CABINDA PROVINCE AGRICULTURE VALUE CHAINS DEVELOPMENT PROJECT
- Reference: P-AO-AAZ-001
- Appraisal Date: 05/06/2017
- Board Presentation: 11/10/2017
- Status: LendingLEND
- Implementing Agency: BUREAU D' EXECUTION DU PROJET BAD-FAD EDUCATION II
- Location: Cabinda Province
The project will be a value chain development intervention on selected commodities. It will focus on the provision of the enabling environment for agricultural development of crops (cassava, sweet potato, peanut, beans, coffee, cocoa and oil palm); marine and inland fisheries; small livestock (poultry and small ruminants); and horticulture (vegetables and fruits). It will also deal with the rehabilitation and construction of rural infrastructure, namely feeder roads, market centers, health centers, primary schools, and improve rural energy access. The overall sector goal of the proposed Project is to contribute to wealth creation, as well as food security. Its specific objective is to increase, on a sustainable basis, the income of smallholder farmers and rural entrepreneurs that are engaged in the production, processing, storage and marketing of the selected commodity value chains. The direct beneficiaries are the 25,000 economically active smallholders living in the rural areas who are already participating in agriculture. The indirect beneficiaries include existing 40 small, medium and large-scale entrepreneurs and business associations who provide services to the producers and processors. Among the target group, women and youth play a major role in crop and animal production, processing, small enterprises operation and marketing. They will be specifically targeted for project activities and benefits.
The project will carry out training programs to equip smallholders (e.g. youth and women) on agricultural techniques and entrepreneurship skills in agri-business in line with the Bank's Strategy for Jobs for Youth in Africa 2016-2025. The use of fertilisers in Angola is estimated at 8.8 g/ha and falls far short of the world's average of 119.9 g/ha. The Project will boost the use of production enhancing inputs by initially subsidizing them in the first two years, like in the case of Liberia and Malawi. Thereafter, a risk sharing facility and input supply system established and with the private sector taking the lead. There will also be an e-registration exercise for farmers in the areas of interest taking advantage of the ICT infrastructure investments in place.
The specific project objectives are to increase farmers' food security and incomes through increased agricultural output and value addition of selected commodities
Angola's Long Term Plan, dubbed "Vision 2025" articulates the country's conceptual view to achieve sustainable development and seeks to "extricate the country from poverty by promoting economic growth, macroeconomic stability and employment". It is based on five main dimensions:
(i) macroeconomic stability;
(ii) human development and employment creation;
(iii) private sector development;
(iv) economic competitiveness and structural transformation; and
(v) infrastructure development and regional integration. Vision 2025 was designed to be developed in a period of 25 years, in three stages, with concrete objectives and targets and which may be adapted: 2000-2005 (peace, national reconstruction and economic growth startup); 2005-2015 (consolidation of national reconstruction, modernization and development); and 2015-2025 (sustainability and growth). The National Development Plan (NDP) 2013-2017 underscored aspects of the "Vision 2025" by stressing the need to:
(i) diversify the economy;
(ii) invest in infrastructure (in particular, transport, energy and water and sanitation);
(iii) enhance better management of natural resources; and
(iv) expand employment opportunities to reduce poverty.
Angola has been facing the paradox of high economic growth but with prevailing challenges in terms of poverty and income inequality, coupled with rising public debt needed to cover the fiscal deficit arising from the sharp decline in oil prices. The Government is adjusting its policies to facilitate the needed economic transition as international oil prices are not expected to recover in a near term. Two key policies were adopted, namely:
(i) the Accelerated Program for Economic Diversification in February 2015, and
(ii) the Strategy for Mitigation of the Oil Crisis adopted in January 2016. The most structured political document for Cabinda is the 'Development Plan for Cabinda Province 2013-2017' that applies the National Development Plan 2012-2017 (PND) in the Province. It is based on four strategic areas of: public institutions development; infrastructures and urban development; economy and production development; and social development,
The CSP 2017-2021 is aligned to the Bank's Feed Africa - Strategy for Agricultural Transformation in Africa 2016-2025; the Bank Group Industrialisation Strategy for Africa 2016-2025; the Bank's Private Sector Development Strategy 2013-2017; the Bank Group Strategy for the New Deal on Energy for Africa 2016-2025; the Bank Group Strategy for Jobs for Youth in Africa 2016-2025; Bank's Regional Integration Policy and Strategy 2014-2023, and the Bank Group Gender Strategy 2014-2018. Lastly, the CSP is fully aligned to the achievement of Angola's SDGs, in particular, the SDG 1 ("No poverty"), SDG 2 ("No Hunger"), SDG 5 ("Gender equality"), SDG 6 ("Clean water and sanitation"), SDG 7 ("Clean energy"), SDG 8 ("Good jobs and economic growth"), SDG 9 ("Innovation and infrastructure"), SDG 10 ("Reduced inequalities"), and SDG 13 ("Protect the planet").
The project draws from the country's agricultural sector plan - the National Medium Term Development Plan for the Agricultural Sector (2013-2017), the Angola Energy 2025 Vision, the National Strategy for Renewable Energy and the Transport Sector Development Strategy (2013-2017). Overall, the interventions under Pillar I of the CSP will help achieve the strategic goals of the Bank's High 5s of Feed Africa and Industrialize Africa while Pillar II interventions will assist in the achievement of the strategic results of the High 5s of Light up and Power Africa, Integrate Africa and Industrialize Africa.
The project fits in with the two complementary pillars of Bank's intervention in Angola in the just approved CSP 2017-2021. The Bank's strategy focuses on:
(i) inclusive growth through agricultural transformation; and
(ii) support to sustainable infrastructure development, in particular, in energy and transport. The agricultural transformation interventions under the pillar I are aligned with the Bank's High 5s priorities of Feed Africa and Industrialize Africa, while the infrastructure development interventions under pillar II will help achieve the following High 5s: Light-up and power Africa, Integrate Africa and Improve quality of life of Africans. It also fulfils the requirement of the Ten-Year Strategy (TYS, 2013-2022) as it pertains to inclusive growth objective through the involvement of youth, women and skills development. It is also in alignment with Pillar 2 (improving rural infrastructure and trade-related capacities for market access) and Pillar 3 (increasing food supply and reducing hunger) of the Comprehensive African Agriculture Development Program (CAADP).
The overall impact of the CPAVCD Project include improved food security, job creation and wealth creation for commodity value chain actors. Through improved agricultural production, productivity and market linkages, about 15,000 jobs will be created, of which women and youths account for about 60%, along the value chains. It is envisaged that there will be income increase by 25% along the value chains and employment of women and youth in the agriculture sector.
The project will also contribute to the improvement of socio economic indicators especially on reduction of poverty, maternal and child health, reduced child literacy, improved schooling rate of children especially girls due to improved communication through rehabilitated roads, provision of schools, community health centers, potable water and sanitation facilities
AGBOMA Patrick Chukuka - RDGS2