Angola

Despite the significant investments made in social infrastructure in recent years, the rates of access to essential services remain low. The Millennium Development Goals for the development of the water and sanitation sector have not been achieved. In 2015, 49% of the population had access to an improved water source (75% in urban areas) and 52% to an improved sanitation system (89% in urban areas – source WHO/UNICEF). The average access rate in cities masks significant disparities between neighborhoods, while it is lower than 10% in certain provincial cities. Furthermore, only 32% of city dwellers have a water connection at home and many buy water from water tankers at an exorbitant price.

The Government has set out to fight against inequalities and improve service quality by launching a restructuring of the water and sanitation management system, with the creation of provincial water companies and a regulatory institute for the sector. This program is supported by AFD, the World Bank, African Development Bank and EIB. AFD is supporting 6 of the 18 newly created public companies, as well as the rehabilitation and extension of the urban and periurban water networks in these provinces, which will eventually provide 900,000 residents in the most disadvantaged neighborhoods with access to water.

The marked disparities within the country itself are reflected in access to energy. While energy accounts for over 90% of the country’s exports through crude oil, only a third of the population has access to electricity. The Government has set the objective of supplying electricity to 60% of the population by 2025, representing a total production of 9.9 GW (against 2.1 GW in 2013). Rural electrification is also a priority, with the aim of promoting economic development in these areas and fighting against rural exodus. The ambitious objective: electrify all the capitals of municipalities by 2025.

Angola has extensive natural resources and strong potential for renewable generation, thanks to solar, wind and biomass energy. Hydropower development is also a major focus, with a national potential estimated at 18 GW. The share of renewable energies should consequently reach ¾ of the energy mix by 2025.

The Government wants to connect, extend and secure the domestic power grids, then interconnect its grid with the region. The aim is to improve the regulation of production and demand, which will open up export opportunities. It has also restructured the sector to improve the financial management of the new public companies and is working to reduce technical and non-technical losses. Finally, it aims to improve energy efficiency by rehabilitating existing infrastructure, much of which is dilapidated and has been damaged by the war and time. 

AFD is supporting these initiatives by financing the rehabilitation of dams and the electrification of rural areas.

Angola was considered as one of the continent’s bread baskets in the 1970s and 1980s and has strong agricultural potential. However, the armed conflict riddled the land with landmines, damaged infrastructure and a large part of technical expertise was lost with the rural exodus. Today, the country is highly dependent on imports to meet its food needs. Only 8-14% of its 58 million hectares of arable land is farmed, mainly by small family farms. Despite limited access to inputs and mechanization and low productivity, these farms account for an average of 90% of national agricultural production. There is still widespread food insecurity, while the agriculture sector employs almost half of the country’s working population.

The country’s economic model has largely focused on oil, which has plunged the country into an economic crisis related to the fall in the price per barrel. For the Government, the priority is clear: it is necessary to diversify the economy. This diversification requires developing agriculture.

To meet these objectives, AFD is supporting small producers, cooperatives and SMEs in the agro-industrial sector in order to develop their commercial activity and facilitate their access to the market. We also encourage the banking sector to extend its range of financing to the sector and support agricultural research and development programs.