The Angolan agribusiness, Giasop Group is investing US$30 million in agricultural projects, including livestock breeding and the upgrading and expansion of orchards, to ensure a supply of raw juice for the company’s processing plant, according to O Pais. The bulk of the investment is being earmarked for the expansion of Fazenda Boa Fruta – a 46 hectare fruit farm in Porto Anboim, Kwanza Sul province. As part of the upgrade, Macau Hub reports that the company plans to improve the quality of the orange trees at the site, and to plant additional mango trees, passion fruit tree, and guava trees to supply its factory, as well as upgrading the existing irrigation system.
Natural Amboim, the group’s processing plant is also located in Kwanza Sul and has the capacity to produce 20,000 liters of mango, orange, pineapple, and passion fruit juice per day, according to Ecofin Agency. To do this, the factory can process 40 tons of tropical fruit per day, however, there is not sufficient local supply of fresh fruit, driving the group to currently rely on imports of concentrates from South Africa and Namibia, according to O Pais.
The plant also produces yogurt, milk, cheese, and butter, with two milk lines with the capacity of 30,000 liters and 15,000 liters respectively. To meet the group’s need for raw milk, a portion of the planned investment will be committed to funding the group’s cattle breeding program focused on a herd of Holstein and Jersey cows.
“You need to turn…problems into business opportunities giving solutions to the problems that created the crisis,”Miji Feliciano, general director of the company told O Pais, adding, “The reduction of imports, given the lack of foreign exchange in both the formal market and informal, as well as delays in bank transfers, gave us a new opportunity.”
Although Angola has been one of the fastest growing economies in Africa, the significant slump in global oil prices has cut into the country’s gross domestic product (GDP), resulting in only middling growth of 4.4% in 2015, according to Mordor Intelligence. In the absence of oil revenue, agribusiness and agriculture are marked industries of growth for the country, but insufficient infrastructure, unreliable electricity service, poor roads, the lack of documented land ownership, and the lack of access to foreign exchange as a result of the country’s loss of oil revenue have hampered growth in agricultural production. In spite of this, the country has increased its output of fruit, vegetables, eggs, yogurt, juice and meat on a commercial scale, according to The Economist.