The Angolan government's efforts to boost the agricultural sector have yielded positive results, with the sector's contribution to the country's Gross Domestic Product (GDP) growing to around 23%. This represents a significant increase from 10 years ago, according to Minister of State for Economic Coordination, José de Lima Massano. He made these remarks during his closing speech at the International Conference on Sustainable Disinflation and Monetary Policy Credibility.
Minister Massano attributed the growth in the agricultural sector to the government's initiatives aimed at promoting investment in the sector. He noted that the sector's growth has helped mitigate the country's external vulnerabilities. The minister also highlighted that the food segment represents 58% of the manufacturing industry, and the industrial production index grew by 66% compared to the same period last year.
The growth in the agricultural sector has also had a positive impact on inflation. According to Minister Massano, about 56% of the Consumer Price Index in Angola is influenced by the class of food and non-alcoholic beverages. He believes that the ongoing structural transformation in the economy will help consolidate disinflation. To achieve this, the minister advocated for continuous public incentives and stimuli to attract more investment in agriculture, manufacturing, logistics infrastructure, and the valorization of national production.
Angola has experienced periods of high inflation, including hyperinflation, over the past 50 years. However, Minister Massano noted that legislative reforms have helped introduce a new paradigm to the sector. The reforms have been complemented by adjustments to monetary policy instruments aimed at mitigating inflationary pressures.
The minister emphasized the importance of credibility in monetary policy, stating that it is essential for the progress achieved to be sustainable and protected from resurgent inflationary pressures. He defined credible monetary policy as one with clear objectives, coherent decisions, transparent communication, and results that confirm a commitment to price stability over time.
The International Conference on Sustainable Disinflation and Monetary Policy Credibility was held to mark the 50th anniversary of the Banco Nacional de Angola (BNA). Minister Massano, who served as Governor of the BNA from 2010 to 2015 and 2017 to 2023, noted that the conference provided an opportunity for reflection and sharing of experiences on fundamental issues related to economic policy, disinflation, and monetary policy credibility.
Despite the positive developments in the agricultural sector, Angola still faces significant development challenges. The country's economy has not yet reached the levels of 1974, when it was a major producer of various commodities, including sugar, coffee, and cotton. Today, about 68% of the population lives in poverty, and the country struggles with high infant mortality rates, limited access to clean water and sanitation, and a shortage of quality healthcare services.
Key points
- The agricultural sector now accounts for 23% of Angola's GDP, nearly double its size in 10 years.
- The sector's growth has helped mitigate the country's external vulnerabilities and contributed to a decline in inflation.
- Angola still faces significant development challenges, including high poverty rates and limited access to basic services.
