Investing in rural people in Angola - Rural poverty in Angola
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©IFAD/G. Pirozzi
Investing in rural
people in Angola
Rural poverty in Angola
Angola is one of Africa’s most resource-rich countries representing
sub-Saharan Africa’s second largest oil producer and the world’s
fourth largest producer (in value) of diamonds. The country is also
fortunate to possess a wealth of other natural resources including
minerals, water, forestry and fisheries. The population is estimated to
range between 16 and 18 million people (no population census has
been conducted since 1970) of whom some 41 per cent are thought
to live in rural areas.
In 1975, after 14 years of fighting, Angola became independent from Portugal
subsequent to which it was immediately engulfed in one of Africa’s most prolonged
civil conflicts. After almost four decades of war, much of the country’s economy
had collapsed, infrastructure destroyed, institutions weakened or no longer
functioning, society polarized, an estimated 4 million people displaced, poverty
rampant and the newly created political process fragile. Over the last 13 years
since signing the peace agreement, the government together with its national and
international partners, have made substantial progress in re-establishing the
foundation needed to address many of these problems. This has resulted in the
development and implementation of programmes aimed at restoring order and security,
revitalizing the economy, reinstating basic social services and rehabilitating basic infrastructure.
The central highlands was the region most affected by the war and is now most vulnerable to
food insecurity. The provinces of Huambo, northern Huíla and parts of Bié were at the core of
the conflict, and most of the combatants on both sides came from these areas. The region is
subject to intense population pressure, with an estimated two thirds of the country’s population
concentrated there, most of them living in extreme poverty. Environmental decline is
accelerating. Impoverished soils, poor farming practices and competition for farmland combine
to diminish productivity and aggravate food insecurity.
Angola has experienced rapid economic expansion over the period 2003 to 2008 supported
primarily by high global oil prices and increased oil production with an average growth rate in
gross domestic product (GDP) of some 17 per cent. Following sharp drops in GDP due to the
global economic crisis of 2008-2010, the country has experienced a return to growth driven
primarily by an increase in oil prices as well as a public investment programme targeting
non-petroleum sectors. Growth in GDP over the next 5 years is projected to range between
6.4 and 6.9 per cent.
Despite the increasingly strong expansion in the non-oil sectors in recent years due to public
investment programmes, oil still represents 95 per cent of all exports and accounts for
79.5 per cent of fiscal revenues.
The country’s road network is in extremely poor condition, the rail network barely functions,
electricity distribution is limited and unreliable, and water and sanitation services are poor to
non-existent, particularly in much of the country’s poorer rural areas. Institutional capacity
remains low, in particular outside of urban areas, which impedes the achievement of many of
the government’s social objectives.
Agricultural and fisheries sectors
Prior to independence, Angola was self-sufficient in all key food crops (except wheat) and was
an exporter of cash crops, in particular coffee and sugar. The war and lack of investment
severely impacted both sectors and the country has been dependent on food imports and food
aid since 1990. A mere 10 per cent of the arable land in the country is currently under
cultivation and per-acre productivity is one of the lowest in sub-Saharan Africa.
The combined contribution of crops, livestock, forestry and fisheries to GDP between 2001 and
2003 was about 8 per cent; a figure that increased to 12 per cent by 2011, primarily due to
public investment programmes. While this growth in the agricultural sector is thought to have
contributed to a reduction in hunger, it is believed to have had a lesser impact on poverty
reduction. Moreover, most of the growth was due to the expansion of cultivated arable land
rather than productivity. Furthermore, despite the fact that agriculture has been identified as a
priority area in the poverty reduction strategy, budget allocations remain low.
Some two-thirds of the population depends on agriculture for food, income and employment,
with women providing most of the labour force. It is estimated that 80 per cent of farmers are
smallholders, generally producing little or no surplus, with very low productivity. Lack of access
to agricultural inputs is a major obstacle to production.
