Agriculture stimulates Angolan economy

Increased agricultural
production is helping
Angola to continue growing
despite a decline in oil
output, according to the
International Monetary
Fund (IMF).
Exporters may however
find it more difficult to
break into the Angolan
market.
A statement issued by
the executive board of the
IMF after an Article IV
review says the directors
are concerned about
the “increasing use of
trade protection, and
recommended a periodic
review of the recently
introduced import tariff
schedule with a view to
lowering tariffs within a
specific timeframe”.
Angola is becoming
increasing attractive to
exporters.
Economic growth of
around 6.8% in 2013 is
expected to drop to 3.9%
in 2014.
“Ongoing investments in
agriculture are expected to
pay off with an increase in
agriculture production by
about 11.5% in 2014,” says
the IMF.
Other sectors such as
manufacturing, electricity
and services, are also
expected to contribute to
economic growth, it says.
The medium-term
economic growth prospects
remain favourable. The
oil sector is expected to
recover and grow by 2.25%
on average over the next
five years, as the decline
in production in some
oil fields is more than
compensated for by the
commissioning of seven
new fields.
Large investments in the
non-oil sector are expected
to generate much needed
diversification and job
creation, mainly in the
agricultural sector, but also
in electricity, manufacturing,
and services.