A memorandum of understanding was signed this Monday in Luanda by the CEO of the Chinese multinational, Fan Juntao, and the Minister of Agriculture and Forestry, Isaac dos Anjos.
The Ministry of Agriculture and Forestry emphasized in a press release that the memorandum also provides for the installation of modern genetic improvement laboratories for seed certification, the promotion of agricultural inputs to support the pesticide and fertilizer production chain, and the establishment of an intelligent storage system in key agricultural regions, as well as the signing of an agreement to purchase agricultural products.
"This instrument should cover several areas of cooperation, including: a) Promoting large-scale soybean production in Angola's main agricultural regions; b) creating and optimizing a complete agricultural value chain, including seeds, inputs, machinery, technology, silos, and export channels; c) establishing a phytosanitary inspection and quarantine system for cereal exports to the Chinese market, promoting the signing of a bilateral agreement," the statement stated.
Speaking to the press, Fan Juntao stated that the company has already made 3000 hectares of land available in the province of Cuanza Sul and 5000 hectares in the province of Malanje, aiming to acquire up to 20,000 hectares between this year and next, with the ambition of reaching, more broadly, 100,000 hectares.
"Our estimated investment value at this stage is 250 million dollars, not including future operations. We will implement the project in phases; all financing will come from Chinese investors, led by CITIC," he emphasized.
Fan Juntao said that the priority will be corn production, the main cereal for the country's needs, and soybean production in the second phase.
"Because our future plan is, after meeting local needs, to export soybeans to China," he emphasized, emphasizing that the goal is to introduce high-tech production.
According to the businessman, the initial forecast is to reach eight tons of corn per hectare and five tons of soybeans per hectare.
In turn, the Minister of Agriculture and Forestry considered this memorandum signed with CITIC for large-scale production projects "historic," aiming to "open new markets for production in Angola."
Isaac dos Anjos highlighted the advantage of having an existing buyer for soybeans — the producer itself — and also welcomed this window of opportunity for Angola to align itself with exporting products to Asia.
"It's a unique opportunity and one we cannot lose sight of," the minister stated, emphasizing that the basis for the distribution was set at 60 percent for export and 40 percent for local consumption, and the importance of this grain as a complement to livestock production.
The Minister of Agriculture and Forestry announced the signing of a new agreement with another Chinese company for next Thursday, signifying that the country is open to the presence and participation of multinationals from various parts of the world.
"Let's not be jealous of the fact that we're opening [opportunities] to China. We have a lot of land, a lot of land, and we're waiting for investors," he stated.
The government is facilitating and encouraging land concessions, phytosanitary treatment and monitoring, and large-scale standards and protocols, the minister added.