The war led to a massive exodus from many rural areas as people flocked to towns and cities
for safety. About 4 million people (about one third of the population) were internally displaced at
the end of the war. Nearly 500,000 Angolan refugees fled to neighbouring countries. Tens of
thousands are returning to rural areas although there are few incentives to do so. The rural
economy has all but collapsed. The landmines and unexploded bombs that litter the
countryside are a danger to those who want to return and cultivate the land, and they are a
constraint on economic and social recovery. Social and physical infrastructure are badly
damaged and neglected. In particular the lack of roads and bridges, which allow farmers
access to markets, is a major impediment to trade. Farmers also lack access to agricultural
inputs and other assets necessary to begin producing again. They need seeds, adequate tools
to work the land, animals for traction and fertilizers for areas such as the central highlands,
where soil fertility has been depleted.
2Fish currently represent the main source of animal protein in Angola with an estimated annual
per capita consumption of 18.7 kilograms. However, marine fishing along the 1,650 kilometres
of coastline has declined dramatically, a trend attributed to large-scale fishing by foreign fleets
and weak capacity of the authorities to survey and intercept illegal fishing and enforce quota
limits. Marine fisheries nevertheless are thought to have a good potential for private
development with prospects for both domestic and external markets.
Poverty
From the latest figures available (2013), Angola is ranked 148th out of 186 countries on the
Human Development Index (HDI). Poverty remains prevalent throughout much of the country.
It is estimated that 68 per cent of the population is living below the poverty line and
15 per cent of households are living in extreme poverty. Poverty is more widespread in rural
areas where 94 per cent of households are categorized as poor. Other indicators reflecting
current conditions include:
• 38 per cent of the population does not have access to safe water sources
• only some 30 per cent of people have access to government health facilities
• life expectancy at birth is estimated at 47 years (2010) – among the lowest in the world
• only 54 per cent of enrolled children complete primary education.
Angola ranks 106 (out of 134 countries) in the Gender Gap Index 2009. While efforts have been
made to reach gender parity in net enrolment for primary schooling, girls continue to have less
access to secondary education. Illiteracy rates are substantially higher in women in rural areas
(73.6 per cent) than among men (34.6 per cent). Moreover, limited access to formal vocational
training and higher education opportunities strongly condition women’s reduced income levels
and strong presence in subsistence agriculture and informal trade. Women and men participate
in unequal terms in the management and control over assets and in decision-making, both at
household and community level. Over 23 per cent of households are headed by women.
Young people in rural areas are faced with the dual challenge of wanting to explore alternative
livelihood opportunities to subsistence farming or small-scale fishing, while at the same time
having little formal training to equip them to face the labour market. Schooling completion rates
decrease after primary level and progressively drop along the education pathway. Poverty is
lower among the 15-35 age group than any other group. Most households are headed by
young people, growing in size progressively with age. Young women and men aged between 20
and 24 are at greater risk of catching HIV/AIDS. However, this same group reported to have the
highest level of knowledge on the disease.
Eradicating rural poverty
in Angola
The government continues to allocate more than 30 per cent of its budget to improving social
conditions; a figure that is projected to increase over the next five years. The main goals set out
in the country’s poverty reduction strategy (2004) are to halve the country’s poverty level by
2015, and to consolidate peace and national unity through the sustained improvement of the
living standards of all Angolans.
Within this framework, the revival of the agricultural sector is a priority. Food security and rural
development are included as one of ten specific objectives within the country’s poverty
reduction strategy, to minimize the risk of hunger, meet internal food needs and revitalize the
rural economy. To achieve this goal, the government strategy is to develop the smallholder
sector through community participation and local-level planning and implementation.
3IFAD’s strategy in Angola
Programmes and projects: 4 IFAD’s first project in Angola, the Malanje Smallholder Sector Rehabilitation Project, began in
Total cost: US$78.8 million 1991 but was suspended in 1992 when fighting broke out again and it became impossible to
Approved IFAD loans: maintain a presence in the project area. IFAD began formulating two new projects after the
US$36.1 million Lusaka Peace Accord was signed in November 1994. The Northern Region Foodcrops
Directly benefiting: Development Project (PRODECA) was initiated in 1997 and the Northern Fishing
185,800 households
Communities Development Programme (PESNORTE) began in 1999. Both operations were
disrupted by a fresh outbreak of war in late 1998, and were resumed after the conflict ended in
2002, when the project and programme areas became accessible again.
