Luanda, July 25, 2025 (Lusa) - The World Bank's representative in Angola said on Friday that the country “urgently needs to establish a consistent path to robust growth,” advocating a major commitment to inclusive financial development to reduce poverty.
“The Angolan economy urgently needs to establish a consistent path to robust growth to address nearly a decade of stagnation and improve conditions for poverty reduction,” said Juan Carlos Alvarez at the presentation of the World Bank's report on Angola's economy.
"There is optimism that the government's comprehensive economic reforms will produce positive results and unlock the country's potential," he added, noting that "the country can further intensify its support for key sectors that can contribute significantly to the essential process of economic diversification."
At an economic forum in Luanda today, the World Bank will present three reports on Angola: an update on Angola's economy, an economic memorandum and another dedicated to the role of the private sector in the development of this Portuguese-speaking African economy.
Called "Boosting growth with inclusive financial development", the analysis of the Angolan economy highlights last year"s strong growth of 4.4%, the highest since 2014, driven by oil, diamonds, trade and fishing, but coming after about half a decade of economic recession, with growth expected to slow to around 2% this year.
"From 2016 to 2020, the economy experienced an approximate 10.4% contraction, with an average annual decline of 2.1%; this slow growth resulted from structural challenges and heavy dependence on the oil sector, making it susceptible to global price fluctuations," says the World Bank, adding that "real GDP growth Analysts expect [Gross Domestic Product] to grow by an average of 2.9 per cent from 2025 to 2027, and living standards will continue to improve.
In its report, the World Bank emphasises the importance of promoting inclusive financial development in Angola to address significant inequality and exclusion, particularly in rural areas where access to formal banking services is limited. It warns that “compared to other countries in the region, Angolan households have less access to credit, savings and digital financial services.”
Financial inclusion, say World Bank economists, “can boost economic participation and resilience, leading to sustainable growth and poverty reduction.”
Among the reforms advocated to improve access to formal finance and promote growth in the financial sector, the World Bank recommends the development of intuitive and accessible digital payments in more rural areas, the promotion of credit to small businesses, the development of the International Financial Action Group's action plan and the promotion of financial integrity and responsible financing (AML/CFT), and increasing access to insurance for individuals and businesses, particularly insurance related to the impact of climate change.
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