Angola Puts Its State Giants Up for Sale to Break the Oil Habit
ANGOLA · ECONOMY
Key Facts
—State sell-off: Angola’s privatisation programme targets telecoms firm Unitel, airline TAAG, diamond miner Endiama and bank BFA.
—Crown jewel: State oil champion Sonangol plans to float up to 30 percent, though its listing has slipped toward 2027.
—Off oil: President Joao Lourenco has made diversifying away from crude the centrepiece of his second term.
—Inflation cooling: Price growth has fallen from about 31 percent in mid-2024 to 14.6 percent in January 2026.
—Faster growth: The economy is expected to expand around 3 to 4 percent a year through 2029, up from 0.8 percent.
—New gas: Angola’s first non-associated gas project came online in 2026, with a first gas discovery at Block 1/14.
Angola’s privatisation drive is putting its biggest state companies up for sale, from telecoms giant Unitel to a stake in oil champion Sonangol, as President Joao Lourenco tries to wean Africa’s second-largest crude producer off oil.
What the Angola privatisation drive covers
The Angola privatisation drive is the most visible sign of a country trying to reinvent its economy. Under a programme known as Propriv, the state is selling stakes in some of its largest firms.
The list is striking. It includes the telecoms giant Unitel, the national airline TAAG, the diamond miner Endiama and the bank BFA, which is lined up for what would be Angola’s biggest-ever share listing.
The aim is twofold: raise money and bring in private discipline. For decades these firms were instruments of the state, and often of patronage.
The programme has run for several years but is now picking up pace. Officials have promised to push the biggest names through before the window closes.
Sonangol, the crown jewel
The most closely watched sale is Sonangol, the state oil company at the heart of the economy. The government plans to float up to 30 percent of it to local and foreign investors.
The timing, though, has slipped. Sonangol was recently dropped from the current privatisation list because there was not enough time to complete a listing, with the share sale now pointing toward 2027.
Delays to fuel-subsidy reform and the company’s own restructuring have weighed on the schedule. Even so, officials insist the listing is a matter of when, not if.
The company is the single largest source of state revenue, which makes selling even a slice of it politically sensitive. Getting the price and timing right matters more than moving fast.
Breaking the oil habit
Behind the sales lies a single problem: oil. Crude still dominates Angola’s exports and its public finances, leaving the country hostage to the price of a single commodity.
The danger was clear in 2025, when oil export revenue fell 22 percent to 24.4 billion US dollars. Diversifying away from that dependence is the cornerstone of Lourenco’s second term.
Oil and gas still account for the lion’s share of exports and most government income. That concentration leaves Angola exposed every time global prices swing.
A cooling economy
There are signs the strategy is starting to bear fruit. Inflation has fallen sharply, from about 31 percent in mid-2024 to 14.6 percent in January 2026.
Growth is picking up too. The economy is forecast to expand around 3 to 4 percent a year through 2029, well above the 0.8 percent average of the previous five years.
Betting on gas
Energy is being remade as well as sold. Angola’s first non-associated gas project came online in 2026, and Azule Energy made a first dedicated gas discovery at Block 1/14.
The country is also building refineries to stop importing the fuel it lacks. New plants at Cabinda, Lobito and Soyo are meant to cut a bill that today covers about 70 percent of petroleum products.
Gas is meant to power industry and cut the cost of imported fuel. It also gives Angola a cleaner-burning resource to sell as the world moves away from crude.
Courting new money
Angola is working hard to win back investors. It returned to international bond markets with a Eurobond in late 2025, part of a push to widen its pool of creditors.
Much of that effort is about reducing a heavy reliance on Chinese loans. Lourenco’s government wants Western capital and Gulf money alongside Beijing’s.
The government has leaned on reforms to make the country easier to invest in. Red tape, a weak currency and patchy contracts have long deterred outsiders.
The risks ahead
None of this is guaranteed. Privatisations can stall, fetch poor prices or be quietly shelved when politics intrudes.
Angola also remains exposed to the oil price it is trying to escape. A sharp drop in crude would drain the revenue the reforms depend on.
Why it matters
For investors and outsiders, Angola is a test case. It asks whether an oil state can sell its past and build something broader.
Success would make Angola a model for other resource-dependent economies. Failure would show how hard the oil habit is to break.
Angola is the second-largest oil producer in sub-Saharan Africa, so its choices ripple across the region. A successful pivot would be felt well beyond its borders.
Frequently asked questions
What is Angola selling in its privatisation drive?
Stakes in telecoms firm Unitel, airline TAAG, diamond miner Endiama, bank BFA, and up to 30 percent of oil champion Sonangol.
Why is Angola privatising state companies?
To raise money, attract investment and diversify the economy away from oil, the centrepiece of President Lourenco’s second term.
When will Sonangol list?
Sonangol plans to float up to 30 percent, but the listing has slipped toward 2027 after being dropped from the current privatisation programme.
Is Angola’s economy improving?
Inflation has fallen to about 14.6 percent and growth is expected around 3 to 4 percent a year through 2029.
Connected Coverage
Angola’s reforms follow the revenue squeeze we reported when its oil export earnings fell 22 percent in 2025, and the market reopening seen in DR Congo’s debut Eurobond. The creditor reshuffle is part of the contest mapped in Africa: The New Scramble.
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