2016 Index of Economic Freedom

Angola

overall score48.9
world rank156
Rule of Law

Property Rights15.0

Freedom From Corruption19.0

Limited Government

Government Spending50.1

Fiscal Freedom87.8

Regulatory Efficiency

Business Freedom50.3

Labor Freedom44.8

Monetary Freedom72.2

Open Markets

Trade Freedom70.2

Investment Freedom40.0

Financial Freedom40.0

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Quick Facts
  • Population:
    • 24.4 million
  • GDP (PPP):
    • $175.6 billion
    • 4.2% growth
    • 4.7% 5-year compound annual growth
    • $7,203 per capita
  • Unemployment:
    • 6.8%
  • Inflation (CPI):
    • 7.3%
  • FDI Inflow:
    • $-3881.0 million
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Angola’s economic performance has improved, facilitated by the booming oil industry. Increased economic dynamism has encouraged economic rebuilding and helped to sustain the overall advancement of economic freedom. Structural reforms have progressed in such areas as modernization of the regulatory environment.

Economic Freedom Snapshot

  • 2016 Economic Freedom Score: 48.9 (up 1.0 point)
  • Economic Freedom Status: Repressed
  • Global Ranking: 156th
  • Regional Ranking: 39th in Sub-Saharan Africa
  • Notable Successes: Fiscal Freedom and Trade Freedom
  • Concerns: Rule of Law and Regulatory Efficiency
  • Overall Score Change Since 2012: +2.2

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Background

José Eduardo dos Santos’s Popular Movement for the Liberation of Angola (MPLA) won parliamentary elections in August 2012, the second such election since the end of the 27-year civil war in 2002. Angola is Africa’s second-largest oil producer, with much of its proven reserves concentrated in Cabinda province, a region plagued by a separatist conflict. Oil production has more than doubled from about 800,000 barrels a day in 2001 to about 1.8 million barrels a day in 2015. In 2014, a French oil company invested $16 billion in an offshore project. Despite the country’s natural gas, diamonds, hydroelectric potential, and rich agricultural land, most Angolans remain poor and dependent on subsistence farming. Angola is a nonpermanent member of the United Nations Security Council for the 2015–2016 term.

Rule of LawView Methodology

Property Rights 15.0 Create a Graph using this measurement

Freedom From Corruption 19.0 Create a Graph using this measurement

The New York Times reported in 2015 that most state health care funds are stolen every year, fueling rising infant and child mortality. Government corruption and patronage remain endemic, especially in the extractive sectors. Bribery often accompanies business activity. The judiciary is subject to extensive political influence from the executive. Property registration legal fees can be prohibitively expensive. Protection of property rights is weak.

Limited GovernmentView Methodology

The top income tax rate is 17 percent. The top corporate tax rate is 30 percent, although rates for the mining and oil industries are as high as 50 percent. Other taxes include a fuel tax and a consumption tax. The overall tax burden equals 6 percent of total domestic income. Government spending amounts to 40.8 percent of GDP. The budget surplus is large due to oil revenue, but accounting shortfalls have created fiscal uncertainty. Public debt is moderate.

Regulatory EfficiencyView Methodology

A more streamlined licensing process has made it easier to start a business, but the overall regulatory environment is still not conducive to entrepreneurial activity. The formal labor market is not fully developed. With significantly lower world oil prices dictating budgetary austerity, the government reduced fuel subsidies several times in 2015, pushing inflation higher.

Open MarketsView Methodology

Angola’s average tariff rate is 4.9 percent, and its trade and investment policies are less open than the global average. The state owns most land, and bureaucratic barriers deter foreign investment. The growing banking sector has more than 20 banks in operation. Public utilization of banking services, however, remains low; only about 10 percent of the population maintains a bank account. The capital market is underdeveloped.

Country's Score Over Time

Bar Graph of Angola Economic Freedom Scores Over a Time Period

Country Comparisons

Bar Graphs comparing Angola to other economic country groups Download Charts

Regional Ranking

rank country overall change
1Mauritius74.7-1.7
2Botswana71.11.3
3Cabo Verde66.50.1
4Rwanda63.1-1.7
5Ghana630.0
6Seychelles62.24.7
7South Africa61.9-0.7
8Namibia61.92.3
9Madagascar61.1-0.6
10Côte d'Ivoire 601.5
11Swaziland59.7-0.2
12Benin59.30.5
13Uganda59.3-0.4
14Burkina Faso59.10.5
15Gabon590.7
16Zambia58.80.1
17Tanzania58.51.0
18Senegal58.10.3
19Kenya57.51.9
20Nigeria57.51.9
21The Gambia57.1-0.4
22São Tomé and Príncipe 56.73.4
23Mali56.50.1
24Djibouti56-1.5
25Mauritania54.81.5
26Niger54.3-0.3
27Cameroon54.22.3
28Burundi53.90.2
29Togo53.60.6
30Guinea53.31.2
31Mozambique 53.2-1.6
32Comoros52.40.3
33Sierra Leone52.30.6
34Liberia52.2-0.5
35Guinea-Bissau51.8-0.2
36Malawi51.8-3.0
37Ethiopia51.50.0
38Lesotho50.61.0
39Angola48.91.0
40Democratic Republic of Congo46.41.4
41Chad46.30.4
42Central African Republic45.2-0.7
43Equatorial Guinea43.73.3
44Republic of Congo 42.80.1
45Eritrea42.73.8
46Zimbabwe38.20.6
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