Written by: Badr Ahmed

Angola is undergoing a remarkable economic transformation in an attempt to break free from its historical dependence on oil, after agriculture became, for the first time, the largest contributor to GDP, surpassing the oil sector that dominated the country’s economy for decades.

On the sidelines of the African CEO Forum in Kigali, the Minister of State for Economic Coordination announced that agriculture now accounts for about 25% of GDP, compared to just 14% ten years ago, while oil has fallen to about 15%, in a shift described by observers as an unprecedented structural change in the economy of Africa’s second-largest crude oil producer.

Angola is betting on agriculture to end decades of oil dependency.

For many years, Angola has been a model of what is known economically as the ”Dutch disease,” where heavy reliance on oil revenues has weakened other productive sectors and increased dependence on imports.

But since 2017, the Angolan government, led by the president, has begun implementing a plan to restructure the economy, focusing on food security, agricultural development and reducing dependence on imports.

According to data from the National Bank of Angola, food imports fell by more than 30% last year, coinciding with the expansion of domestic production and improved market stability.

The inflation rate has also gradually declined to around 13%, with expectations that it will fall below 10% by the end of 2026 if current trends continue.

The government relies on agriculture as both a social and economic tool, as more than three million families depend on agricultural activity for their livelihood. Therefore, the state has invested heavily in agricultural support, financing, and the provision of inputs to improve productivity and promote rural development.

Meanwhile, Luanda is benefiting from high global oil prices, but this time it is seeking to use the additional revenues to reduce external borrowing rather than expand public spending.

The government plans to reduce its financing needs by about $3.6 billion during the 2026 budget, while keeping public debt below 50% of GDP.

Despite the ongoing challenges, particularly those related to fuel subsidies and high import costs, the government continues to focus on major infrastructure projects, most notably the strategic “Lobeto Corridor,” which connects mining areas in Central Africa to the port of Lobeto on the Atlantic Ocean, in an effort to transform Angola into a regional logistics and industrial hub.

Angola’s non-oil economy recorded growth exceeding 5% over the past two years, while growth reached 7.2% in the last quarter of 2025, the highest growth rate the country has seen in a decade, reflecting accelerating efforts to diversify the economy and reduce dependence on oil.