The kwanza’s rollercoaster: navigating currency storms, capital flows and revived inflation

D3

SENSITIVE RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in August 2023.

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GDP USD 72.6bn (World ranking 73, World Bank 2021)
Population 33.9mn (World ranking 43, World Bank 2021)
Form of state Presidential republic
Head of state
João Lourenço (President)
Next elections 2027, presidential and legislative
  • Oil & gas, metals and agriculture continue to attract businesses despite a challenging environment and temporary currency restrictions.
  • Higher-than-average historical inflation has increased resilience and enhanced the central bank's ability to act on rates amid a positive trade balance.
  • Non-oil sector growth potential remains, with diamonds, agriculture and natural gas receiving investments from Europe.
  • Elevated exposure to oil prices and foreign investment caused another substantial currency depreciation in H1 2023.
  • Revival of high inflation due to fuel-subsidy reduction and currency devaluation weighs on growth potential and living standards.
  • Persistent income inequality and low educational attainment hinder productivity and expertise.

Trade structure by destination/origin

(% of total, annual 2021)

Exports Rank Imports
China 60.7%
1
19.4% China
India 9.6%
2
11.2% Portugal
Spain 3.3%
3
7.2% Togo
United States 3.0%
4
4.8% India
Portugal 2.9%
5
4.6% Italy

Trade structure by product

(% of total, annual 2021)

Exports Rank Imports
Petroleum, petroleum products and related materials 86.5%
1
12.2% Petroleum, petroleum products and related materials
Gas, natural and manufactured 7.2%
2
6.6% Other industrial machinery and parts
Crude fertilizers other than division 56, and crude minerals 3.8%
3
6.4% Cereals and cereal preparations
Other transport equipment 1.4%
4
5.6% Road vehicles
Power generating machinery and equipment 0.1%
5
4.7% Specialised machinery
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