The Market-oriented Smallholder Agriculture Project (MOSAP) is the only current IFAD-funded
project in Angola. It was approved in December 2007 for an IFAD loan of US$8.2 million and
cofinancing provided by the World Bank and Japan. The IFAD loan was signed in April 2008
and declared effective in November 2009. The World Bank credit was declared effective in
September 2011 and it is now the cooperating institution.
A fisheries project is currently under development. The project goal will be to contribute to
poverty reduction in artisanal inland fishing and small-scale fish-farming households in target
communities by improving food security and nutrition.
IFAD’s primary objectives in post-conflict Angola are to ensure food security and help increase
incomes, particularly for people living in the poorest areas of the central highlands. The
organization’s programmes and projects will address vulnerable groups such as women and
households headed by women, as well as young people, demobilized soldiers and displaced
persons. Development activities are directed towards:
• increasing smallholder production of basic food crops
• strengthening rural organizations and representatives of vulnerable groups
• ensuring access to services and infrastructure such as schools, health centres and wells for the
most disadvantaged groups
• promoting pro-poor policies based on in-depth knowledge of the needs of poor rural people
in specific localities.
IFAD’s approach to rebuilding the livelihoods of poor rural people in Angola is based on local-
level knowledge of their circumstances and needs. All operations adhere to the three principles
of IFAD’s regional strategy for East and Southern Africa:
• targeting carefully
• empowering poor rural women and men
• helping rural organizations influence local and national institutions.
In the post-war period of reconstruction, IFAD’s operations have made a contribution towards
rebuilding communities, improving livelihoods and ensuring stability in rural areas. Millions
of Angolans are now newly settled or resettled in rural areas. Providing basic social
infrastructure has been important in motivating people to return to these areas, as
demonstrated by the increase in population around new schools and health centres.
Evaluations of the Belgian Survival Fund investments in Angola have shown that the
construction and rehabilitation of infrastructure in rural areas can have a rapid positive impact
on the lives of poor rural people.
4Ongoing operations
Luanda
Market-oriented Smallholder
Agriculture Project (MOSAP)
Market-oriented Smallholder Agriculture Project
The project’s objective is to increase the agricultural production of smallholders in rural Total cost: US$39.4 million
areas in the provinces of Bié, Huambo and Malanje. The 25 comunas and municípios IFAD loan: US$8.2 million
selected by the project are extremely poor, and the majority of households in the area are Duration: 2009-2015
made up of formerly internally displaced persons who have taken up farming to provide Directly benefiting: 126,000 households
a livelihood for themselves. The average farm is between 1 and 2 hectares, but in some Cofinancing: Japan (US$4.0 million);
World Bank: IDA (US$20.0 million)
villages a significant number of people do not have access to even 1 hectare.
The project area is home to about 80 per cent of Angola’s food insecure population and
68 per cent of its most vulnerable people. The area has a potential for long-term
sustainable development. The project focuses on increasing agricultural productivity by
building farmers’ capacity, by supporting seed multiplication and livestock production,
and by supporting and strengthening extension services that respond to the communities’
needs. It works with farmers’ groups and traders to enhance marketing of agricultural
produce, storage and access to local markets.
Projects in design phase
Artisanal Fisheries and Aquaculture Project
The project will reduce poverty in artisanal inland fishing and small-scale fish-farming Total cost: US$10.4 million
households in target communities through improved food security and nutrition. The IFAD loan: US$9.5 million
project will be divided into three components: Duration: To be decided
• inland artisanal fisheries development Geographical area: Provinces of Bengo,
Kwanza, Malanje and Luanda.
• small-scale aquaculture development Directly benefiting: 15,000 smallholders
• project management. Cofinancing: To be decided
In addition to these components, project design will incorporate a number of activities
that will address climate change issues as they affect fisheries and aquaculture in the
project’s two technical components.
5Fast facts about the East and Southern Africa region
The East and Southern Africa (ESA) region probably has the highest concentration of poverty in
the world. Three out of four people in the region, about 260 million people, live in rural areas,
and more than half of them live in extreme poverty. About 85 per cent of these extremely poor
people depend on agriculture, particularly smallholder farming, for their livelihood. Yet
agricultural development is falling behind. The region has suffered a general decline in
development assistance and a dramatic decline in investment in agriculture.
