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.