Luanda — Minister of Economy and Planning (MEP) Mário Caetano João has stressed the government's focus on agri-business for the process of diversification of the Angolan economy, which moved from 57 percent participation in the Gross Domestic Product (GDP) in 2011 to around 75 percent in 2022.
Speaking to Voice of America (VOA), the minister noted that the contribution of agri-business enabled the non-oil sector to be accounted for 25 percent of GDP currently.
Caetano João said that progress had been made, although the country was still dependent on revenues: "66 percent of the country is still dependent on the oil sector, and 95 percent on exports.
He added that work was underway toward achieving the other two indexes, specifically the human assets index and the economic vulnerability index.
"Angola is still a country dependent on tax revenues from the extractive sector (oil, gas and diamonds), because whenever there is some kind of turbulence in international prices the treasury feels it and consequently the OGE and the social sector," he said.
The minister noted that in the economic sector there was a business sector that was becoming stronger, with the commercial banks believing, by 2022, more in that sector and providing over US$2 billion for the most diverse activities, with a focus on agribusiness.
He also recognised that Angola needed to change its paradigm more quickly, noting that before independence it was built to be an export market, but, unfortunately, with the civil war it started to become dependent on imports to the point where 95% of goods and services consumed were imported.
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Minister Caetano assured that they are changing the paradigm of the country, to stop being a logistical operation of import and distribution, "where you do not need to have the value chains and where the segments are not used, because the products that come from abroad were simply distributed.
He said that the Development Bank of Angola (BDA) had been the bank that had provided the most credit to the Angolan economy.
"The growth rate until 2020 in agriculture was approximately 1.1 and today we have 5%, consecutively," he said.
In his interview, the minister said that Angola is working with the United Nations to determine the situation of the three criteria for graduating Angola to a Middle Income Country.
On the other hand, he defended the need for mature business community, business environment that allow the banking sector funding to ensure access to the market so that people could sell their goods.
"Then, we need the banks to be better trained so that they can better identify the risks of the most diverse agricultural projects," he said.
The Minister also highlighted the implementation of the National Plan to Boost Grain Production (PLANAGRÃO), the National Plan to Boost and Develop Livestock (PLANAPECUARIA) and the National Plan to Boost Fishing (Planapescas 2023-2027).
