Hasan Group and Forever Green to invest $650m in Angola
President Uhuru Kenyatta with Angolan President Jose Eduardo dos Santos at Talaton Villa hotel, Luanda at a past event. Two Chinese firms, Hasan Group and Forever Green, plant to invest $650 million in Angolan agriculture as the country diversifies from its dependence on oil. PHOTO | PSCU
What you need to know:
- In 2013, the India government opened a $67m credit line to Angola, aimed at boosting agriculture and industrialisation.
- Agriculture’s contribution to the GDP— including forestry and fisheries — stands at about 8 per cent in Angola.
- The non-oil sector in Angola is mainly dominated by agriculture, banking, communications, fisheries, state-owned retail stores and diamond production.
- Angola has one of the fastest growing economies in the world.
LUANDA, Tuesday
The Angolan agriculture sector is set to benefits from $650m Chinese investment, officials said.
The state-run agency Jornal de Angola reported that the money would be invested in farming and the building of food processing firms.
Chinese multinationals Hasan Group (HS) and Forever Green will be in charge of the implementation, according to jornal de Angola.
China cooperates with Angola in several fields including energy, finance, construction, agriculture, justice and personnel training.
AGRICULTURAL INVESTMENTS
“Our firm will invest $500m in the agriculture sector and in food processing,” jornal de Angola quoted HS Deputy Manager Shao Quiang as saying over the weekend. “The money will be used to buy equipment and build personnel training centres.”
HS has been in Angola for 10 years now, working in the construction field and wants to expand its investment in the oil sector.
Forever Green, jornal de Angola said, has set aside $150m for investment in agriculture and food processing in Angola.
“We want to produce cassava, tomato, maize and wheat,” Forever Green manager Wam Xan was quoted as saying.
In 2013, the India government opened a $67m credit line to Angola, aimed at boosting agriculture and industrialisation.
The deal was inked between the Indian Exim Bank and the Luanda government.
LOW OIL PRICES EFFECT
The Angolan economy has been severely affected by the sharp decline in oil prices and the government sees diversification as the way out.
Oil production continues to account for approximately 50 per cent of Angola’s GDP, 80 per cent of government revenue and 95 per cent of its exports.
Agriculture’s contribution to the GDP— including forestry and fisheries — stands at about 8 per cent in Angola.
The non-oil sector in Angola is mainly dominated by agriculture, banking, communications, fisheries, state-owned retail stores and diamond production.
Thanks to the demining, the agriculture, construction, transportation and communication, oil, mining and tourism sectors were making good progress.
FASTEST GROWING ECONOMIES
Angola has one of the fastest growing economies in the world.
According to the IMF, the outlook was for a recovery starting in 2017, but there were risks, including a further decline in oil prices.
The country is Africa’s second-largest oil producer.
Prior to independence in 1975, Angola was one of the largest cotton producers globally.
The southern African state was also the world’s fourth largest coffee producer in the pre-independence era.
The decimation of the Angolan landscape during the 27 year-long civil war destroyed the cotton and other agricultural industries.
Recently, the Angolan Agriculture State Secretary, Mr José Amaro Taty, said the country had no option but to focus its attention on agriculture.
“Human development in Angola depends on agricultural development. Agricultural investment is a priority for the Angolan government,” he said.
