Angola Creates 36,000 New Businesses and Boosts Non-Petroleum Exports

Angola’s Institutional Capacity Building Project for Private Sector Development, which spanned from 2014 to 2023, exceeded expectations, according to the recently published Project Completion Report in January 2024. The project, financed by a USD 24 million loan from the AfDB Group, not only achieved its objectives but also contributed to significant positive economic outcomes in Angola.

One of the primary targets of the project was to bolster the growth of Angola’s non-oil exports, and it far outperformed expectations. In December 2022, the growth rate of non-oil exports soared to 5.9%, surpassing the 2018 target of 2.8%. Even in June 2023, it maintained a robust growth rate of 4.9%, aligning closely with the revised 2020 target of 5%.

This achievement was not limited to increased exports alone. The project played a pivotal role in fostering entrepreneurship and promoting the diversification of the Angolan economy. The number of business start-ups in Angola skyrocketed from a mere 2,700 in 2012 to an impressive 38,715 in 2022. Simultaneously, the project facilitated a substantial increase in the number of cooperatives with access to essential services, rising from 240 to 12,870 during the same period.

Furthermore, the project had a positive impact on agriculture, with 23,776 farmers, including 3,148 women, engaging in coffee production. This progress was made despite the challenging economic circumstances, with the Angolan economy experiencing a recession and the added strain of the Covid-19 pandemic, which temporarily reduced the number of start-ups in 2020.

The project’s support extended to the National Institute in support of Micro, Small, and Medium-Sized Enterprises (INAPEM), contributing to the formalisation transition under the Informal Economy Reconversion Programme (PREI) in Angola. Additionally, it reinforced action under the Support for Production, Export Diversification, and Import Substitution (PRODESI) program. Key initiatives included establishing the PRODESI management office, implementing the Agro-PRODESI program, which accelerated investments in inclusive and sustainable agro-industry sectors, and conducting value chain studies in vital industries such as agriculture, forestry and livestock, fisheries and aquaculture, mining and construction, tourism and leisure, textile, clothing, leather, and footwear.

As part of the PRODESI program, an impressive total of 3,034 agro-entrepreneurs and agricultural cooperative managers from all 18 provinces of Angola received training in agribusiness management and the preparation of agribusiness projects.

The success of the Institutional Capacity Building Project for Private Sector Development not only demonstrates the effectiveness of targeted interventions but also underscores the resilience and potential for growth within Angola’s private sector. This achievement aligns with the broader goals of fostering economic development and diversification, ultimately contributing to the prosperity of the nation.

Read the full report here: Angola – Institutional Capacity Building for Private Sector Development Project – Project Completion Report

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Source: African Development Bank