A unit of Chinese state-owned firm CITIC Construction has announced a new US$250 million investment in large-scale agricultural projects in Angola. More investment will follow in future phases, reports the Portuguese news agency Lusa.
Fan Juntao, general director of CITIC (Angola), signed the memorandum of understanding with Angola’s Minister of Agriculture and Forestry Isaac dos Anjos in Luanda. A press release from the ministry referred to the installation of modern genetic improvement laboratories for seed certification, the promotion of agricultural inputs to support the production chain of pesticides and fertilizers, and the implementation of smart storage systems in key agricultural regions, as well as agreements for purchasing agricultural products.
Corn is the priority for the first phase, as it is the primary cereal needed in the country, with soy production to follow in the second phase. “Our estimated investment in this phase is $250 million, not including future operational costs,” Fan told press, emphasising that all financing for the multi-phase project will come from Chinese investors, led by CITIC.
CITIC (Angola), Fan told reporters, has already acquired land in the provinces of Cuanza Norte (3,000 hectares) and Malanje (5,000) and begun clearing, with planting to follow once surface rights are secured.
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Initially the aim is to achieve yields of 8 tons of corn per hectare and 5 tons of soy. The company plans to expand to 20,000 hectares by next year with the long-term goal of reaching 100,000 hectares. “Our future goal is to export soy to China after meeting local needs,” he explained, emphasising the intention to introduce advanced technology into production.
Anjos called the agreement “historic” for large-scale production projects, opening up new markets for Angolan production.
“This is a unique opportunity that we cannot overlook,” he said, noting that a 40 percent local consumption and 60 percent export split has been established, with CITIC lined up as a buyer. The minister also announced the signing of an agreement with another Chinese firm, scheduled for next Thursday. “We have vast land and resources, and we are waiting for investors,” he told reporters.
While CITIC (Angola) is growing crops, the government will be working on facilitation measures, including land concessions, phytosanitary treatment and monitoring, and developing large-scale standards and protocols.
