World Bank urges Angola to pursue inclusive financial development reforms

The World Bank's Angola Economic Update urged inclusive financial development reforms after real GDP growth reached 4.4% in 2024, its highest since 2014. The report's focus on financial inclusion, diversification, and FATF compliance offers a reference for emerging economies, including India, pursuing equitable growth.

The World Bank's Angola Economic Update, titled Boosting Growth with Inclusive Financial Development, urged a strategic pivot toward inclusive financial development after Angola's real GDP growth reached 4.4% in 2024, its highest since 2014, driven by oil-sector recovery and diamond extraction. From 2016 to 2020 the economy contracted 10.4% due to oil overdependence and commodity price shocks. A moderate 2.9% GDP growth is forecast for 2025-2027, which the report deems insufficient to meaningfully uplift living standards without targeted structural reforms.

Rural households, women, older adults, and small businesses are directly affected, as the report spotlights significant disparities in access to credit, savings, and digital financial services, particularly outside Luanda and in regions like the Lobito Corridor and secondary cities. World Bank Country Manager Juan Carlos Alvarez stressed that reforms must be matched with bold financial policies supporting underserved sectors and vulnerable populations. Inclusive financial development can reduce income inequality, empower small businesses, and catalyse sustainable job creation across marginalised communities.

Angola should expand financial infrastructure into remote areas, scale up digital payment systems, strengthen MSME lending frameworks, improve transparency in financial schemes, and enhance the regulatory environment for microfinance and insurance. The report urges implementing the Financial Action Task Force (FATF) action plan and closing gaps in anti-money laundering and counter-terrorist financing protocols. By modernizing financial regulation, leveraging digital innovation, and prioritizing financial education, Angola can unlock its informal economy and build long-term resilience, including climate resilience.

Key figure — GDP growth: 4.4% in 2024, Angola's highest since 2014