Angola's Manufacturing Sector: What's Being Produced?

Angola, officially the Republic of Angola, is a country in Southern Africa with a fast-growing economy. Angola has vast mineral and petroleum reserves, and its economy is among the fastest-growing in the world, especially since the end of its civil war in 2002. However, the standard of living remains low for the majority of the population, and life expectancy and infant mortality rates in Angola are among the worst in the world. Angola's economic growth is highly uneven, with the majority of the nation's wealth concentrated in a disproportionately small sector of the population. In this paragraph, we will explore the topic of what Angola manufactures and discuss the country's industrial sector.

Angola's textile industry

Textile Industry Challenges

The country's textile and apparel industry has faced significant problems, including a lack of domestic raw material production and a dependence on imports. This has led to the closure of most fabric plants in Angola. The high cost of importing raw materials has also contributed to the challenges faced by the industry.

Financial Support and Economic Diversification

The textile industry in Angola received a much-needed boost with financial support of US$1 billion from the Japanese Bank for International Cooperation (JBIC). This investment will fund three major plants in the country. Additionally, the country has taken steps towards economic diversification by importing textile machinery from Japan, South Korea, and China. This is a crucial step in strengthening the industry and reducing reliance on imports.

Impact on Employment and Prices

The development of new textile units is expected to create over 3000 jobs. However, until these units are operational, the formal sector relies on importing new clothes from countries like Brazil, Portugal, South Africa, and low-cost Asian countries. The high prices of these imported clothes make them unaffordable for most Angolans, with 80% of the population depending on second-hand clothing from the United States and Europe.

Informal Sector and Market Share

The informal sector in Angola includes low-priced fresh clothes, but the quality is not on par with imported clothing. Nevertheless, the informal textile sector holds a substantial market share, influencing the demand for new clothing. The formal sector has a market share of 20%, while the informal sector accounts for 80%.

Government Initiatives

The Angolan government is actively contributing to the revival of the textile sector. In addition to importing machinery, the government is supporting cotton planting in Kwanza Sul, a region that was once a centre of cotton production. The agriculture ministry has set a goal of producing 100,000 tons of cotton annually, with 40% coming from small producers and the rest from large plantations.

International Interest

The prospects of Angola's textile industry have caught the attention of Zimbabwean entities, who are keen on establishing viable textile supply chains in the country. With a combination of financial support, infrastructure development, and international interest, Angola's textile industry is showing promising signs of recovery and growth.

Angola's clothing factories

The establishment of this factory is significant as it created 120 jobs in the first phase and is expected to generate 400 more in the second phase, with the prospect of employing 15,000 people by 2026. However, the factory currently relies heavily on imported raw materials due to the domestic market's inability to meet demand. Despite this challenge, the clothing industry in Angola is making strides, and Luanda Province also has two uniform and gown factories in Viana and a uniform factory in the municipality of Cazenga.

The development of the textile and clothing industry in Angola is a key focus for the government, which recognises the need to encourage national production to feed the industry and reduce dependence on imports. This includes addressing the shortage of local raw materials and skilled labour, as well as promoting private sector investment and cooperation.

Angola's self-sufficiency in fertiliser production

Angola, officially the Republic of Angola, is a country in southwestern Africa with a fast-growing economy. It has vast mineral and petroleum reserves and is among the highest of the oil-producing countries in sub-Saharan Africa.

Angola's economy has grown significantly since the country achieved political stability in 2002, mainly due to the fast-rising earnings in the oil sector. However, high poverty rates and blatant social inequality are still prevalent in the country, largely due to persistent authoritarianism and corruption.

The Angolan government is working to create the conditions to stimulate the production of building materials and other goods. The country's mining sector is developing an action plan to achieve self-sufficiency in the area of fertiliser production. Angola's Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, has stated that the country has the potential to become self-sufficient in fertiliser production.

Angola's economy is heavily dependent on the oil sector, which accounts for the largest proportion of exports. This makes the economy highly vulnerable to shifts in oil prices. However, the country also has other significant industries, including diamond mining and agriculture.

The manufacturing sector in Angola produces a range of goods, including construction materials, refined petroleum, equipment for the petroleum industry, processed food, textiles, and electrical goods. The construction industry, in particular, has seen increased activity as the government prioritises reconstruction.

Overall, Angola has the potential to achieve self-sufficiency in fertiliser production and is working to diversify its economy and reduce its dependence on the oil sector.

Angola's caustic soda and calcium hypochlorite factories

Angola is set to gain its first Caustic Soda and Calcium Hypochlorite factory, to be built in the province of Benguela. The factory will be part of the Salinas Calombolo project and will occupy approximately five thousand square kilometres. The Development Bank of Angola (BDA) and the partners of the initiative signed two contracts for the transfer of the Salinas Calombolo and Alexandre's House projects.

The factory will have the capacity to produce high-quality chemicals and generate 32 direct jobs. The construction of the manufacturing unit is part of Deustche Bank's credit line, representing an industrial advance and a tangible commitment to sustainable growth and job creation in the country. The installation of the factory will contribute to the improvement of public health, especially in water treatment and surface disinfestation. It will also help to reduce the import of salt in the country, which currently spends 650 million dollars annually on salt-derived products.

The Salinas Calombolo project is valued at 24 million 831 thousand and 412 euros, while the Alexandre's House project has funding of 47 million 75 thousand and 72 euros. Alexandre's House will be implemented in the province of Benguela and will focus on the supply and assembly of a warehouse for the reception, freezing, and processing of fish in the municipality of Baía Farta. This initiative aims to boost the fishing sector and the regional economy, using modern fishing vessels and an advanced industrial unit for processing and freezing fish, and is expected to generate 203 direct jobs.

The installation of the Caustic Soda factory will reduce Angola's dependence on imports and strengthen the national economy. The country's economy is among the fastest-growing in the world, and it has vast mineral and petroleum reserves. However, economic growth is uneven, with most of the nation's wealth concentrated in a small part of the population.

Angola's oil and gas industry

Angola holds abundant untapped oil and gas resources, with an estimated 9 billion barrels of proven crude oil reserves and 11 trillion cubic feet of proven natural gas reserves. The country has the potential to further develop its oil and gas sector, as it has not yet unleashed the full potential of its hydrocarbon sector. Angola's government has implemented a series of reforms to boost the industry, including transferring concessionaires' rights from the national oil company Sonangol to the National Agency for Petroleum, Gas and Biofuels (ANPG).

The ANPG has been responsible for regulating upstream operations and awarding concessions blocks for onshore and offshore exploration and production fields. To stimulate investments, the ANPG planned a six-year licensing round from 2019 to 2025, auctioning a total of 50 new blocks. Angola's oil and gas sector offers market opportunities for both domestic and international companies, with a focus on exploration and production, equipment, and services.

The Angolan government has also prioritized refinery development to reduce the country's dependence on imported refined petroleum. Angola currently imports 80% of its refined petroleum products, and the refining of crude oil and distribution of refined oil remains well below domestic demand. The government has plans for the construction and expansion of national refinery plants, with upgrades to the country's only operating facility in Luanda and three new projects in the pipeline.

The country's oil and gas sector faces challenges, including high production costs, restrictions on foreign exchange, and bureaucratic processes for contract signing and renewal. Despite these obstacles, Angola's oil and gas industry continues to attract investment and has the potential for significant growth and development.

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