With a wealth of human and natural resources, rural areas in the region have enormous
potential for growth that would benefit not only rural poor people but also national economies.
The potential for improvements in smallholder agriculture offers the most immediate practical
opportunity to reduce rural poverty and stimulate broad-based growth.
In 2012 GDP increased by an average 4.9 per cent in East Africa and 4.3 per cent in Southern
Africa. Some of the strongest performances were set by Angola, forerunner with a 7.9 per cent
increase, Mozambique, Rwanda and Zambia. The GDP in the region is expected to increase
during the coming two years by 5.6 per cent and 4.6 per cent in East Africa and Southern
Africa respectively. In the same period, approximately 70 per cent of foreign investments in the
region target the mining sector, with major investments directed at Angola, Mozambique and
South Africa. In absolute terms, government expenditure on agriculture has increased in ESA
over the past 20 years, but expenditures on agriculture as a portion of all government
expenditures has decreased. In ESA, agriculture’s contribution to GDP is far lower than
the percentage of people engaged in agriculture, reflecting low agricultural productivity.
The Food and Agriculture Organization of the United Nations (FAO) estimates that in lower
and medium-income countries, farmers invest four times more in agriculture than government,
donor and private foreign investment combined.
In the 21 countries in ESA, on average 60 per cent of the active population is engaged in the
agriculture sector, but the variation is wide, reflecting the presence or absence of diversified
economic opportunity. In the region 65 per cent of farm work is done by ‘hand’, 25 per cent by
draft animal power and 10 per cent by tractors, pumps or other motorized instruments. The
overwhelming dependence on human muscle for farming in sub-Saharan Africa is perhaps the
greatest brake on rural economic and social development. It is highly inefficient, taking on
average 60 person days/hectare for land preparation, seeding, weeding and harvesting and
greatly limiting the amount of land that a farming family can efficiently cultivate.
African exports have tripled in value in the past fourteen years, reaching a value of US$582
billion, as a result of high commodity prices and the rise of demand for oil and minerals from
mainly China. However, trade between African countries lags behind, representing only
12 per cent of total trade. Established in 2003 as part of NEPAD, The Comprehensive Africa
Agriculture Development Programme (CAADP) has the main objective of improving and
promoting agriculture across Africa. As a medium-term objective set to 2015, African
governments expect to foster agricultural markets within and between countries, increase the
participation of farmers in the market economy, increase agricultural production and sustainable
management of natural resources in the continent. In this regard, the main regional economic
blocks (SADC, COMESA) are playing an important role as stakeholders. In ESA, 11 countries
have signed the CAADP compact, an instrument that identifies the key areas for investment and
shows the governments’ commitment to implementation of the CAADP pillars. The remaining
countries have launched CAADP implementation and are working towards signing the compact.
IFAD’s strategy for rural poverty reduction in East and Southern Africa
Since starting operations in 1978, IFAD has financed 177 investment programmes and projects
in the region, for a total commitment of US$2.9 billion. IFAD is one of the principal sources of
development assistance for rural poverty reduction in the region.
IFAD’s regional programme takes the growth potential of the smallholder economy as its
starting point. It focuses squarely on new opportunities and challenges associated with the
region’s incomplete economic transition, the result of structural adjustment that modified the
landscape of economic policy and institutions. It also makes support to women a priority.
6Women are the least empowered people in rural communities, but have the potential to make
a key contribution to poverty reduction.
Working with governments, donors, poor rural people and community-based and non-
governmental organizations, IFAD explores opportunities created by governments through
political opening, decentralization and economic liberalization. It supports a wide range of
activities through which smallholder farmers develop new relations with the private sector and
public services and a new approach to resource management. The strategy’s objective is to
ensure that activities can be replicated and scaled-up to reduce poverty.
