THINKING BIG ON DEVELOPING ANGOLA'S AGRICULTURAL

UNCLAS LUANDA 000567 E.O. 12958: N/A TAGS: AO EAGR EAID ECON SUBJECT: THINKING BIG ON DEVELOPING ANGOLA'S AGRICULTURAL POTENTIAL ¶1. During an August 10 meeting with visiting US Congressman Donald Payne, Agriculture Minister Alfonso Pedro Canga explained Angolan plans to increase cereals production from the current 750,000 metric tons per year to 2 million MT by ¶2013. The increased production would enable Angola to meet domestic demand (currently about 1 million MT per year) and export the surplus. To achieve this goal, the GRA is implementing its strategic plan to 1) renovate the agricultural infrastructure, 2) increase acreage of irrigated land, 3) expand agricultural research, especially for small and medium producers, 4) train farmers, and 5) provide incentives to small-holder farmers, such as credit and inputs. To this end, the GRA has recently approved a $350 millon line of credit for small and medium producers. In addition, the GRA is supporting medium and large producers through development of agricultural infrastructure and by encouraging private sector investment in the sector. Noting that women play a disproportional role in food production, the Minister said the strategy also supports rural women and youth. ¶2. The Minister stressed that the US could play an important role in helping Angola achieve its ambitious goals of becoming a net food exporter. Specifically, he requested US help in enlisting US educational institutions to help Angola build an agricultural research capacity. He also requested US assistance in training (both in Angola and in the US) Angolan staff in agricultural production and marketing. The Minister invited US investors to come to Angola and build partnerships to help Angola greatly expand production of sugar, soybean, coffee, beans, and other commodities to meet domestic needs and export. He said the government would provide incentives to foreign investors in the agricultural sector, such as tax advantages, expedited importation of agricultural equipment, investment protection, and guaranteed repatriation of profits. He said recently enacted land reform legislation guarantees land concessions to investors. He added that agricultural industries both for inputs (fertilizers, seeds, etc.) and for processing outputs (coffee, juices, canned fruit, etc.) were other areas of investment potential. ¶3. COMMENT: The Minister's message to the Congressman was much like the one given to Secretary Clinton during her August 9 - 10 visit: In the wake of the global economic and financial crisis, the Angolans are serious about diversifying their economy by developing their enormous agricultural potential, thus making the economy more insulated from oil price shocks and creating needed jobs so more Angolans can share in the nation's growth. Angola has great potential not only to satisfy its own food needs but to contribute importantly to global food security. To this end, Post is preparing a proposal on how Angola might benefit from participation in the Global Agriculture and Food Security Response. MOZENA