Yemisi Izuora
The African Bank of Oman (ABO) has signified interest in building strong presence and partnership in Africa, a development that will help expand financing of infrastructure projects across the continent.
The significance of the Banks official opening of operations on April 16 in Luanda is considered a further step toward stronger financial ties between Africa and the Middle East.
The new institution is designed to support cross-border investment and facilitate trade flows between the two regions.
Oman sees it as a financial bridge, aligned with its Vision 2040 and Angola’s long-term development strategy, Angola 2050. In its initial phase, ABO will serve around 50 multinational companies and public-sector entities. Its activities will focus on key sectors such as oil and gas, mining, manufacturing, and logistics. The bank will prioritize project financing and trade support, aiming to strengthen cross-border economic activity.
According to the African Development Bank, trade finance plays a central role in economic growth, especially in emerging markets. In 2024, intra-African trade rose by 12.4 per cent to reach $220.3 billion, driven in part by early gains from the African Continental Free Trade Area.
“The creation of ABO is part of a broader strategy to expand Oman’s investment footprint across both regions,” said Abdulsalam bin Mohammed al Murshidi, chairman of the Oman Investment Authority. “By 2040, the goal is to build effective financial arms in emerging markets and diversify revenue sources.”
The new bank adds to Angola’s financial sector, which includes about 30 institutions, at a time when regulatory oversight is tightening. Authorities have strengthened rules around banking supervision and anti-money laundering.
Angola’s banking system is evolving under ongoing macroeconomic pressure. The central bank maintained a tight monetary policy in 2025, with its benchmark rate set at 19.5 per cent, before lowering it to 17.5 per cent in 2026. The kwanza has since stabilized, and inflation has dropped sharply, from over 30 per cent in 2024 to just above 12 per cent in April 2026.
Economic growth remains moderate, at around 3.1 per cent in 2025, but its structure is shifting. Non-oil sectors are expanding at more than 5 per cent, gradually offsetting a steady decline in oil production.