Nine countries in ESA, including Angola, are middle-income countries (MICs). Projects cannot
always offer the design and financing options MICs desire according to the changing global
environment for development assistance. MICs, which have access to alternative sources of
financing, consider that the non-financial costs and rigidities associated with project lending
outweigh the benefits associated with IFAD involvement. On the other hand, MICs’ agricultural
sectors represent a far lower portion of GDP than in other countries. Government agricultural
strategies focus primarily on increasing production through support to large agro-enterprises, and
as such there can be a certain disconnect between government sectorial objectives and IFAD’s
focus on smallholder agriculture and poverty reduction. Supporting effective government policies
to empower the most marginalized people and to improve their access to basic productive
assets is an important niche for IFAD in MICs.
Designing and implementing programmes and projects that reflect its mandate to enable rural
poor people to overcome poverty, IFAD:
• ensures careful targeting, focusing on poor rural people in areas of medium to high potential,
without excluding more marginal areas
• invests in empowerment of poor rural women and men to strengthen their own productivity
and assets, and to enable them to assert their influence on government and the private sector
• supports development of rural poverty reduction policies and establishment of institutions that
help give poor people a voice in their future.
IFAD’s operations in ESA have a particular focus on:
• promoting efficient and equitable market linkages
• developing rural finance systems
• improving access to and management of land and water
• creating a better knowledge, information and technology system.
Building up resilience to crises such as the HIV/AIDS epidemic and civil strife is an essential
element of IFAD’s strategy. The region is the epicentre of the epidemic, and adult prevalence
rates are among the highest in the world. Most of those who suffer the impact of the epidemic
are extremely poor people living in rural areas. IFAD’s response is to extend knowledge
empowerment at the community level into the realm of HIV/AIDS to support prevention, and to
work towards establishing livelihood options for the poor, outside high-risk activities.
ESA new business model for decentralization
The Division is introducing a new approach to project management, moving from country
manager to country management team. In this new model, a group of country programmes are
managed jointly by a country management unit (CMU), which fosters cross country linkages and
support, where countries are gathered by a clear set of criteria, most importantly, accessibility to
add value to sub-regional trade and opening up beyond the borders. This model also allows to
tap into the mix of skills and competencies among country office staff and sharing local
experiences.
A critical role of the new business model would be to stimulate proactivity and empowerment at
the regional and country level, allowing for a continual assessment of risks and problems for
successful implementation and sustainability, as well as monitoring changes in implementation
requiring the need to adjust original project design or results frameworks.
7Completed operations Building a poverty-
free world
Northern Fishing Communities The International Fund for Agricultural
Development Programme Development (IFAD) works with poor
Total cost: US$9.3 million rural people to enable them to grow
IFAD loan: US$7.3 million and sell more food, increase their
Duration: 1998-2008 incomes and determine the direction of
Directly benefiting: 4,000 households their own lives. Since 1978, IFAD has
invested about US$15.6 billion in
Northern Region Foodcrops grants and low-interest loans to
developing countries through projects
Development Project
reaching approximately 420 million
Total cost: US$18.8 million
people and helping to create vibrant
IFAD loan: US$10.0 million
rural communities. IFAD is an
SPA loan: US$3.4 million
international financial institution
Duration: 1997-2007
and a specialized UN agency based in
Directly benefiting: 44,400 households
Rome – the United Nations’ food and
agriculture hub. It is a unique
Malanje Smallholder Sector partnership of 173 members from
Rehabilitation Project developing countries, the Organization
Total cost: US$12.0 million of the Petroleum Exporting Countries
SPA loan: US$7.2 million (OPEC) and the Organisation for
Duration: 1991-1996 Economic Co-operation and
Directly benefiting: 15,000 households Development (OECD).
Contact
Périn Saint Ange
Country Programme Manager a.i., Angola
IFAD
Via Paolo di Dono, 44
00142 Rome, Italy
Tel: +39 06 54592448
Fax: +39 06 54593448
E-mail: p.saintange@ifad.org
For further information on rural poverty in
Angola, visit the Rural Poverty Portal:
http://www.ruralpovertyportal.org
International Fund for Agricultural Development
Via Paolo di Dono, 44 - 00142 Rome, Italy
Tel: +39 06 54591 - Fax: +39 06 5043463
E-mail: ifad@ifad.org
www.ifad.org
www.ruralpovertyportal.org
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