The kwanza’s rollercoaster: navigating currency storms, capital flows and revived inflation
D3
SENSITIVE RISK
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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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%
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1 |
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India
9.6%
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2 |
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Spain
3.3%
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3 |
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United States
3.0%
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4 |
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Portugal
2.9%
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5 |
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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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