Introduction & framework
The PLANAGRÃO – National Plan to Promote Grain Production (Plano Nacional de Fomento para a Produção de Grão), is a nationwide plan aimed at promoting the production of grains on a commercial scale, in order to deal with the irregular supply of grains and fertilizers in the international market.
This scenario is caused by the geopolitical situation, whose impact, according to experts, will be food shortages and generalized price increases. PLANAGRÃO aims to promote a balanced development of the national territory, in terms of the productive sector, with more competitiveness, innovation and environmental sustainability.
PLANAGRÃO promotes knowledge transfer and innovation in the agricultural sector in rural areas
1. To improve the viability of commercial farms and competitiveness in grain production in regions with the best soil and climatic conditions for this type of production and to promote the use of innovative and sustainable technology for agriculture.
2. To promote the organization of the food chain, including the processing and sale of animal and plant-based products.
3. To restore, preserve and enhance agriculture-related ecosystems.
4. To promote natural resource efficiency and encourage the transition to a low-carbon economy, capable of adapting to climate change in the agricultural sector.
5. Promoting social inclusion, poverty reduction and economic development in rural areas.
All this will result in coordination between the public sector and the private sector, thereby creating a framework in which the State provides infrastructure, and the private sector invests in production.
Objectives
In the short and mid-term, that is, until 2027, PLANAGRÃO aims to reduce dependence on imports of wheat, rice, soybeans and corn, and to accelerate local production and supply, with greater predominance in the eastern region of the country, more specifically, in the provinces of Lunda Norte, Lunda Sul, Moxico and Cuando Cubango.
The general objective of PLANAGRÃO is to guarantee food security, generate income and promote competitiveness with the intention of, in the mid-term, turning Angola into a major grain producer in the southern and central regions of Africa.
SWOT analysis of grain production
The current challenge for the national economy is to invest in large-scale grain production with a view to contributing to the process of diversifying the economy.
It is therefore important to analyze the strengths and weaknesses, opportunities and threats of the grain production strategy to be adopted, through the table below.
Strength
- Existence of a young workforce
- Existence of agricultural research and training institutions at a national level
- Existence of water resource
- Existence of financial instruments at the level of commercial banks
- Partial exemption from payment of customs fees for agricultural raw materials
- Existence of favorable soil and climate conditions
Weakness
- Low productivity of grain crops
- Little mechanization in the production, processing and transformation process
- High level of soil acidity
- Low quality or uncertified quality seeds
- Poor pest and disease control
- Poor use of water resources
- Lack of agricultural insurance and specialized credit
- Importation of most agricultural inputs and production factors
- Insufficient installed capacity for the process of land demarcation and granting of deeds
- Inexistence of a denomination code
- Deficit of investment in the agricultural sector
- Imperfect agricultural commodity markets and value chains affect both farm profitability and food security
- The skills gap in the agricultural sector limits productivity and profitability
- The agricultural sector currently fails to maximize the contribution and benefits to women and youths
- Inexistence of reference prices for grains
Opportunity
- nsertion into the Southern African Development Community (SADC) and the Economic Community of Central African States (ECCAS) with a consumer market of more than 200 million inhabitants and an eminent free trade zone
- Privileged relations with Portuguese-speaking African Countries (PALOP) and the Community of Portuguese-Speaking Countries (CPLP) with more than 250 million inhabitants
- Economic growth in the non-oil sector is creating domestic and regional markets for an increasing range of Angolan crops
- A relatively young population will be encouraged into entrepreneurship
- Agricultural innovation can help improve food security, increase farmers' incomes, and protect natural resources
- Generalized rise in grain prices worldwide
- Generalized rise in grain prices worldwide
- Availability of arable land
- Financial availability for investment in the non-oil sector due to the increase in oil revenues
Threat
- Importers dominate distribution chains
- Delays and difficulties in accessing agricultural financing
- Infrastructure network to support production is and distribution is precarious and/or under construction
- Rising prices and scarcity of agricultural inputs in international markets
