Angola recently received $300 million to fund its agricultural industry. This comes as the country is trying to diversify its economy and be known for something different. What is the future of the agricultural industry in Angola, and can the country successfully move away from reliance on oil?
A future with sun and soil
Angola is blessed with resources, but it still struggles as a Third World country. The country produces more petroleum exports than any other country in Saharan Africa. This is why oil makes up more than 90% of the exports from Angola. However, other sectors, including the ecommerce industry, are picking up. The ease of buying and selling online is better when using Angola Classifieds and other businesses.
The country also has diamonds. It is the third-largest producer of diamonds in Africa. Sadly, the government still struggles with securing diamonds due to smuggling. The country also has iron and has mined it since 1957.
Now, the country is trying to move away from its focus on these natural resources and focus on the power of the soil and the sun. Angola has an abundance of arable land and freshwater. The country’s location on the Atlantic coast makes it a perfect spot for agricultural investment.
Recently, there has been a rise in the demand for local food. With a rising population, investing in agriculture will solve a lot of the country’s problems. Agricultural production in the past 20 years has slowed down. The country has the capacity to produce much more using its arable lands.
The president, João Lourenço, has made some moves to promote investment and boost competitiveness in the agricultural industry. This started with privatization covering 195 companies. Laws have also been changed to promote private investment and market competition. Outlets such as https://ambo.market/ are good examples of this private investment.
Potential gold mines for the country
A potential gold mine for the country when it comes to agriculture is coffee and sugarcane exports. The country used to be a significant producer and exporter of these products, but exports have ceased in the past 30 years because of a lack of investment. Angola previously produced more than half of its food before 2019, when there was a currency devaluation.
Regardless of these challenges, the output from the agricultural industry has been rising. The recent investment hopes to support the export of agricultural products.
Agriculture has been the primary source of income for most of the people living in rural areas in Angola. So far, small-scale farmers are in the majority, but many of these farmers focus on farming staple crops. With government support, there can be an increase in output and productivity in this sector.
The power of the sun
Besides arable land for planting, Angola also has one of the highest solar radiation levels in the world. Such a powerful resource can be harnessed to electrify major parts of the country. Currently, more than half of the country’s population does not have access to stable electricity.
While this does not seem like a problem, it plays a large role in energizing the agricultural sector. Power can also attract a younger generation to rural areas to engage in agriculture. Young people may not willingly move back to rural areas, but if there’s a promise of economic growth, they may.
These young people can use clean energy and modern agriculture to create wealth and innovation. Countries like Tanzania are already using these methods to increase their food production. The government is supporting rural electrification with youths at the forefront.
Other countries, such as India, encourage smallholder farmers to boost crop yields using solar power irrigation systems. The case is similar in Vietnam, where farmers use sustainable farming practices to foster agricultural growth.
Using the power of the sun in Angola can address more than one problem so far. The problem of the domestic food demand with the rising population also makes it easier for high-value exports of specialty crops, such as avocados. This can only be done if the government collaborates with local communities and locates infrastructure to be developed for these needs.
Using clean energy requires initiative that promotes sustainable practices such as reduced carbon profile, hydroponics, soil conservation, drip irrigation, and crop diversification.
What the future holds for the country
The sector is expected to grow significantly, and the government’s initiatives and support from the international community have been helpful in transforming the industry. The effort from the Angola commercial agricultural project financed by the World Bank is also helping to make sure that the sector continues to rise. This is why they released $300 million to help Angola transition from subsistence farming to farming that is climate resilient.
However, there have been challenges. The country has faced severe droughts, and the impact of climate change is more visible. These factors have impacted agricultural productivity and food insecurity for the growing population. Presently, the country struggles with a severe drought, which threatens 1.58 million people in the southern provinces.
The only way the country can experience growth in the agricultural sector is to become a powerhouse. Angola has to enhance its agricultural systems to match the effects of global warming. This can include water resource management and proper irrigation systems.
Presently, the sector is seeing some uptick in investment levels. A major retailer known as Alimenta Angola is presently expanding its horticultural production. Other companies are investing in banana exports to European countries and regional markets.
There is also a company in the coffee production and processing sector that focuses on investing in local growth and coffee processing. Another beverage company announced that it will invest in corn production.
While all of these private investments are beneficial for the agricultural industry in Angola, the effort will be wasted if laws are not reformed and regulations are not improved. They will also need to invest in transport services, information, and technology.
Also, if there is access to foreign exchange, businesses in the country will thrive since the exchange rate will be liberalized. Additionally, there will need to be proper coordination of business value chains.
With efforts in these sectors, the agricultural industry in Angola will take off.
