The government of Angola will soon introduce the mechanisms needed for agricultural insurance, in order to minimise the risks of natural phenomena, boost agricultural activity – thereby preventing imports – and also provide investment guarantees in the sector, according to the Minister for Agriculture and Rural Development, Afonso Pedro Canga, quoted by ‘Jornal de Angola’.
Speaking at a recent meeting that gathered representatives of insurers and commercial banks, an initiative of the Angolan Agency for Regulation and Supervision of Insurance in partnership with the Ministries of Agriculture and the Economy, the Minister declared that agricultural insurance would serve to minimise damage resulting from natural disasters, as well as for repayment of loans granted by banks to farmers. “The insurance gives banks more confidence when providing loans,” said Afonso Pedro Canga.
In the event of unexpected risks agricultural insurance guarantees small, medium and large producers recovery of what they have lost, said the same responsible, who at the same time noted that the agricultural sector is experiencing significant growth but production is still not enough to satisfy internal market needs.
The development of agricultural is mandatory in order to help diversify Angola’s economy at a time when oil prices are lowering, since this sector may be the second main source of income for the country. However, a focus in quality and increased production and productivity is needed for this goal to be achieved.