Africa’s third-largest oil producer is using an oil windfall to fuel a diversification push, targeting $2 billion in non-diamond mining and rare-earth investments

The country is also in talks over a plan that could put as much as 800,000 hectares (2 million acres) of farmland in the hands of Brazilian-led agricultural companies, as it seeks to develop new sources of economic growth beyond oil and diamonds.

Crude accounts for about 90% of Angola’s export revenue, but the government is using this year’s oil windfall to finance structural reforms and attract foreign investment into other industries, Citigroup said.

Grant Carson, who oversees markets where Citi does not have a physical presence, including Angola, said improving political and economic stability was making the country more attractive for long-term investment.

The African Development Bank estimates that the non-oil sector’s share of GDP rose to 86% in 2025, from 77% in 2019, reflecting the gradual expansion of economic activity beyond crude production.

Angola’s diversification drive is also attracting regional financial institutions. South Africa’s Absa Group is establishing a representative office in the country, while Standard Bank has increased its stake in its local subsidiary to 75%, according to Bloomberg’s report.

Kenya’s Equity Group plans to expand into Angola by 2030, looking to tap into emerging trade routes for critical minerals.

Infrastructure is another priority. The country is investing in the Lobito Corridor, a US-backed, 1,100-mile railway undergoing an $866 million upgrade to transport copper and cobalt from Zambia and the Democratic Republic of Congo to international markets. A proposed additional 500-mile connection would link Zambia’s Copperbelt directly to the railway.

Angola is also pursuing major agricultural investments, including a $1.45 billion financing agreement with the World Bank for processing, logistics and agricultural services. A separate $1.3 billion deal will support its first large-scale urea and ammonia production facility.

The government is targeting another $1 billion in tourism infrastructure by the end of 2026.

The IMF expects Angola’s economy to grow 4.4% this year, while the government projects 5.5% growth in 2027, driven by a 7% expansion in the non-oil economy.