Angola’s path to prosperity lies in its sun and soil, not its oil

As Angola seeks a sustainable future, it is evident that the nation’s long-term prosperity lies in its sun and soil rather than its oil.

Its future lies in harnessing its abundant solar resources and vast arable lands to transform neglected rural areas into hubs of innovation and economic rebirth. Doing so would generate business opportunities and dignified work, especially for youth and women, and diversify an economy long dominated by oil.

Oil, which constitutes 30 percent of Angola’s gross domestic product and more than 90 percent of exports, operates largely in isolation from the rest of the economy. While generating significant revenues, it is subject to large price fluctuations, creates few jobs and rarely connects with local businesses.

As a result, communities have become more vulnerable to poverty, with an unemployment rate about 30 percent, and a staggering 53 percent unemployment rate among youth under 25.

A mass exodus to Angola’s capital, Luanda, reflects this vulnerability. Nearly one-third of the population is now concentrated in the province of Luanda, leaving rural communities depopulated and underdeveloped. One consequence is a growing food bill, as the country imports some $3bn worth of food every year.

A similar mass exodus from rural to urban areas is affecting sustainable rural development across much of Africa. As of 2023, while Angola’s urbanisation rate was 69 percent, rates across the continent reached up to 91 percent in Gabon, 76 in Sao Tome & Principe, 74 in Equatorial Guinea and 72 in Botswana. This more than often leads to heightened challenges with housing, water scarcity and food security.

Angola could lead the way in reversing this trend by taking advantage of its remarkable natural resources. It boasts some of the highest levels of solar radiation in the world. This powerful natural resource could be harnessed to electrify rural areas (currently, close to half the country’s population lacks access to electricity) and energise the agricultural sector. Furthermore, only about 10 precent of Angola’s arable land is being cultivated. The potential for agriculture is vast.

But a key challenge remains: How to attract young people back to rural areas they fled, returning not as a last resort, but as a promising economic and livelihood alternative?

The answer can be found in modern agriculture, not the traditional manual labour-intensive sector of the past. Powered by clean energy and transformed by technology, Angola’s agricultural renaissance could offer a wealth of possibilities for innovation and growth.