DSpeaking at the 2nd International Conference on Energy and Water taking place in Luanda, the Minister of State for Economic Coordination, José de Lima Massano, said the national economy has grown at a significant pace over the past two years, regaining in 2025 its position as Africa’s 6th largest economy.
The minister stated that Angola is building a more diversified, inclusive, sustainable and integrated economy, noting that the latest GDP data shows that agriculture and forestry account for nearly 25% of national economic activity, followed by the trade sector at 19.27%.
He said that over the past two years the economy has recorded strong growth, with Angola reclaiming its position as the 6th largest economy in Africa and the 3rd largest in sub-Saharan Africa in 2025.
“The commitment to integrated economic and social development remains, as set out in our National Development Plan, in which the energy and water sector plays an increasingly important role,” he said.
Massano also noted that Angola has moved from a system marked by energy shortages and frequent power cuts to one characterised by the expansion and modernisation of generation, transmission and distribution infrastructure.
The minister said Angola’s geographic position and vast hydro and solar potential place it in a strong position to play a key role in Africa’s energy architecture. Major projects such as the Caculo Cabaça and Baynes dams (the latter in partnership with Namibia) are expected to boost capacity and strengthen continental energy integration.
He said electricity production has nearly quadrupled, rising from 1,772 MW in 2012 to 6,400 MW in 2025, while high-voltage transmission lines now extend over 5,950 kilometres, alongside an expanded distribution network.
According to the minister, this transformation is also visible in the national energy mix. In 2012 the system was mainly thermal-based, whereas today around 70% of electricity consumed in Angola comes from renewable sources, with hydropower alone accounting for more than 60%, contributing to lower operating costs and environmental protection.
In the water sector, he said progress is also significant, with ongoing projects aimed at increasing potable water production and expanding access. In Luanda and Icolo e Bengo, the Bita and Quilonga Grande projects will together produce more than 777,000 cubic metres of water per day, benefiting around 7.5 million people.
Massano also highlighted drought response programmes in southern Angola, aimed at improving water access and strengthening community resilience in Cunene, Namibe and Huíla, with direct impacts on small-scale agriculture, livestock farming and living conditions.
In Namibe province, 43 dams are being rehabilitated, financed through Angola’s first issuance of green bonds. New dam projects such as Bentiaba and Bero are underway, while others including Carumjamba, Giraúl and Inamangando are in preparation. In Cunene, dams such as Calucuve, Ndue and Cova do Leão are nearing completion, alongside the operational Cafu canal, which has already begun supplying water to communities heavily affected by climate change.
The minister said Angola’s geographic position and vast hydro and solar potential place it in a strong position to play a key role in Africa’s energy architecture. Major projects such as the Caculo Cabaça and Baynes dams (the latter in partnership with Namibia) are expected to boost capacity and strengthen continental energy integration.
With growing installed capacity and emerging electricity surpluses, Angola aims to expand transmission and distribution networks through private sector partnerships to accelerate access, particularly in rural areas, as well as enable electricity exports to central and southern Africa.
Massano said important legislative reforms have been introduced to encourage private investment across the entire energy value chain and called on both domestic and foreign investors to take advantage of Angola’s regional integration potential and economic growth trajectory.
He concluded that expanding access to electricity and improving water security are creating better conditions for the growth of agriculture, manufacturing, mining, tourism, telecommunications and logistics.
Source: Forbes
