Angola's Agriculture: Path to Sustainable Growth
Angola, a country brimming with untapped potential, is swiftly sowing the seeds of transformation in its agricultural sector. In 2023, Angola's agriculture, forestry, and fishing sectors significantly impacted the economy, contributing 14.92% to GDP—its highest share yet! With its farmland, Angola can become a major agricultural player, not just in Africa but around the world.
The Import-Dependent Agriculture of Angola
At the heart of Angola's agricultural economy are staple crops such as corn, coffee, and bananas, which dominate both domestic consumption and export markets. For the marketing year 2024-25, corn production is projected at approximately 2.8 million metric tons (MMT), slightly below previous forecasts.
The country remains a significant net importer of food and agricultural goods, with foreign purchases exceeding $1.7 billion from over 60 countries in 2023. Over half of its food consumption relies on imports, underscoring the urgent need to boost domestic production.
Angola's agricultural sector, despite its vast potential, grapples with significant challenges that impede its ability to meet local consumption demands. With 58 million hectares available for development and 35 million hectares of arable land, only 15% of this fertile ground is currently cultivated, and just 20% is suitable for irrigation.
Furthermore, outdated farming techniques and inadequate infrastructure hinder progress, exacerbating the country's reliance on imports, such as over $135 million worth of fertilizers annually. However, this underutilization presents a golden opportunity for growth as Angola focuses on enhancing domestic production and reducing dependency on imported food. Initiatives are underway to modernize agriculture and unlock the full potential of its abundant resources.
Government Initiatives to Revitalize Agriculture
The Angolan government has been actively pursuing initiatives to revitalize its agriculture and trade sectors to bolster food security and reduce dependency on imports. One of the flagship programs is the National Plan for the Promotion of Grain Production, known as "Planagr?o." This initiative aims to significantly boost cereal production, with a particular emphasis on wheat, and is part of a broader strategy to double the country's cereal output from 3 million tons to 6 million tons annually, thereby reducing the need for imports and supporting both domestic and foreign markets.
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Complementing these efforts, the African Export-Import Bank (Afreximbank) has facilitated a $1.4 billion facility to establish a fertilizer plant in Soyo. This plant is set to enhance Angola's industrial capacity and food security, while also generating approximately 4,700 jobs. The plant will support local agriculture by ensuring a stable supply of fertilizers, reducing the reliance on costly imports, and positioning Angola as a pivotal food supplier in the region.
The Angola Smallholder Agriculture Development and Commercialization Project (SADCP or MOSAP2) has transformed the lives of 179,000 smallholder farmers. By boosting agricultural productivity and market access, it raised the proportion of produce sold from 17% to 69%, enhancing incomes and food security nationwide.
The Angola Commercial Agriculture Development Project (PDAC) and the Smallholder Agricultural Transformation Project are key to revitalizing Angola's agriculture. Supported by the World Bank, PDAC transitions farming from subsistence to market-driven through technical and financial aid, enhancing corn, coffee, and poultry competitiveness. Meanwhile, the Smallholder Project boosts productivity and resilience by promoting climate-smart practices and strengthening value chains, ensuring sustainable growth and food security.
A few months ago, the Africa Finance Corporation (AFC) made plans to mobilize around $411 million for a road connectivity project in Angola. This initiative, led by Angola’s Ministry of Public Works, Urban Planning and Housing, involves constructing 186 bridges and rehabilitating the road network. The project aims to reduce transport costs, improve connectivity, and support the agriculture sector, aligning with Angola's economic diversification efforts.
Final Thoughts
These initiatives aim to increase output while creating a self-sufficient food system for a growing population and global exports. The government focuses on sustainability, technology, and skills to elevate agriculture's role in Angola's economy.
As Angola develops its agricultural sector, Falconbridge Resources stands out by connecting traders and markets. They are a vital ally in bridging the gaps between ambition and achievement in Angola’s agricultural journey—because every great harvest needs a little help!