Framework For The Sustainable Development of African Savannah: The Case of Angola

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Food and Agriculture Organization of the United Nations Technical Assistance Department (TC) Policy Assistance and Resources Mobilization Division (TCA) Agriculture Policy Support Services (TCAS)
Framework for the Sustainable Development of African Savannah: The Case of Angola
(Final Report)
By Jose Rente Nascimento Senior International Consultant
Brasilia Brazil November / 2009
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Disclaimer: The conclusions and recommendations presented here are those of the author and do not represent the official policy of the Food and Agriculture Organization of the United Nations or the Government of Angola.
2009 Food and Agriculture Organization of the United Nations Viale delle Terme di Caracalla 00153 Rome, Italy
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PRESENTATION
FAO-TCAS
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Contents Presentation ............................................................................................................iii List of Annexes ...................................................................................................... v List of Tables........................................................................................................... v List of Boxes ........................................................................................................... v List of Figures ......................................................................................................... v Abbreviations and Acronyms ................................................................................. vi Executive Summary............................................................................................... vii I. Introduction ...................................................................................................... 1 II. Lessons from the Brazilian Savannah Development........................................ 3 III. Angolas Business Climate for the Sustainable Development of the Agriculture and Rural Sectors ........................................................................................ 9 A. Angolas Challenging Conditions for Successful Investments ............. 9 B. Agriculture and Rural Business Climate Model .................................. 12 i. Supra sectorial Factors ............................................................... 12 ii. Inter Sectorial Factors ................................................................. 13 iii. Intra Sectorial Factors ................................................................. 14 IV. Framework for the Sustainable Development of Angolas Savannah .......... 19 A. Overall strategy .................................................................................... 19 B. Improving Business Climate Critical Factors ...................................... 20 i. Off-site Strategic Economic Infrastructure ................................... 21 ii. Access to Land Resources ............................................................ 22 iii. Biodiversity Preservation Strategy ............................................... 22 iv. Reconciling Agricultural and Forest Uses ..................................... 23 v. Adoption of ARDEZ Regulatory and Institutional Framework .... 24 vi. Technology Adaptation and Adoption Strategy ........................... 26 C. Short Run Strategy: Agriculture and Rural Development Economic Zones .................................................................................................... 26 i. Governance of the ARDEZ ........................................................... 28 ii. Zones' Selection ............................................................................ 30 iii. Role of Private Investors ............................................................... 30 iv. Outside participants ...................................................................... 33 V. Conclusions and Recommendations ......................................................... 34 VI. References ................................................................................................. 38 VII. Annexes .................................................................................................... 41
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List of Annexes Annex 1 Annex 2 Annex 3 Annex 4 Annex 5 Annex 6 Annex 7 Annex 8 Annex 9 Annex 10 Annex 11 Maps and Basic Information about the Brazilian Savannas. ......... 42 Maps and Basic Information about Africa. ................................... 46 Maps and Basic Information about Angola. ................................. 52 Angolas Rural Sector Background. ............................................. 66 Economic and Social Data and Indicators for Angola. ................. 70 Potential Equivalent Arable Land and Forest Vocation Land estimations for Selected Sub-Sahara African Countries. .............. 78 Terms of Reference Cerrados agricultural development. ............ 79 Technological Packages from Cerrado to Savannah. Workshops . 81 Glossary. ...................................................................................... 116 Promotion of Sustainable Biofuel Development Programme in Angola - PROBIOS. .................................................................... 118 Presentation. Agriculture and Rural Development Economic Zones: Framework for Rapid Development of Angolas Savannah. ............
