Amidst fertile lands and diverse ecosystems, Angola’s agriculture sector, a vital pillar supporting approximately 46% of the country’s population, is set for a significant transformation. As the nation currently leverages its robust oil and gas sector, accounting for over 90% of exports and generating nearly $39.94 billion in 2022, a paradigm shift is underway aiming for increased economic diversification, social inclusion, and climate resilience.
Efforts are being concentrated to create a favourable environment for micro, small, and medium-sized agricultural enterprises, with the aim of transforming Angola’s economic model into a private sector-led, inclusive, and climate-resilient one. Vera Daves de Sousa, minister of finance, foresees the country’s oil sector aiding the development of agriculture, along with fisheries and industry.
In 2021, agriculture accounted for about 9.5% of Angola’s GDP. The country, rich in ecological diversity and fertile soils, is capable of becoming a leading agricultural producer in Africa. Despite this immense potential, only 10% of Angola’s 350 000 square kilometres of arable land is currently being cultivated, with small to medium-sized farms, predominantly used for subsistence farming, making up around 88% of all farms.
As climate change becomes an increasingly critical global concern, Angola is feeling the urgency to make its agricultural sector more resilient. Through the Angola Commercial Agriculture Project, funded in collaboration with the World Bank and the French Development Agency, up to $230 million is being mobilised to enhance agricultural productivity and increase market access for commercial farms.
As of 2023, this initiative has resulted in the approval of 25 business plans and issued 16 partial credit guarantees, spurring over $1 million in local investment.
In 2022, the World Bank further approved the $300 million Smallholder Agricultural Transformation Project. The project’s goal is to expand Angola’s efforts to transition towards climate-resilient farming, increase agricultural production, and encourage smallholder farmers to adopt climate-smart agricultural techniques.
Together, these initiatives are set to improve food security, nutrition, and environmental sustainability, while decreasing the country’s dependence on imports. For instance, Angola currently imports approximately 150 000 tonnes of wheat flour each year.
To address this, the Angola Credit Support Program has provided $20 million to Induve, an Angolan processing company, to construct a wheat mill with an annual processing capacity of 255,000 metric tonnes of wheat.
Rapid urbanisation, infrastructure advancements, and an increase in imported product availability are transforming Angola’s agricultural landscape. Political stability, substantial hydrocarbon and mineral wealth, and access to large, populous markets position the country’s agricultural sector as an attractive prospect for international investors.
In step with these changes, the Angola Oil & Gas 2023 conference and exhibition, organised by Energy Capital & Power, will take place in Luanda from 13 to 14 September 2023. This significant event promises to bring together African energy and petroleum ministers, global investors, and industry leaders, fostering discussions, exhibitions, and opportunities for deal-making, with the potential to accelerate growth in the country’s diverse energy industry.
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