Report Coverage
This report focuses on The Agri-business Sector in Angola and includes country information and information on the state and size of the sector, various sub-sectors including coffee, livestock, maize and dairy, latest available production figures and developments and influencing factors. There are profiles of five companies including Tahal Group, an Israeli civil works company, which has assisted in the development of a number of agricultural projects, Fazenda de Santo Antonio, Angola’s largest irrigated farm, and Group Lider, which has fruit and vegetable farms.
Introduction
Agriculture accounted for about 11% of Angola’s gross domestic product (GDP) in 2018. The sector provides employment, both formal and informal, for about half of the Angolan population. However, most of Angola’s agricultural sector is made up of subsistence farming that uses rudimentary techniques and little infrastructure or use of inputs such as fertiliser, while farmers have little access to finance. Angola has few commercial farmers – about 91% of farm land in the 2018/2019 agricultural year was cultivated by smallholders and just 9% by commercial farmers. Smallholders produced 17.5 million tons of agricultural products. \r\n\r\nThe country is highly dependent on food imports. In 2018, Angola imported about 46% of its food, according to World Bank and between 2017 and 2019, the country spent €8bn on food imports, more than half used to buy vegetables, fruits, cereals, tubers and meat. Only about 4.9 million hectares of land is under cultivation out of a total of 35 million hectares of arable land and 59.1 million hectares of agricultural land (arable (crop) or pasture). \r\n\r\nDespite this, Angola has the natural resources to become one of Africa’s leading agricultural countries, as the diverse and fertile region is suited to a variety of crops. It also has an abundance of fresh water and arable land. In addition, after almost 27 years of civil war, international landmine clearing efforts have opened up extensive areas of land for farming. \r\n\r\nThe coronavirus pandemic is likely to spur initiatives to boost local food production. Angola-South Africa Chamber of Commerce and Industry (CACIAAS) managing director Kilson Kalanda says initiatives were already underway before the pandemic to boost local production under the government’s Programme to Support National Production, Export Diversification and Import Replacement (Prodesi) and that it is likely that these would not get added attention.\r\n\r\nThe major agricultural commodities produced include cassava (a root vegetable), bananas, potatoes, maize, sweet potatoes, citrus, and pineapples. Angola was one of the world’s biggest coffee producers before the civil war broke out in 1975. Rehabilitation of the plantations has been ongoing since 2000. Livestock also holds strong potential in Angola, with a vast natural habitat for grazing and water resources throughout the country.
Strengths
• Available arable land.
• Young, fast growing and rapidly urbanising population.
Weaknesses
• High dependence on food imports.
• Limited access to credit.
• Local use of technology and mechanisation.
• Management and technical skills shortages.
• Most small-scale farmers cannot afford production inputs such as fertiliser, pesticides and improved seed.
• Weak infrastructure.
Opportunities
• Foreign funding available to commercial farmers.
• The state’s privatisation of agribusinesses and economic diversification initiative.
Threats
• Weak economic outlook given coronavirus and reliance on oil.
Outlook
According to the World Bank, a small but growing agribusiness sector is developing linked to rising demand in urban centres. It says spending on food and non-alcoholic beverages is expected to increase from US$15bn in 2017 to US$21bn by 2021. Linked to this, consumption per capita may increase substantially in years to come, given that South Africa\'s consumption per capita is 22% higher than Angola’s at present, with the population set to grow to over 67 million by 2050, according to Angola\'s National Institute of Statistics. However government efforts to diversify the economy and spur growth in the agriculture sector are likely to slow in 2020 at least, as the government focuses on tackling the coronavirus pandemic. One positive effect for the sector is that the pandemic is likely to spur initiatives to boost local food production. It remains to see how effective these will be in replacing the large amount of food imports that the country currently depends on.
The Agri-Business Sector in Angola
2020
Full Report
R 1 900.00(ZAR) estimated $108.67 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 76.07 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 2 |
| 3. | DESCRIPTION OF THE INDUSTRY | 4 |
| 3.1. | Industry Value Chain | 6 |
| 3.2. | Geographic Position | 9 |
| 4. | SIZE OF THE INDUSTRY | 10 |
| 5. | STATE OF THE INDUSTRY | 12 |
| 5.1. | Local | 12 |
| 5.1.1. | Regulations | 18 |
| 5.1.2. | Enterprise Development and Social Economic Development | 19 |
| 5.2. | Continental | 20 |
| 5.3. | International | 20 |
| 6. | INFLUENCING FACTORS | 21 |
| 6.1. | Government Support | 21 |
| 6.2. | Economic Environment | 22 |
| 6.3. | Technology, Research and Development (R&D) and Innovation | 23 |
| 6.4. | Foreign Aid | 23 |
| 6.5. | Labour | 24 |
| 6.6. | Marketing | 24 |
| 7. | COMPETITION | 24 |
| 7.1. | Barriers to Entry | 25 |
| 8. | SWOT ANALYSIS | 25 |
| 9. | OUTLOOK | 26 |
| 10. | INDUSTRY ASSOCIATIONS | 26 |
| 11. | REFERENCES | 27 |
| 11.1. | Publications | 27 |
| 11.2. | Websites | 27 |
| APPENDIX 1 | 29 | |
| Summary of Notable Players | 29 | |
| COMPANY PROFILES | 30 | |
| FAZENDA DE SANTO ANTONIO | 30 | |
| GRANDES MOAGENS DE ANGOLA - GMA LTDA | 32 | |
| GRUPO LIDER S.A. | 34 | |
| INDUVE S.A. | 36 | |
| TAHAL GROUP INTERNATIONAL B.V. | 38 |