- Demanding regulatory and certification framework for exports to Europe and the USA
- Climate change
Strengths
- A young workforce
- Existence of agricultural research and training institutions at a national level
- Existence of water resources
- Existence of financial instruments at the level of commercial banks
- Partial exemption from payment of customs fees for agricultural raw materials
- Favorable soil and climate conditions
Opportunities
- Insertion into the Southern African Development Community (SADC) and the Economic Community of Central African States (ECCAS) with a consumer market of more than 200 million inhabitants and an eminent free trade zone
- Privileged relations with Portuguese-speaking African Countries (PALOP) and the Community of Portuguese-Speaking Countries (CPLP), with more than 250 million inhabitants
- Economic growth in the non-oil sector is creating domestic and regional markets for an increasing range of Angolan crops
- A relatively young population will be encouraged into entrepreneurship
- Agricultural innovation can help improve food security, increase farmers' incomes, and protect natural resources
- Generalized rise in grain prices worldwide
- Availability of arable land
- Financial availability for investment in the non-oil sector due to the increase in oil revenues
Weaknesses
- Low productivity of grain crops
- Little mechanization in the production, processing and transformation processes
- High level of soil acidity
- Low quality or uncertified quality seeds
- Poor pest and disease control
- Poor use of water resources
- Lack of agricultural insurances and specialized credit
- Importation of most agricultural inputs and production factors
- Insufficient installed capacity for the process of land demarcation and granting of deeds
- Inexistence of a denomination code
- Deficit of investment in the agricultural sector
- Imperfect agricultural commodity markets and value chains affect both farm profitability and food security
- The skills gap in the agricultural sector limits productivity and profitability
- The agricultural sector currently fails to maximize the contribution and benefits to women and youths
- Inexistence of reference prices for grains
Threats
- Importers dominate distribution chains
- Delays and difficulties in accessing agricultural financing
- Infrastructure network to support production and distribution is precarious and/or under construction
- Rising prices and scarcity of agricultural inputs in international markets
- Demanding regulatory and certification framework for exports to Europe and the US
- Climate change
Governance and independent control system
The rapid transformation in agriculture for economic growth and farm-level food security will require strategic investments in production, value chains and supporting infrastructure. PLANAGRÃO defines the following guiding principles for public investment in this sector to attract private investment:
- The public sector acts as a market enabler to leverage private sector investment and harness its full potential.
- Ensuring the provision of targeted and quality public assets that benefit society, but would be insufficient if provided only by the private sector (e.g. infrastructure, research, education, social security, emergency response, etc.).
- Making sure to create an enabling environment, through predictable and stable agricultural policies and regulatory and legislative frameworks, with rule-based market interventions.
- Addressing market failures through appropriate instruments and incentives, better coordination and information management, and skill-building.
The Government must ensure
- Guiding participations, recognizing the needs and ambitions of different farmers, with a flexible implementation process in order to maximize impact.
- Subsidiarity, allowing local governments to lead local-level planning and front-line service delivery, complementing and supporting Provincial Development Plans.
- Allotment of land and conditions for access to the lots, through the construction of access roads.
Investment will be private sector driven: the Goverment recognizes the pivotal role that the private sector will play in the move from subsistence agriculture to commercial agriculture. The change will be driven by investments by private actors, from small farmers and cooperatives to commercial farms and suppliers of produce, inputs and support services, traders/exporters, agriprocessors and agriproducers.
PLANAGRÃO is supervised by a multisectoral commission, coordinated by the Minister of State for Economic Coordination, and made up of the Ministers responsible for the sectors of Economy, Finance, Territorial Administration, Agriculture, Industry, Commerce, Energy, Water, Education, Transport, Higher Education, Public Works and Spatial Planning.
The aforementioned multisectoral commission has the support of a technical monitoring unit, coordinated by the Ministry of Industry and Trade, and made up of representatives of the member Ministries for periodic monitoring and any necessary revision proposals.