Angola

As a lower-middle income country with a per-capita income of $ 1.880 in 2022, Angola benefits from the EU's "Everything but Arms" (EBA) scheme as the country is still maintains the status as a least developed country (LDC). Currently, Angola is scheduled to graduate from LDC status on 12 February 2024 which would imply a graduation from the EBA scheme three years later. Preferential imports to the European market summed up to €46,9 million in 2021.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Angola flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

35,59 M

Population

account_balance
Presidential Republic

Government

trending_up

3.00%

GDP Growth

equalizer

22.30%

Inflation

money

$ 106,78 B

GDP

28 v

Freedomhouse index

4 -

ITUC Global Rights Index

30.5 ^

Environmental Performance Index

Facts about Angola's economy

Oil sector dependency

Economic development in Angola is mainly driven by the oil sector. Growth in the oil sector especially contributed to the country’s reconstruction following the 27 year long civil war which ended in 2002. However, the dependency on the oil sector also makes Angola vulnerable to fluctuations on the world market. As a result, Angola’s economy was heavily hit by the global recession in 2008

Export Products

Mineral fuels and oils are by far the most important export product for Angola, followed by diamonds and fish products.

Trade Partners

Angola's most important trading partner is China with a share of 36.7 %. Other important trading partners are the EU and India which account for 25.9% and 9.6% respectively.

Economic Structure

The Angolan economy is dominated by oil production, which accounts for about 47% of the GDP. The manufacturing sector centers around petroleum refineries and the production of equipment for the petroleum industry. Other industries include processed food, textiles, and electrical goods. The majority of Angola's population is employed in the agricultural sector, which is dominated by small-scale subsistence farming.

Usage of EBA Preferences

Currently less than 1% of overall EU imports from Angola make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at 56.6%.

Trade with the EU

Total trade with the EU amounted to € 17,821 million in 2022. The EU is the second most important trading partner, but by far the most important source of imports. 31.3% of imports originate in the EU. 24.2 % of Angolan products are exported to the EU market.

Angola and the EU (2022)

Imports from Angola by product section

Imports from Angola over time (in € m)

ANGOLA AND THE EU’s GSP

Economic Impact

1%

Only a tiny fraction of Angola's exports to the EU are eligible for EBA preferences

56.60%

Angola's utilisation rate decreased from 85% in 2020 to 57% in 2022.

Preference utilisation and export diversification

Angola's imports to the EU

Preference Utilisation vs. total eligible imports

Angola’s preference utilisation rate showed significant fluctuations between 2020 and 2022. Since 2017, the preference utilisation rate follows a positive trend, indicating that the country made increasing use of its preferential access to the European market. However, the utilisation rate fell from a very good 93% in 2021 to 56% in 2022. At the level of the product section, most major product groups make considerable use of preferences. This includes for example exports of fish products, fruits and vegetables, as well as coffee, tea and spices, for which preferential tariffs were used for more than 99% of eligible exports. Preferences remain underutilised for some sections. No or very little preferences are currently used for eligible exports of machinery, instruments, transport equipment and mineral products.

The largest product sections under EBA

Almost 95% of total EU imports from Angola is accounted for by mineral products. However, the majority of these is traded under MFN duties. Imports under the GSP are concentrated on fish and crustaceans, at 100% utilisation rate.

SUSTAINABLE DEVELOPMENT

Angola's preferential access to the EU market, as a beneficiary of the EU's EBA scheme, is not bound to the ratification of international conventions. Nonetheless, Angola maintains a high level of ratification of fundamental international conventions on human rights and labour standards. Angola has ratified 14 out of 15 core UN and ILO conventions and signals further commitment through the ratification of 8 environmental protection conventions and 4 conventions on good governance.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Angola Bilateral Development Assistance

DG INTPA

Access all info about EU-Angola relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/angola_en

Opportunities in Angola

  • The government has taken steps to promote private sector investment in a number of priority sectors including for example agriculture and agro-industry, fisheries, animal products, forestry, and clothing
  • Solid external position
  • Large investments in the expansion of domestic infrastructure, including the modernization of ports and airports and the expansion of connections to rural parts of the country
  • Largely unexploited mineral resources
  • Favourable climate for enhancing activities in the agricultural sector

Contact points