Angola Expects A Coffee Production Boom
Gilberto Lutucutu, Angola's State Secretary for Coffee, is predicting that Angola will export 5,000 tons of robusta coffee this year, a level that would more than double the 1995 output. The coffee industry has been severely hurt by war, but with an improvement in the security situation, coffee production is on the rise. Currently coffee is being cultivated in six provinces: Kwanza Norte, Kwanza Sul, Bengo, Uige, Benguela and Cabinda. Mr. Lutucutu sees the 1996 gains as just the beginning. With the peace process consolidated and with renewed access to some 600,000 acres of land that were previously inaccessable, Angola is hoping to export 120,000 tons of coffee by 1998/99.
In addition to increasing the amount of land dedicated to coffee cultivation, the Government hopes to increase per acre yields. The Government recently submitted a plan to the International Coffee Organization that would overhaul the sector over the next two years. The Government has also put in place technical support teams to assist coffee producers.
Foreign investors are also helping to revitalize the coffee industry. According to Mr. Lutucutu, private investors from Germany, the U.S., Italy, Portugal and South Africa have all expressed an interest in re-developing the sector.
Prior to independence, Angola was the fourth largest coffee producer in the world
Coffee: Private Sector Analysis
In the past Angola has enjoyed a competitive advantage in coffee production and it represents one activity in which Angola has the potential to become a major player. Two significant factors that can assist Angola here is firstly, coffee is a small holder crop that can create a rural middle-class and rural stability, thus easing over-crowding in the urban areas. Secondly, the institutional memory for growing coffee still exists. If indeed Angola wants to compete in the production of coffee, it must carve out a niche by producing special varieties of coffee such as organic, mild or low caffeine coffee because the trend in demand for coffee is in the specialty category. One advantage here is that due to the war, farming lands in Angola have been left fallow and thus ecologically sound (this was the case with El Salvador and Nicaragua) and they could therefore join the bandwagon of green products grown on a truly sound ecological environment, that are enjoying tremendous success with market entry particularly in Europe.
This activity could also serve as a good entry point for co-operatives. The Government would, however, have to ensure that there is institutional support for the production of coffee, providing seeds and inputs, and establishing transportation hubs near government or private buying posts. Buying agents will also have to work closely with co-operatives. In addition, financial support through small credit schemes, should be made available to small growers. Since coffee prices are relatively high at the moment, Angola is well poised to make a strategic move in this direction. One word of caution though is that coffee production requires three years to reach full capacity and Angola's entry into this market should not be based solely on the currently high prices.
Note: This sector analysis is excerpted from a private sector strategy prepared in collaboration with the European Union and the United Nations Development Program for Angola's donors' conference held in Brussels, Belgium on September 25-26, 1995.
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Arabian Coffee - ( Angola) also found in Ethiopia |
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Angola's rainforests, located in the north of the country, are most threatened by subsistence agriculture which provides food for almost 90% of the population. Population pressures due to an exceedingly high birth rate are leading to overuse of pasture lands and causing Angolans to look increasingly toward rainforest lands for fuelwood and potential farmland. The deforestation and subsequent soil erosion results in desertification and several regions are now prone to extensive flooding. Run off from flooding has resulted in heavy siltation of rivers and dams, not to mention heavy soil loss.
In addition, over 20 years of civil war has let much of the country devastated. The government is bankrupt from building its army and hiring expensive mercenary soldiers from South Africa to put down rebellions from minority groups who want more from the government for exploiting their lands for oil and other resources. One such problem area is resource-rich Cambinda, which is separated from Angola by a sliver of Zaire territory. The people of Cambinda live deep in poverty while the government extracts riches from their land. To fund the army, the government has resorted to selling timber concessions to international corporations, increasing oil exploration and expanding mineral extraction.
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