Angolan government analyses introduction of agricultural insurance

3 February 2015

The government of Angola is analysing the mechanisms needed for introduction of agricultural insurance to minimise the risks of natural phenomena, the Minister for Agriculture and Rural Development said recently in Luanda.

Afonso Pedro Canga, who was speaking at a meeting with 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, said 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 is also intended to boost agricultural activity, thereby preventing imports and providing investment guarantees in the sector, also according to the minister, cited by Angolan daily newspaper Jornal de Angola.

“The insurance gives banks more confidence when providing loans,” said Canga.

In the event of unexpected risks agricultural insurance guarantees small, medium and large producers recovery of what they have lost, said Canga, who recalled that despite the agricultural sector experiencing significant growth, production was still not enough to meet market needs.

At a time when the country is facing a crisis of low oil prices, whilst driving the diversification of the economy, agriculture plays an important role and may be the second main source of income in the country, provided there is a focus on quality and increased production and productivity, he said. (macauhub/AO)