Growing middle class drives economic expansion in Angola

10 December 2013

A growing Angolan middle class will help expand banking, retail and telecommunications services in Angola, according to a study drawn up by British company Eaglestone, cited by financial news agency Bloomberg.

The Angolan economy has been growing at a rate of between 5 and 7 percent this year and next year is expected to post growth of 8.3 percent, bolstered by growth in non-oil sectors, according to the analyst from Eaglestone’s Lisbon office, Tiago Dionísio.

The oil sector’s contribution to Gross Domestic Product (GDP) has fallen to 46 percent currently from 56 percent in 2002, the analyst wrote, noting that “Angola has been successful in making use of the high price of oil to diversify the economy.”

“Petrodollars have led to rapid development of other sectors, boosted by the process of urbanisation and growing aspirations of the middle class,” he said.

Construction of infrastructure and other facilities and services has doubled to 14 percent of GDP in the last decade, according to Dionísio, whilst the retail sector grew 20 percent in that period.

“The country has a tax surplus, low public debt, a more comfortable level of foreign reserves and single figure inflations,” said Dionísio, adding that “Angola is on its way to fulfilling its promise to be one of the biggest success stories in sub-Saharan Africa.”

Eaglestone, which was founded in 2001, is a London-based platform for investments in sub-Saharan Africa and has offices in Luanda, Maputo, Cape Town, Amsterdam, Lisbon and New York. (macauhub)