A few years ago, Angola was poised to graduate from the group of least developed countries (LDCs), a significant milestone, since 33 of the 45 LDCs are in Africa. Graduating from the UN list of LDCs typically boosts investor confidence and gives countries bragging rights for their sound economic management and development progress. But the COVID-19 pandemic, external debt, oil price volatility — oil accounts for about 94 per cent of the country’s foreign earnings — and other macroeconomic headwinds slowed its progress.
Yet the country remains one of Africa’s largest economies, with recent growth powered by oil revenues and a growing non-oil sector, according to the International Monetary Fund.
Tackling poverty
Transitioning from a least developed to a developing country requires addressing many development challenges. With unemployment reaching 29.6 per cent, according to the World Bank, the government is tackling poverty through several development pillars, including structural economic transformation, infrastructure development and human capital development. And support is coming from many partners, including the UN Conference on Trade and Development (UNCTAD) and the European Union (EU).
Our support for the private sector … has prompted the development of certification frameworks and infrastructure.
- Structural economic transformation by investing in sectors such as agriculture, livestock and fisheries, and improving the ease of doing business.
- Infrastructure development by building modern roads, ports and logistics hubs.
- Human capital development by training its entrepreneurs in essential skills and knowledge.
Taking a whole-of-society approach
The Train for Trade II programme is unique because of its holistic and whole-of-society approach. It addresses several development challenges simultaneously, ensuring mutually reinforcing positive outcomes.
UNCTAD Director of the Division for Africa, Least Developed Countries and Special Programmes, Paul Akiwumi, emphasizes the programme’s extensive focus on policy reforms, economic diversification, value chain development, entrepreneurship support, trade negotiation capacity, international export standards and enhanced trade logistics.
“On an institutional level, our support for the private sector’s ability to export such products as honey has prompted the development of certification frameworks and infrastructure within the country,” says Mr. Akiwumi.
He adds, “The programme has a profound impact, including raising a new generation of entrepreneurs destined to drive this country towards the future.”
Olga Afonso Dicamba, director-general of the Angolan National Institute of Quality Infrastructure, says the programme is making the government more effective in implementing quality controls so that Angolan products meet international norms and standards.
We want to make sure that ‘Made in Angola’ signifies quality.
“We want to make sure that ‘Made in Angola’ signifies quality,” Ms. Dicamba stresses in an interview. “For example, the training workshops organized for people operating in the fisheries sector gives them standards they can use — top quality process, from production to distribution.”
- Green exports: Diversifying the economy through non-oil trade opportunities.
- Commercial diplomacy: Building capacity in trade policymaking, analysis and negotiation.
- Trade facilitation: Supporting the implementation of the World Trade Organization’s Trade Facilitation Agreement.
- Transport and trade logistics: Promoting sustainable transport and trade logistics systems, corridor and cluster-based approaches.
- Empretec: Investing in small and medium enterprises and creating an Entrepreneurship Policy Framework.
- Investment: Reviewing investment policies.
- Cultural and creative industries: Strengthening the cultural and creative industries through a coherent strategy and training for public and private sector agents.
Revving up training
The results have been impressive. A total of 2,856 individuals, comprising 1,931 males and 925 females, have received training in various fields. With hundreds of “empretecos” revving up business activities nationwide, experts now predict an economic upswing that could put Angola on a sustainable development trajectory.
Small businesses are sprouting across the country, creating jobs for many. About 85 per cent (450 people) of entrepreneurs trained under the Train for Trade II Programme report an increase in sales and a 72 per cent annual growth rate in job creation, UNCTAD reported. Managers of 30 of the top 100 companies in Angola have undertaken Empretec training.
In Soyo in Northern Angola, empreteco members of the Association of Entrepreneurs of the Province of Zaire are cultivating vast agricultural fields, building warehouses and guest houses, and providing employment opportunities.
In Luanda, the Angolan capital, young techies are incubating startup ideas and driving innovation.
In Huambo, the José Eduardo dos Santos University is training a group of women and men in contemporary honey production techniques, boosting local entrepreneurship.
In N'zeto, Antonio Sambiamo, a local government administration official, is not only venturing into large-scale farming but also organizing six musicians into a group, hoping to leverage upcoming opportunities in the creative sector.
In Lobito, 21-year-old Ariana Chiteculo is starting a cake-baking and snacks enterprise, aspiring to grow it into a bakery while paying for her own college education. Her success story exemplifies how Empretec training empowers young women to found businesses, employ staff and contribute to their local economies.
Train for Trade II programme is a global success story for the Sustainable Development Goals.
Cutting red tape
To promote investment, Angolan leaders are gradually dismantling bureaucratic bottlenecks, rejuvenating intra-Angola and international trade. Their work includes ongoing reviews of the land laws, more liberal access to foreign exchange for Angolan entrepreneurs and a simplified entry visa process, among other initiatives.
“Our goal is to make Angola a hub for export in the region,” says Manuel Bessa, a technical staff at the country’s export agency, Agência de Investimento Privado e Promoção Das Exportações..
As diversification gains momentum, Angola is increasing mass production of products like honey, fish and others. A massive fish aquaculture project is underway in Porto Amboim, Kwanza Sul Province, 270 km Southeast of Luanda. When operational, it could produce 1,000 tonnes of fish annually for domestic and foreign markets.
Saraiva Santos, president of the National Association of Aquaculture, recently returned from Vietnam where he participated in the training organized by UNCTAD on adding value sustainably to fisheries and aquaculture products for exports. He predicts that “2024 will witness a massive boost in aquaculture in Angola.”
The government is establishing logistics hubs in six strategic locations — Luvo, Soyo, Lobito, Caála, Luau and Arimba — around the country, equipped with phytosanitary inspection and enhanced storage facilities. In November, the government inaugurated an ultramodern international airport in Luanda.
With UNCTAD’s support, the government is also reviewing the nation’s copyright policies to bolster the creative economy, a sector with great job-creation potential.
Catarino Fontes Pereira, president of the board of directors of the Angolan Regulatory Agency for Cargo Certification and Logistics, envisions a high level of logistical interoperability by 2025; and officials are skillfully negotiating logistics cooperation with their counterparts in other countries.
Keys to success
The UN Department of Economic and Social Affairs (UNDESA) recognizes the Train for Trade II programme as a global success story for the Sustainable Development Goals, specifically its good practices for implementation. Now UNCTAD seeks to replicate its success in other countries, under a broader “Transforming4Trade” programme — one of the UN’s 12 High Impact Initiatives to scale up action towards achieving the SDGs.
The programme’s success stems primarily from its structure, the government’s full support and effective coordination. Its broad areas of focus stimulate “structural economic transformation through a holistic approach to development,” Mr. Akiwumi explains.
The Ministry of Industry and Commerce coordinates the programme on behalf of the Angolan government, and another 22 ministries are powering its implementation, convening annually to review progress.
In addition, the programme has a ministerial-level steering committee that meets annually to set policy, review progress, and provide strategic guidance, and a technical committee with representatives from various ministerial departments. The technical committee meets regularly to identify challenges, suggest solutions, and make recommendations to the steering committee.
Also, the country’s Secretary of State for Commerce Amadeu de Jesus Leitão Nunes credits UNCTAD with effective coordination. “We are fortunate to have UNCTAD presence in Angola to help create consensus and engage with other institutions.”
Mr. Nunes hopes the EU will continue its funding beyond 31 December 2023, when the programme ends. Should it discontinue funding, he said the government would explore alternative funding sources.
Such levels of interest and commitment have led to tangible results. They are testaments to what Angola can achieve through concerted, coordinated and collaborative efforts.
