In Angola 2007/2008 - (Page 8) RURAL DEVELOPMENT Agricultural Investments Boost Supply grains, legumes, roots and tubers, fruits, vegetables, and industrial crops. Agricultural productivity and yield were up due to the rehabilitation of experimental stations, the operation of irrigation systems in Humpata, Cavaco, Chianga, and Mazozo, and the production of seed corn, peanuts, beans, and potatoes. Production of millet and sorghum were up 11.8%, satisfying 67% of the country’s needs. Higher output of these two products means better food security for central and southern Angola’s rural populations, who depend heavily on them. Nevertheless, the country posted a grain deficit of 41%, or 625,000 metric tons. According to sources from the Ministry of Agriculture, both imports and domestic production of seeds are now carried out in strict compliance with Law No. 7/05, which makes seed certification a requirement, and which has in turn introduced both greater security and greater production efficacy. Along with increased security, the government also offers various incentives to investors in the agricultural sector, including tax and customs incentives based on location of the investment, with greater incentives offered to priority development zones. (See page 18 for a more in-depth look at investment incentives.) Although the agricultural sector has experienced rapid growth, poor road conditions keep the country from fully reaching its production potential. Another obstacle is the absence of an adequate system for preserving and processing agricultural output. Angola is well on its way to attaining increased potential in the agricultural sector, but there is much more that needs to be done. The Angolan government, however, is committed to continued investment in the agricultural sector, which will create a stable job market and increase the quantity and quality of sustainable agriculture in Angola. Angola’s agricultural sector is under the responsibility of the Ministry of Agriculture and Rural Development. To learn more, please contact ANIP at info@investinangola.org. Daily, dozens of trucks haul hundreds of tons of corn, manioc, and other products from the fields to supply the city of Luanda, the capital and commercial hub of Angola. Increased investments and a greater focus on agriculture could be expected to reap no other result – a more abundant supply of grains, vegetables, and other produce that form the staples of the Angolan diet. Last year, an estimated USD 91.3 million was invested in agriculture, of which USD 79.9 million was provided by the government. These investments have resulted in the growth of the agricultural sector, which last year became the country’s largest employer with 4,709,122 people, representing 89% of all jobs. The sector’s 17% growth is 1.4 percentage points higher than the government’s forecast of 15.6%. The number of producer families rose 2% to a total of 2,242,439 families, and planted area also expanded, reaching 3,207,483 hectares (nearly 8 million acres), a 9% increase over the previous year. Grain production hit 880,929 metric tons, a jump of 23% over 2004 (713,400 metric tons), while corn production climbed 27.3% (734,372 metric tons), nearly meeting domestic demand. The country also produced 109,284 metric tons of beans, 66,000 metric tons of peanuts, 972,663 metric tons of potatoes, and 663,787 metric tons of sweet potatoes. A surplus of 5.2 million metric tons of fresh manioc was cropped. While many areas of agriculture have seen growth, coffee production did not rise at all, but held steady at 3,000 metric tons, the same figure recorded in 2004. Overall, the agricultural campaign yielded a total of 8.6 million metric tons of varied crops, compared with 6.8 million metric tons the previous year. Another contribution to this performance was the implementation of crop research programs, involving 8
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