shelved.
“The goal of one million barrels per day remains,” said Dionisio, pointing to the country’s ongoing focus on maintaining this output level despite operational challenges.
In 2023, Angola left the Organization of the Petroleum Exporting Countries (OPEC), citing production quotas that restricted growth.
However, Dionisio noted that Angola’s actual production during the year hovered around one million barrels per day—matching or staying below the limit that would have been imposed by OPEC. “It wasn’t a very impactful decision,” he said.
The Angola Oil & Gas Conference, held at the Talatona Convention Center, is the nation’s premier event for the sector, bringing together stakeholders to discuss the future of the industry.
Last year’s event welcomed over 2,200 delegates from 41 countries and saw the signing of seven agreements. This year’s theme is “Boosting Exploration and Development Towards Increased Production in Angola.”
