Major Trading Partners
Angola’s trade relationships are dominated by a small number of partners, reflecting both the commodity concentration of exports (90-95% crude oil) and historical ties from the colonial and post-independence periods. China stands as the overwhelmingly dominant partner, absorbing the majority of Angola’s crude exports and supplying a growing share of imports.
Top Trading Partners
| Rank | Country | Relationship | Key Products |
|---|---|---|---|
| 1 | China | Export + Import | Crude oil exports; machinery, consumer goods imports |
| 2 | India | Export | Crude oil |
| 3 | USA | Export + Import | Crude oil exports; oil equipment imports |
| 4 | Portugal | Import | Food, beverages, construction materials |
| 5 | South Korea | Export | Crude oil, LNG |
| 6 | Brazil | Import | Food (poultry, sugar), industrial goods |
| 7 | South Africa | Import | Consumer goods, food, machinery |
China: The Dominant Partner
China’s relationship with Angola extends far beyond trade into debt, infrastructure, and strategic influence:
- Export destination: China absorbs approximately 60% of Angola’s crude oil exports, making it by far the largest single buyer. This concentration creates dependency risk – a shift in Chinese demand or sourcing strategy could significantly impact Angola’s oil revenue
- Import source: China supplies 20-25% of Angola’s imports, primarily machinery, electronics, and consumer goods
- Trade balance: Angola typically runs a trade surplus with China due to the high value of crude oil exports relative to manufactured goods imports
- Infrastructure linkage: Chinese imports of construction equipment and materials are often tied to Chinese-financed infrastructure projects, creating a circular trade-investment-debt relationship
- Currency arrangements: Bilateral trade settlement mechanisms reduce USD intermediation costs but deepen economic integration
India
India is Angola’s second-largest export market, driven entirely by crude oil demand from Indian refiners. The relationship is commercially straightforward – Angola provides crude grades suited to Indian refinery configurations, and India provides a diversification outlet from China dependency. India’s oil import demand is expected to grow as the country’s economy expands, potentially strengthening this trade corridor.
United States
The US was historically a major destination for Angolan crude, but the shale revolution has dramatically reduced American demand for African oil. The relationship has shifted toward:
- Declining crude export volumes
- Growing US exports of oil field services and equipment
- IOC operations (Chevron, ExxonMobil) creating a corporate rather than commodity trade linkage
- Diplomatic and AGOA (African Growth and Opportunity Act) trade preference framework
Portugal
Portugal’s trade relationship with Angola is rooted in colonial history and shared language. Portugal is a significant import source for food products, beverages, and construction materials, while also serving as a gateway for Angolan investment into Europe. The economic relationship extends to:
- Banking sector linkages (Portuguese banks operating in Angola)
- Diaspora remittance flows
- Tourism and education services
Regional Trade
Angola’s trade with African neighbors is limited relative to its potential, constrained by poor cross-border infrastructure, non-complementary export profiles (neighboring countries cannot absorb crude oil at scale), and limited regional integration:
- DRC: Growing border trade, primarily informal, in food and consumer goods
- Namibia: Modest trade linkage, potential for energy cooperation
- South Africa: One-directional import relationship (South Africa exports to Angola)
- SADC membership: Angola is a member of the Southern African Development Community but intra-SADC trade remains minimal as a share of total
Trade Balance Dynamics
Angola consistently runs an overall trade surplus, driven by the value of crude oil exports. However, this surplus masks the structural deficit in non-oil trade:
- Overall trade balance: Surplus of $5-10B annually (oil-driven)
- Non-oil trade balance: Deep deficit, reflecting near-total import dependency for food and manufactured goods
- FX implications: The trade surplus provides the USD inflows that sustain FX reserves ($15.3B) and fund the BNA’s FX auctions
Outlook
Trade partner diversification is linked directly to export diversification – as long as crude oil dominates exports, China and India will dominate the partner profile. Emerging opportunities include LNG exports to European and Asian markets, diamond marketing channel diversification, and gradual development of regional trade in agricultural and manufactured goods under the diversification agenda.