The World Bank has confirmed that it will offer the Angolan government $1 billion in finance to develop its agriculture sector and related infrastructure, a move that could involve co-investment with the private sector.
Angola, sub-Saharan Africa’s second-largest oil producer, wants to diversify its economy as it recovers from the impact of civil war 12 years ago. Oil production currently makes up 40 percent of Angola’s GDP and 95 percent of its exports.
Gregor Binkert, Angola’s country director at the World Bank, is yet to confirm how the funding will be deployed, but said that “the move could also be used to leverage more financing from the private sector, including pension funds and domestic and overseas banks that want to take part in Angola’s infrastructure projects”.
There are big opportunities for growth in the Angolan agri sector; over 50 percent of the population is employed in agricultural work, yet agricultural production accounts for just over 10 percent of the economy. This provides a big chance for investors to make improvements and achieve returns, according to a World Bank report about the country.
“There is much need and the government has quite a coherent programme, so the World Bank will support it financially through the International Bank for Reconstruction and Development,” acknowledged Binkert in the announcement.