Oil accounts for around 40 pct of Angola’s economy

27 May 2014

The weight of oil within the Angolan economy has fallen and now accounts for around 40 percent of the country’s gross domestic product (GDP), Angola’s  Oil Minister, Botelho de Vasconcelos said.

Speaking to daily newspaper Jornal de Angola, the minister said that in the recent past oil had accounted for between 56 and 58 percent of the economy and added that this was an important indicator “as it shows that the specific weight of oil is starting to reduce.”

According to Botelho de Vasconcelos, the government’s aim is to reduce this level over the next few years – despite announcing a rise in oil production – by diversifying the Angolan economy.

Angola is currently the second-largest oil producer in sub-Saharan Africa and the country’s government plans to achieve daily oil production of 1 million barrels in 2015, which is significantly higher than current levels.

Crude oil accounts for 97 percent of exports and 80 percent of tax revenues, but the oil industry employs just 1 percent of the population.

On Monday Angola’s Secretary of State for Industry, Kiala Gabriel, said that manufacturing industry in the last four years had accounted for an average 6.25 percent of GDP.

Noting that this figure needed to rise to 25 percent, the Secretary of State said that he expected annual growth of 10 percent in the 2013-2017 period. (macauhub/AO)