List of Tables Table 1 Table 2 Table 3 Table 4 List of Boxes Box 1 Box 2 Box 3 List of Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Factors Affecting Agriculture Competitiveness in African Countries 3 Factors That Contributed to the Agriculture Based Development of the Brazilian Savannah. ........................................................................... 5 Factors Influencing the Attractiveness of Direct Investments in Agriculture and Forest Businesses.................................................... 12 Overview of the proposed two part framework to promote agriculture and forest based development in Angola. .................................... 20 Relationships between the ARDEZ and the rest of the country and abroad. .............................................................................................. 27 Principal Actors, and their Roles and Relationships. Agriculture and Rural Development Economic Zones Governance Model. ............. 32 Angola Land Tenure Issues. ............................................................ 16 Land Concessions. ............................................................................ 18 Some Lessons Learned for Special Economic Zones. ................. 25 Main technologies and actions for the Brazilian Savannahs that are applicable or adjustable to farming patterns in African countries.. .... 8 Angolas Performance in Selected Indexes. ..................................... 11 Brief Description of the INTER Sectorial Factors. ...................... 14 Brief Description of the INTRA Sectorial Factors. .......................... 15
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Abbreviations and acronyms

AfDB AfDF ANIP ARA ARDEZ ATC BDA CPI ECP ENSAN EMBRAPA EU FAO FCA GoA FDI FIAS FVL HDI IAA IBRD IDA IFAD IFC ILO LICUS MIGA MINADER MINAGRI nFVL OECD PASAN UNCTAD UNDP WB WEF WEPZA African Development Bank African Development Fund National Private Investment Agency Autonomous Regulatory Agency Agriculture and Rural Development Economic Zone Agriculture Training Center National Development Bank of Angola Corruptions Perception Index Estrategia de Combate a Pobreza (Poverty Combat Strategy) Estratgia Nacional de Segurana Alimentar e Nutricional (National Food and nutrition Security Strategy) Brazilian Agricultural Research Corporation European Union United Nations Food and Agriculture Organization Faculty of Agricultural Sciences, University Agostinho Neto Government of Angola Foreign Direct Investment Foreign Investment Advisory Service Forest Vocation Land Human Development Index Institute for Agronomic Investigation International Bank for Reconstruction and Development. Also WB Institute for Agrarian Development International Fund for Agriculture Development International Finance Corporation International Labor Organization Low Income Country Under Stress Multilateral Investment Guarantee Agency Ministry of Agriculture and Rural Development Ministry of Agriculture Non forest Vocation Land Organization for Economic Co-operation and Development Plano de Aco de Segurana Alimentar e Nutrio (Food and Nutrition Security Action Plan) United Nations Conference on Trade and Development United Nations Development Program The World Bank. Also IBRD. World Economic Forum World Economic Processing Zones Association
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Executive Summary i. African Savannahs have substantial land resources that could be used for the production of food and fiber and a major source for the prosperity for the countries where they are located. This document studied the case of Angolas Savannahs and proposes a framework to promote the sustainable development of the country so as to take full advantage of its Savannahs potential. ii. Angola counts with important agroecological resources in its Savannahs that could serve as the basis for reducing poverty and vulnerability, bringing prosperity, and improving welfare in rural areas and the country as whole. iii. The agriculture and rural development of Savannah areas could improve food and nutritional security of Angola by introducing more productive technologies that would increase food and fuelwood supplies leading to local physical availability and lower prices, and increase labor income in rural areas. The increase in supplies and rural income would increase also the populations economic access to food and fuelwood. iv. It is hoped that the detailed discussion of the Angola case will provide insights and approaches that other African countries with Savannah areas could also apply them in their pursuit of the development based on these resources. v. There exist a body of agronomical knowledge and technology developed for the Savannah region of Brazil (Known locally as Cerrado) that could be adapted and adopted for the Savannah regions of Angola. vi. The Cerrado agriculture development in Brazil also demonstrates the importance of an appropriate business climate that allow for more profitable investments in agriculture and forest based production. vii. Angolas business climate for investments is among the most challenging in the world, leading to few opportunities for competitive investments to prosper. However, most of the unfavorable factors affecting the business climate for agriculture and forest based businesses in Angola are man made, and therefore, it is possible to change them for the better. viii. To promote the sustainable development of Angolas Savannah and take advantage of its full potential, it is recommended the adoption of a two-fold strategy. Both parts of the strategy seek to improve the profitability of agriculture and forest based businesses. The potential for substantial profitability leads entrepreneurs to an increased level of investments, which in turn can result in positive economic, social, and environmental impacts. ix. The first part of the strategy seeks the general improvement of the business climate. It is designed to address some well know but critical factors that serve as one of the bases for the successful implementation of the second part of the strategy. This country wide
