Government launches food reserve and hopes to reduce prices by up to five percent

The intention was expressed by the minister of Industry and Commerce, Victor Fernandes, during the official act of launching the operationalization of the REA, which should immediately place on the market, in the initial phase, up to 354,000 tons of food.

"The entry into operation of the REA will guarantee the acquisition, storage and distribution of more than 520 thousand tons of food products, many of them already produced or processed locally, in job-generating industries, with an impact on the reduction of prices in up to five percent for the final consumer," said the government official.

Sugar, in 50 kg bags, rice, in 25 kg bags, and chicken thigh, in 10 kg boxes, are the products to be made available in this first start-up phase of the reserve, which will be followed by six other products from the 11 that integrate the management of the OER.

The authorities plan to progressively increase the amount of food until reaching 520,000 tons.

REA is a Government initiative that aims to regulate the market and influence the price reduction of essential food products that are part of the basic food basket in partnership with GESCESTA, the company that won the public tender for the management of this reserve.

The Angola Customs Warehouse (EAA), in Luanda, is the logistical base of the REA, where the formal act of launching this reserve would initially take place, but due to the claims of the EAA officials, who complain of alleged "arbitrary" dismissals to ceremony was transferred at the last minute to the headquarters of the Ministry of Industry and Commerce.

According to the minister of Industry and Commerce, who intervened at the ceremony, with this initiative, the State also intends to "maintain and even strengthen the policies and instruments to support the different operators that intervene in the food market".

"Always aiming at a more important objective, the benefit and improvement of the quality of life of our populations", said Victor Fernandes.

In addition to its functions of stabilizing and regulating food prices, he stressed, the reserve "will also be a mechanism for promoting national production, as it will act as a major buyer of "stocks" from producers of organized cooperatives and farmers commercials".

Victor Fernandes also stated that, "although affected by the circumstances of the pandemic", the Government "has been taking important measures to protect and improve the lives of families and companies, investing in the acceleration of the productive and transforming industry in the country".

The Strategic Food Reserve will have an advisory committee, which includes some ministerial departments and the management company, and will be chaired by the Ministry of Industry and Commerce.