Agriculture in Angola - Growth, Trends, and Forecasts (2023-2028)

Angola’s agriculture market is projected to record a CAGR of 5.6% during the forecast period.

Key Highlights

• Agriculture provides food, income, and work for two-thirds of the Angolan population, with women making up the majority of the labor force. The country has many agroecological zones that are suitable for the growth of a wide range of tropical and subtropical crops for both domestic and export consumption.
• Angola has enormous agricultural potential due to natural advantages such as good soils, ample water, and a pleasant climate. The Angola Ministry of Agriculture has made strategic policies to make Angolan coffee competitive in the region again. Cassava, corn, beans, potatoes, sweet potatoes, soy, bananas, coffee, rice, and other vegetables and fruits are currently Angola's principal crops.
• The hills and valleys, particularly in the southern provinces, are the most productive. The rainy season lasts from October to May and is considered the best time for vegetable cultivation. Tomatoes are grown throughout the dry season, which lasts from June to September. The favorable climatic conditions for crop production and government policies encouraging the participation of private players in developing the agricultural sector, such as the National Medium-term Development Plan for the Agricultural Sector (PDMPSA), are some of the factors driving the market’s growth.

Angola Agriculture Market Trends

Favorable Government Policies Encouraging Agricultural Production

The conducive government policies are promoting agriculture in Angola. Agricultural development to diversify the economy and build domestic food production capacity is a featured element of the Angolan government’s National Development Plan for 2018-2022, which will decrease the country’s dependence on imported food. The Angolan government issued the Presidential Decree PAPE (Action Plan for Employability Promotion) to support this development.

Angola's agricultural support to producers is centered on maize and beans. The support is high for these commodities compared to other countries. Agriculture public support policies and programs contributed 45 percent of total gross revenues perceived by maize farmers. In comparison, beans received up to 28 percent in recent years. This has resulted in increased bean production. For instance, bean production increased from 2.1 million metric tons in 2017 to 2.5 million metric tons by 2019. There was a slight decline in production in 2020 due to various factors, including the pandemic.

In its efforts to diversify the economy and address climate change, the Government of Angola has been revitalizing its rural economy and its vast agricultural resources. The USD 300 million Bank-financed Climate Resilience and Water Security Project (RECLIMA) was approved in March 2022 & it will assist the government in improving water supplies and strengthening water resource management in Angola to increase climate resilience. The Ministry of Agriculture and Rural Development in Angola is collaborating with the private sector to achieve objectives like the distribution of seeds and tools, reconstruction of rural infrastructure, and others. The government has also directly aided in the establishment of several big agricultural projects and businesses. Gesterra S.A., Aldeia Nova, Quiminha Project (PIDARQ), etc. These policies have a direct or indirect impact on increasing the private sector's involvement in agriculture, which may enhance the overall agricultural sector in the country.

High Regional Trade of Coffee

Agriculture in the country comprises several segments, namely fruits, vegetables, cereals, and pulses. One of the major crops of Angolan agriculture is coffee. Before the civil war, Angola used to be one of the world’s biggest coffee producers. The Angola Ministry of Agriculture made strategic policies to make Angolan coffee competitive again. The policies have been highly favoring coffee which is evident as the exports doubled in value in 2021 as compared to the year 2017. The coffee exports in 2021 from Angola were valued at USD 2.12 million, and Major export destinations were the countries in North America and Europe.

Coffee productivity is currently around 260 kg/ha on average, owing to substantial disparities between ancient farms (e.g., 100 kg/ha) and restored and well-maintained farms (e.g., 400-500 kg/ha). Angola produces two varieties of coffee: Coffea canephora, often known as Robusta26, and Coffea Arabica, also known as Arabica. Angolan Robusta coffee is said to have a distinct flavor and to be of the highest quality among producing countries. This is most likely owing to local farming practices, which often grow coffee in shadow, as well as environmental circumstances such as high altitude (e.g., some plantations are located around 1,100 meters above sea level) and soil type.

The Angolan National Coffee Institute (INCA) was established as a responsible government body for the coffee sector’s development, aiming to attract private investors for public-private partnerships (PPP) and establish a ‘coffee fund’ for smallholder farmers. These initiatives help enhance the production of coffee and increase the demand for coffee in the region.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.