Angola’s path to prosperity lies in its sun and soil, not its oil

It is obvious that Angola’s long-term prosperity lies in its soil and sun rather than its oil as it strives for a sustainable future.

Its future depends on how well-developed rural areas can be transformed into hubs of innovation and economic rebirth thanks to its abundant solar resources and vast arable lands. In addition, doing so would expand the economy’s diversification and lead to more lucrative business opportunities, especially for young people and women.

Oil, which constitutes 30 percent of Angola’s gross domestic product and more than 90 percent of exports, operates largely in isolation from the rest of the economy. While generating significant revenues, it is subject to large price fluctuations, creates few jobs and rarely connects with local businesses.

As a result, communities have become more vulnerable to poverty, with an unemployment rate about 30 percent, and a staggering 53 percent unemployment rate among youth under 25.

A mass exodus to Angola’s capital, Luanda, reflects this vulnerability. Rural communities are underdeveloped and depopulated because nearly one-third of the population is now concentrated in Luanda, leaving rural communities. The country imports about $3 billion worth of food annually, which has a growing food bill as a result.

Sustainable rural development is impacted by a similar mass exodus from rural to urban areas in much of Africa. As of 2023, while Angola’s urbanisation rate was 69 percent, rates across the continent reached up to 91 percent in Gabon, 76 in Sao Tome &amp, Principe, 74 in Equatorial Guinea and 72 in Botswana. More frequently than not, this presents more pressing problems for food security, water shortage, and housing.

By utilizing its amazing natural resources, Angola could change this pattern and reverse it. It has some of the world’s highest solar radiation levels. This powerful natural resource could be harnessed to electrify rural areas (currently, close to half the country’s population lacks access to electricity) and energise the agricultural sector. Furthermore, only about 10 precent of Angola’s arable land is being cultivated. Agriculture has a lot of potential.

But a key challenge remains: How to attract young people back to rural areas they fled, returning not as a last resort, but as a promising economic and livelihood alternative?

The answer can be found in modern agriculture, not the traditional manual labour-intensive sector of the past. Angola’s agricultural revival, which is powered by clean energy and transformed by technology, could open up a lot of new and expanding avenues.

What is possible can be demonstrated by similar successes in other countries. Tanzania recently announced its food security has reached 128 percent, with the country now exporting surplus crops, supported by rural electrification, youth-focused training and land distribution initiatives.

Smallholder farmers in India have seen significant increases in crop yields as a result of solar-powered irrigation systems, demonstrating how technology can transform traditional farming. Agriculture’s exports in Vietnam increased by more than $60 billion as a result of the adoption of sustainable farming practices and improvements in water management and supply chains.

Investments in solar-powered agriculture in Angola could address the demand for high-value exports like avocados and specialty crops. Rural areas can become hubs of agricultural innovation by collaborating with local communities to strategically locate and develop infrastructure, starting with crucial power and connectivity needs. The entire agricultural value chain, from marketing and logistics to product development, con offer diverse and excellent business opportunities.

The Angolai government has launched the Programme to Accelerate Family Farming and Strengthening Food Security, acknowledging the value of agriculture and placing food security as one of its two pillars in its national development plan. However, much more is needed to stimulate the development of rural areas.

This includes deliberate interventions to facilitate the ease of doing business, agile policies, skills training in data-driven and digital agriculture, and innovative financing mechanisms specific to agriculture.

One example of such innovative financing comes from Nigeria, where the Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) mobilised more than $273m in guaranteed loans. This aided government policy in promoting agricultural growth by providing insurance and technical assistance to thousands of farmers.

Additionally, careful planning is required to prevent agricultural development from deteriorating healthy ecosystems or reducing biodiversity. Initiatives and training that encourage low-carbon-emitting sustainable practices, such as soil conservation techniques, hydroponics, drip irrigation and crop diversification, can help mitigate these risks, ensuring that Angola’s agricultural growth maintains the health of its ecosystems.

With strategic investment and policy support, Angola has the potential to reduce its reliance on food imports, create dignified livelihoods for its youth and emerge as a Southern African centre for diverse, productive, sustainable agriculture. Angola should take action right away, utilizing its sun and soil to create lasting, inclusive prosperity for all.

Source: Aljazeera