ANGOLA – United Arab Emirates (UAE) based investors, Dubai Investments and E20 Investment, have signed a Memorandum of Understanding (MoU) to develop 3,750 hectares of agricultural land in Angola.
The agreement is focused on the development of a vast area of leased land located in Angola, with the goal of intensifying the cultivation of rice and avocado to maximize on the country’s fertile soil and favorable climatic conditions to achieve substantial yields.
Founded in 2019, E20 Investment specializes in financing and operating farms and processing facilities across the globe, with a particular focus on Europe, Central Asia, and Africa.
The joint venture is with Dubai Investments, another leading investment firm listed on the financial market of UAE.
The project will run for 18 months during which the two firms will turn Angolan arable land into the hub of agricultural production with a projected output of 28,000 tons of rice and 5,500 tons of avocado during peak season.
The initiative is timely as the International Financial Corporation (IFC) records that Angola has a high potential for agriculture on a large scale and can diversify its economy through this sector to overcome some constraints.
“Angola has great potential to produce high-value agriculture on a large scale,” stated the IFC’s representative in Angola, Hector Gomez Ang.
According to Gomez, the speedy growth in the country’s agriculture sector has triggered the entrepreneurial spirit of Angola ushering exciting prospects in the fast-paced environment.
The IFC report further outlines an increase in investment in the agricultural sector in Angola, referencing the cases of retail chain Alimenta Angola, whose expanding horticultural production has extended to supplying in stores.
Another fast-growing agricultural company listed in the report is Nova Agrolider, whose investments in its farms have increased exports of its bananas and other fruit to European and regional markets.
Additionally, data from BMI Research further reveals that the abundance of fresh water and arable land in Angola makes it particularly attractive for investments in agriculture.
This explains the current high investment rates in Angola including the ongoing project by Angonabeiro of Portuguese group Delta, who are investing in coffee production and processing in the country along with the drinks company Castel Group who are running an investment in the production of maize.
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