Angola will become self-sufficient in wheat flour production by 2020, taking into account the forecast of the country’s three mills producing 208,000 tons per year, totaling 840,000 tons.
At present, the country’s needs for wheat flour are estimated at around 520,000 tonnes and local production is around 420,000 tonnes per year – an annual deficit of 100 tonnes, which is imported, according to Ministry of Industry data provided by spokesman for the Angolan flour milling industries, César Torn.
“Grandes Moagens de Angola (GMA) has an installed capacity to produce up to 280 thousand tons of wheat flour per year, Kikolo 140 thousand, with a possible expansion process to double (280 thousand tons), and the factory Grupo Leonor Cart is ready to supply the market since early December 280,000 tons / year, ”said César Torngado.
Regarding the delay in increasing the flour production capacity of the Kikolo mill from 140,000 to 280,000 tonnes a year, the spokesman explained that it is due to the impact of VAT on equipment imports.
Currently, the three national mills have installed capacity to produce 700 thousand tons of wheat flour annually, contributing to the supply of the market, the reduction of imports, and the creation of direct and indirect jobs in Luanda and Benguela.
Until 2017, before the inauguration of GMA and Kikolo, all flour consumed in Angola was imported. The three units are the result of a US $ 300 million private investment.
GMA created with its start-up 150 direct jobs, Kikolo 115 and Leonor Cart 100.
In addition to the production of wheat flour, Angolan mills also produce pellet meal, which is exported and, consequently, contributes to increased exports and foreign exchange revenues.
The resumption and dynamization of national agricultural production is another of the themes that the Angolan milling industry liked to see on the march, because in order to produce flour, companies must import one million tons of wheat per year.
If wheat is produced in Angola, the activity of small and medium farmers will be boosted, employment increased, people settled in the provinces and foreign exchange savings strengthened.
According to César Rasgado, “national production of wheat flour has several challenges and the cost structure of inputs is heavy and has been aggravated following the devaluation of Kwanza.
What most aggravates production costs is the absence of road media and the absence of ancillary utilities for industrial production.
Due to the uncertainty of the energy and water supply networks, the factories are equipped with generators for the supply of energy in case of interruption of supply by the public grid. Additional water reservoirs have also been created to ensure the autonomy of the factories for several days in the event of a public supply failure.”
Competition from imported flour, which enters Angola at lower prices due to VAT exemption and its lower quality, are also constraints faced by GMA, Kikolo and Leonor Carro.