With a population of 31.8 million, the Republic of Angola's gross domestic product (GDP) was USD 84. 6 billion in current prices in 2019.
This is relatively high compared to other sub-Saharan African countries, and remarkable for a least developed country (LDC). There has been a steady growth in GDP per capita rising from 745 US dollars in 2000 to 2,658 US dollars in 2019 (current prices). However, despite the growth over time, the most recent trend has been negative, with GDP per capita falling from 4,167 US dollars in 2015. The decline is due to the combined effect of low international oil price and the impact of COVID19- which is the result of weak productive capacities of Angola and lack of structural transformation in its economy.
Despite the exceptional improvement in GDP per capita, progress in economic diversification and advances in social and human-capital development has been limited. These challenges continue to be daunting.
Angola remains heavily dependent on oil, which accounts for a whopping 93% of the nation's total merchandise exports (2019). The recent decline in international oil prices has further aggravated the vulnerability of the country to external shocks.
Overdependence on a single export item (oil) has also discouraged the country from incorporating into global value chains and participating more fully in the export of manufactured goods and value-added services.
With the COVID-19 crisis, the country is facing increasing challenges due to dependence on one single commodity. The COVID-19 pandemic is also expected to reverse the modest gains that Angola has achieved over the last decade in poverty reduction. The situation prompted the country to seek an extension of the preparatory period preceding its graduation from LDC category, which was to happen in February 2021. The new UN General Assembly resolution extends the preparatory period by three years until February 2024.
In view of Angola's forthcoming graduation, a major challenge lies in building economic resilience to help the country weather external shocks. The country is in strong need of reformulated policies and institutions to help diversify its economy, and maximize regional and global trade opportunities. The EU-UNCTAD Joint Programme for Angola: Train for Trade II responds to these challenges by supporting the process of diversification of the country’s economy and exports through building the key components of its productive capacities in seven different Programme areas.
In short, it is important that Angola’s current and future policies and strategies place productive capacities and structural economic transformation, including export diversification and value addition at the center.
- Objectives of the Programme
The objective of the EU-UNCTAD Joint Programme for Angola: Train for Trade II is to improve human and institutional capacities to foster appropriate economic diversification policies in Angola, and to help the country build a more resilient economy capable of eradicating poverty. UNCTAD's intervention will focus on key problems previously identified by the Angolan Government. These problems are pervasive challenges that undermine efforts to achieve accelerated, inclusive and sustainable economic growth and development.
The key areas identified are:
Trade policy and negotiations
Transport and trade logistics
Scoping non-oil trade opportunities and diversification (including in selected agricultural products and creative industries)
Holistic support to the creative economy
Angola National Green Export Review: Scoping non-oil trade opportunities/diversification
Commercial Diplomacy: Capacity building in trade policy making, negotiations and analysis for Angola
Trade facilitation: Support for the implementation of the WTO Trade Facilitation Agreement in Angola, UNCTAD Empowerment Programme for National Trade Facilitation Committees
Transport and Trade Logistics: Promoting sustainable transport and trade logistics systems, corridor and cluster-based approaches
EMPRETEC: SME development and support to the creation of an Entrepreneurship Policy Framework
Investment: Investment Policy Review of Angola (IPR)
Creative Economy: Support for the creation of a stronger creative economy in Angola, including through a coherent dedicated strategy, and focused training to public and private sector agents
- Expected accomplishments
Enhanced technical skills of Angolan officials and other interested parties through training, and advisory services, as well as policy and regulatory support;
Increased knowledge imbedded in national institutions and officials trained to be providers of trade courses;
SMEs and businesspeople trained in entrepreneurial and growth techniques by EMPRETEC;
Increased capacities through opportunities for regional and international knowledge and experience sharing for government officials and stakeholders;
Investment policy framework analyzed and recommendations for improvements provided, incl. support for the implementation of the recommendations;
Analysis of economic sectors and value chain mapping;
Development of course curricula for academic or vocational training on trade;
Creative economy strategy developed;
Development of a distance learning network.
*Source for figures and estimates: UNCTADStat.
Putting down long-term roots in Angola’s entrepreneurial ecosystem
A national trainer programme is increasing the local ownership and sustainability of an EU-funded UNCTAD project in the southern African nation.
EU renews support for UNCTAD’s work on productive capacities in Angola
The European Union has approved additional funds for a project supporting the African nation’s quest to diversify exports and reduce its dependency on oil for economic growth.
Betting on the untapped potential of Angolan honey
The government sees honey as a product that could help diversify the country’s oil-dependent economy and is working with UNCTAD and the European Union to improve production and boost exports.
Angola eyes former coffee glory for more sustainable growth
Overdependence on oil has fuelled volatile and uneven growth. Coffee could help the country change course if it can revive production and add value to its beans.
Facilitating a Coordinated Response
An Holistic Approach to Diversification
COVID-19 affirms urgency of trade facilitation reforms in Angola
Angola to reform business climate to boost investment in agribusiness
The Ministry of Trade, the Ministry of Economy and Planning and UNCTAD discussed reforms to boost FDI for economic diversification during the presentation of the Investment Policy Review (IPR)
Why Angola must foster entrepreneurship and diversify its economy
Paul Akiwumi, Director, Division for Africa, Least Developed Countries and Special Programmes, UNCTAD
Supporting export diversification through training and by building productive capacities...
National Green Export Review workshop facilitating the identification and prioritization of green products with export potential in June 2018
Capacity building training for honey producers and traders in the Moxico province in June 2019
Women producers of coffee and tropical fruits certified in a capacity building training in the Uíge province of Angola in November 2019
Quality honey from Moxico, Angola
Training beneficiary Dona Isabel Menezes at her coffee plantation in the Uíge province of Angola
Helping to train a vibrant entrepreneurial base ...
14th Empretec training workshop in Luanda, Angola, in April 2021
Four certified national Empretec trainers and two master trainers: Geraldo Basilua, Rosenayde Gomes, Wilson Kitth and Tunísia Sebastião
Encouraging sustainable investments ...
National workshop to discuss and validate the Investment Policy Review of Angola in September 2019
... and a conducive transport infrastructure for trade.
Hybrid workshop to showcase good practices on Public Private Partnerships for transport infrastructure development and help prepare PPP projects in July 2020
Promoting a nation brand through developing the cultural and creative industries ...
Photo taken in Luena, Moxico province of Angola, in June 2019
Facilitating trade and helping to develop trade policies that assist in achieving national development priorities.
Participants in the training workshop for Module 2 of the UNCTAD Empowerment Programme for National Trade Facilitation Committees in March 2020
... with funding by the European Union
Código del ProyectoTFBK
Republic of Angola