GDP by Sector: Oil vs Non-Oil Breakdown
Angola’s $115.2 billion economy (2024, IMF) has undergone a quiet structural transformation. Non-oil sectors now account for more than 70% of GDP, a reversal from the mid-2000s when oil alone represented over 50% of output. However, this shift in GDP composition has not been matched by a corresponding transformation in export earnings or fiscal revenue, where oil still dominates at 90-95% and 50-60% respectively.
Sectoral Composition (2024)
| Sector | GDP Share | Trend |
|---|---|---|
| Services | 41.1% | Expanding – retail, telecoms, financial services driving growth |
| Industry (incl. oil) | 34.6% | Stable – oil decline offset by construction, manufacturing |
| Agriculture | 22.1% | Growing slowly – subsistence dominant, low productivity |
| Oil & Gas (subset of industry) | ~27-28% | Declining from 45%+ peak (2008) |
| Non-oil GDP | >70% | Expanding as a share of total output |
Services Sector (41.1% of GDP)
The services sector is the largest and fastest-growing component of the economy, driven by:
- Telecommunications: Angola’s mobile penetration has expanded rapidly, with Unitel and Movicel as the primary operators. Data services and mobile money platforms are growth frontiers
- Financial services: The banking sector (26 commercial banks) and emerging insurance market contribute an expanding share of value-added, supported by BNA regulatory modernization
- Wholesale and retail trade: Urban consumption in Luanda (population ~9 million) and secondary cities drives domestic commerce
- Transport and logistics: Port modernization and road rehabilitation are improving logistics infrastructure
- Real estate: Construction activity has revived from the 2016-2020 contraction, though largely concentrated in Luanda
Industry Sector (34.6% of GDP)
Industry encompasses both extractive (oil, diamonds, other mining) and transformative (manufacturing, construction) activities:
- Oil and gas: Still the largest single industrial subsector at approximately 27-28% of GDP, though production has declined from 1.9 million bpd (2008 peak) to approximately 1.03 million bpd. TotalEnergies-led projects are stabilizing output
- Mining: Diamond production (~9 million carats annually) makes Angola the world’s fourth-largest producer
- Construction: Recovering from the infrastructure boom-bust cycle, now focused on public works under the budget’s capital expenditure program
- Manufacturing: Small but growing, focused on beverages, cement, steel, and food processing. PRODESI import substitution policies aim to accelerate this sector
Agriculture Sector (22.1% of GDP)
Despite employing the majority of the labor force (particularly in rural areas), agriculture remains the most underproductive sector:
- Subsistence farming dominates, with limited commercial-scale production
- Coffee was historically a major export (Angola was Africa’s largest producer pre-independence) but production has collapsed to a fraction of historical levels
- Fisheries contribute an important but underreported share of value-added
- Climate variability, poor rural infrastructure, and limited access to credit constrain agricultural productivity
- Government programs target cassava, maize, rice, and livestock production expansion
The Diversification Paradox
The headline statistic – non-oil now exceeding 70% of GDP – masks a fundamental vulnerability. Oil’s declining GDP share is partly involuntary, driven by production declines and price volatility rather than purely by non-oil sector dynamism. Meanwhile, oil continues to generate over 90% of export earnings and 50-60% of government revenue, meaning the economy’s external and fiscal exposure remains acutely commodity-dependent.
True economic diversification requires not just a rising non-oil GDP share, but the development of non-oil export capacity and non-oil tax revenue – both of which remain at early stages.
Outlook
The IMF projects continued gradual rebalancing, with services and agriculture growing faster than the oil sector. Sustained GDP growth above 3% will require accelerating non-oil productivity through investment, infrastructure, and human capital development in a population with a median age of just 16.7 years and youth unemployment exceeding 40%.