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Angola forecasts economic growth of 3.5% over the next 5 years

US$3 billion to be allocated for agribusiness; minister hopes to propel country to top of producers in Africa, helped by abundant water and low population density.

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US$3 billion to be allocated for agribusiness; minister hopes to propel country to top of producers in Africa, helped by abundant water and low population density.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

The Angolan government is hoping to achieve economic growth of 3.5 per cent between 2023 and 2027, boosted by economic diversification, particularly agribusiness, which will receive funding of US$3 billion.

The figures were revealed by the Minister of Economy and Planning, Mário Caetano João, who was speaking on the sidelines of The Angolan Development Roundtable which was attended by corporate leaders and officials of the Angolan executive and public institutions. 

“We are forecasting growth of at least 4.6 per cent in the non-oil sector and between 0.5 per cent and 1 per cent in the oil sector,” he indicated, adding that this does not mean a slowdown in investments in the oil sector, but rather an “acceleration of the diversification”. 

The minister underlined that the driving force for the coming years will be an investment in agribusiness, through financing lines from the Development Bank of Angola. 

The Planagrão (National Promotion Plan for Grain Production) has already been approved, with around US$500 million per year and an equivalent amount for infrastructure and access to the production areas, as has the Planapescas (National Plan for the Promotion of Fisheries), for which the executive will channel US$300 million. 

The government is also working on a plan for livestock that will also provide US$300 million over the next three years to support animal production and derivatives, announced Mário Caetano João. 

In total the government wants to provide more than US$3 billion in funding in order to position Angola among the main African agricultural producers. 

The minister hopes that the plans will place Angola at the top of agricultural production in Africa, as the country has several comparative advantages such as low population density and abundance of water resources. 

“We believe that in five years we can be among the main producers of grains (corn, soy, wheat and rice), with corn and soy making up 95 per cent of the ingredients for animal feed, which will also boost livestock and fisheries,” he stressed. 

The minister also said that the current contribution of the oil sector to the Angolan economy is 27 per cent, representing two-thirds of revenues and about 95 per cent of exports.

“The oil-sector continues to be an important driver of the balance of payments, but it is expected that the relative weight will decrease in the coming years due to the effect of increased activity in the non-oil sector,” said Mário Caetano João.

 

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