Oil & Gas

Earlier this month, President Joe Biden became the first sitting U.S. president to visit Angola, marking a significant step in U.S.-Africa relations. During his three-day trip, Biden met with Angolan President João Lourenço in Luanda, emphasizing the importance of clean energy investments. The visit focused on the Lobito Corridor, a key infrastructure project connecting Angola to the Democratic Republic of the Congo’s copper and cobalt mines, and the U.S.-funded solar initiatives aimed at powering rural areas. However, Biden’s claims about Angola’s energy progress, particularly the role of solar power, raised questions regarding their feasibility and accuracy.

Angola’s energy mix tells a different story from Biden’s remarks. While solar PV projects are growing, they represent just 2.5% of Angola’s electricity generation, with hydropower dominating at 70%. Biden’s assertion that solar will help Angola achieve 75% clean energy by next year overlooks hydropower's role and exaggerates solar’s current impact. Critics argue that promoting solar as a cornerstone of Angola’s energy future may lead to higher costs and less reliability compared to hydropower and fossil fuels, which remain crucial to Angola’s energy landscape.

Angola’s abundant oil and gas reserves, including 9 billion barrels of crude oil and 11 trillion cubic feet of natural gas, offer a more immediate solution to the country’s energy and economic needs. Investments in hydrocarbon production, refining capacity, and natural gas power plants could provide affordable and reliable energy while improving industrial output and access to clean water and modern farming tools. However, leveraging these resources requires addressing persistent corruption and insurgent violence, particularly in the oil-rich Cabinda province, which deter foreign investment and inflate production costs.

Biden’s focus on clean energy aligns with global climate goals but may not address Angola’s most pressing needs. A strategy centered on fostering free-market policies and reducing corruption could unlock Angola’s economic potential and improve living standards. Without these changes, Angola’s vast natural resources may continue to benefit a select elite rather than lifting the broader population out of poverty.