Agricultural Watch

Angola becoming important destination for SA products

Angola.jpg

Angola has great potential as a growth market for South African agricultural, forestry and fishery products, and that in the near future too.

“As one of the fast growing economies in Africa, there is a great potential for South Africa to increase its market share. This is further underscored by the fact that Angola imports most of its food due to its weaker industrial capacity as a result of the adverse impact of the civil war.”

This is the conclusion reached by the National Agricultural Marketing Council (NAMC) in its report on the Agriculture Forestry and Fisheries (AFF) trade relations between South Africa and Angola.

According to NAMC, Angola is currently South Africa’s 20th largest trading partner for all commodities, and is also the 7th largest South African market for AFF products after the Netherlands, the United Kingdom, Zimbabwe, China, Mozambique and Japan.

In a statement published on the Angola Embassy’s website it is stated that “Angola and South Africa started a new era of economic cooperation with the creation of a strategic partnership between the two countries from August 2009, when President Jose Eduardo dos Santos and his counterpart, President Jacob Zuma, signed, in Luanda, the first agreements on air services and diplomatic consultation as well as memorandums on trade, industry, commerce, housing, and sport and recreation.”

Markus Weimer, in an article on the website of Chatham House, described this meeting between Angola’s President dos Santos and President Jacob Zuma as highly significant, not least because Angola and South Africa have not always seen eye to eye.

“The relationship between President dos Santos and former South African President Thabo Mbeki was particularly frosty,” he describes the situation.

“Mbeki was alarmed when Angola supported Laurent Kabila’s attempt to overthrow Mobutu in the Democratic Republic of Congo while the South African leader was trying to mediate.”

Mbeki also attempted to foster a peace agreement between the Angola government and Jonas Savimbi’s UNITA. That annoyed dos Santos who felt that South Africa had never really appreciated the role that the MPLA played in fighting apartheid.

Zuma on the other hand is a friend of Dos Santos and he recognised the importance and potential of relations between Angola and South Africa. During his visit to Angola, Zuma announced new business ties and paid tribute to the Angolans for their support to the ANC during the anti-apartheid struggle.

According to NAMC Angola is not enjoying the benefits of free trade area (FTA) with all other Southern African Development Communities (SADC) as it has not acceded to SADC FTA.

The country is a member of the oil-producing countries organisation OPEC and in 2013 Angola’s oil sector accounted for about 85% of Angola’s Gross Domestic Product (GDP) and 96% of its exports. Agriculture accounted for 10% of GDP, and diamonds 5%.

Maize was the main Angolan import from South Africa in 2009 – 2013 and it totalled R249 million. South African AFF products’ main competitors in the Angolan market are France, Brazil and Portugal, with the latter the main competitor for a variety of products.

Import tariffs applied by Angola ranged from 5% to 30%. These countries are all members of the World Trade Organisation (WTO) and therefor access Angola’s market through most favoured nation rates.

“However, as an African country, South Africa enjoys a strategic advantage over these competitors given the close geographical connection between the two countries,” NAMC said in their report.

“Given that Angola has not yet acceded to the SADC FTA, South Africa also accesses the Angola market through the Most Favoured Nation (MFN) trade regime.”

The imported maize and cane/beet from South Africa were subject to a 5% import tariff while the liqueurs, cigarettes and yogurt carried a 30% import tariff.

“Trade data analysis indicates that due to Angola’s weak industrial capacity the country has not been able to maximise the benefits of South Africa’s generally low MFN applied rates,” NAMC noted.

The SADC Secretariat is currently working with the Angolan government to facilitate their speedy accession to the SADC FTA. Angola’s accession will unlock preferential access to that market which will enable South Africa to increase its market share.

Angola has great potential as a growth market for South African agricultural, forestry and fishery products, and that in the near future too. (Read more)

“As one of the fast growing economies in Africa, there is a great potential for South Africa to increase its market share. This is further underscored by the fact that Angola imports most of its food due to its weaker industrial capacity as a result of the adverse impact of the civil war.”

This is the conclusion reached by the National Agricultural Marketing Council (NAMC) in its report on the Agriculture Forestry and Fisheries (AFF) trade relations between South Africa and Angola.

According to NAMC, Angola is currently South Africa’s 20th largest trading partner for all commodities, and is also the 7th largest South African market for AFF products after the Netherlands, the United Kingdom, Zimbabwe, China, Mozambique and Japan.

In a statement published on the Angola Embassy’s website it is stated that “Angola and South Africa started a new era of economic cooperation with the creation of a strategic partnership between the two countries from August 2009, when President Jose Eduardo dos Santos and his counterpart, President Jacob Zuma, signed, in Luanda, the first agreements on air services and diplomatic consultation as well as memorandums on trade, industry, commerce, housing, and sport and recreation.”

Markus Weimer, in an article on the website of Chatham House, described this meeting between Angola’s President dos Santos and President Jacob Zuma as highly significant, not least because Angola and South Africa have not always seen eye to eye.

“The relationship between President dos Santos and former South African President Thabo Mbeki was particularly frosty,” he describes the situation.

“Mbeki was alarmed when Angola supported Laurent Kabila’s attempt to overthrow Mobutu in the Democratic Republic of Congo while the South African leader was trying to mediate.”

Mbeki also attempted to foster a peace agreement between the Angola government and Jonas Savimbi’s UNITA. That annoyed dos Santos who felt that South Africa had never really appreciated the role that the MPLA played in fighting apartheid.

Zuma on the other hand is a friend of Dos Santos and he recognised the importance and potential of relations between Angola and South Africa. During his visit to Angola, Zuma announced new business ties and paid tribute to the Angolans for their support to the ANC during the anti-apartheid struggle.

According to NAMC Angola is not enjoying the benefits of free trade area (FTA) with all other Southern African Development Communities (SADC) as it has not acceded to SADC FTA.

The country is a member of the oil-producing countries organisation OPEC and in 2013 Angola’s oil sector accounted for about 85% of Angola’s Gross Domestic Product (GDP) and 96% of its exports. Agriculture accounted for 10% of GDP, and diamonds 5%.

Maize was the main Angolan import from South Africa in 2009 – 2013 and it totalled R249 million. South African AFF products’ main competitors in the Angolan market are France, Brazil and Portugal, with the latter the main competitor for a variety of products.

Import tariffs applied by Angola ranged from 5% to 30%. These countries are all members of the World Trade Organisation (WTO) and therefor access Angola’s market through most favoured nation rates.

“However, as an African country, South Africa enjoys a strategic advantage over these competitors given the close geographical connection between the two countries,” NAMC said in their report.

“Given that Angola has not yet acceded to the SADC FTA, South Africa also accesses the Angola market through the Most Favoured Nation (MFN) trade regime.”

The imported maize and cane/beet from South Africa were subject to a 5% import tariff while the liqueurs, cigarettes and yogurt carried a 30% import tariff.

“Trade data analysis indicates that due to Angola’s weak industrial capacity the country has not been able to maximise the benefits of South Africa’s generally low MFN applied rates,” NAMC noted.

The SADC Secretariat is currently working with the Angolan government to facilitate their speedy accession to the SADC FTA. Angola’s accession will unlock preferential access to that market which will enable South Africa to increase its market share.

by Hennie Duvenhage

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