- viii part of the strategy also is intended to initiate an often slower but hopefully continuous process of successive interventions to improve business climate. x. The second part of the strategy involves the creation and operation of Agriculture and Rural Development Economic Zones. This part of the strategy requires the establishment of a regulatory and legal framework that allows the creation of ARDEZs, their effective operation, and the provision of complementary services on a competitive basis. These privileged conditions will give investors an excellent business climate by decreasing substantially their costs as compared to what businesses face elsewhere in the country, increasing their revenues, and reducing risks and uncertainty. xi. The greater profitability expected for those agriculture and forest based businesses operating inside ARDEZs can make Angolas production from these areas more competitive on a local, regional, and likely international basis in a relative short time period. The effective creation of favorable business conditions is likely to attract domestic and foreign investment. xii. The expected success of ARDEZs in bringing about agriculture and forest based investments on a sustainable basis to selected areas of rural Angola will also demonstrate the virtues of the policies and measures taken. An evaluation of this expected success might indicate the wisdom of extending similar conditions to the rest of the country so that all may benefit from the improved business climate. xiii. Over time, the strategy promotes the convergence of the conditions found in the rest of the country into the favorable business climate found inside the Zones. xiv. The framework proposed could be financed and technically supported by multilateral agencies like FAO, ILO, the World Bank (including MIGA and FIAS); The African Development Bank; and bilateral donors, international NGOs, and consulting firms. xv. The study also presents recommendations for the design and financing of projects to support the implementation of the framework for the sustainable development of Angolas Savannah.
I - INTRODUCTION 1 Angola has substantial arable lands in its Savannah areas with similar agroecological conditions to those found in Brazils Savannah (Cerrado1. See Annexes 1, 2, and 3). It also counts with important forest vocation lands, those that due to their soil, topography and rainfall pattern require soil and water conservation measures to be used sustainably for short term agriculture crops, or a protective forest cover. Savannahs are very similar ecologically to the Cerrado for which substantial amount of agricultural knowledge and technology has been developed over the past decades. The adaptation of such technologies to the Savannah conditions and their adoption by producers hold a tremendous promise to transform these African lands in a major food, energy, and fiber producing region as they did in the Cerrado region. The agriculture and rural development of Savannah areas could improve food and nutritional security of Angola by introducing more productive technologies that would increase food and fuelwood supplies leading to local physical availability and lower prices, and increase labor income in rural areas. The increase in supplies and rural income would increase also the populations economic access to food and fuelwood. Land resources availability and the existence technologies are must conditions but they are not sufficient to fulfill the promises of abundant agriculture and forest production in the Savannah. Several other factors influence the success of land production and need to be present if such success is to have a reasonable chance to happen. The need for such additional factors become clearer as one considers the role of private sector in bringing about such promise. The success of business initiatives depend on several factors, many of which are internal to the firms. Those conditions are usually under the control of managers and success or failure of their operations depends on their capabilities and decisions. Although such internal performance is indispensable, it is by no means sufficient for the success of firms. Entrepreneurs also operate within an external system that offers varying degrees of conditions that favor and facilitate their activities, or not. Individual firms cannot usually control those external factors such as the rules of the game (laws, regulations, tax burden, and their enforcement), input and output markets, or others that directly affect their costs, revenues, and profitability. Firms success therefore will increase with the improvement of business climate that a given country can offer to investors. Successful agriculture and forest businesses depend on natural resources, human resources, capital and favorable climate for investments. Although Angola counts with abundant natural resources such as soil, topography, and climate,
Cerrados is the general local terminology for savannahs in Brazilian Portuguese. From here forth, the terms Cerrado, Brazilian Cerrado, or Brazilian Savannah will be used interchangeably.
2 which are the only resources that cannot easily be created or hired, it does not offers the other conditions for the success of businesses as will be further discussed in Section III. Agriculture and forest based businesses, therefore, cannot prosper and are unlikely to generate the benefits to society that they otherwise could. 8 This study seeks to develop a framework that can help Angola, as an important example for other Savannah countries and for the sake of contributing to improve the welfare of its population; to transform the promise of the potential of these lands into the reality of highly competitive and abundant food, energy and fiber production (see Annex 7). For that, Section II of the study reviews the accumulated knowledge about the Cerrado development experience of Brazil so as to learn the lessons that could eventually be applied to Angola; it surveys various economic, social, and business climate related indexes to have an overview of Angolas performance and identify important issues to be considered in the development of proposals; and it defines a rural development business climate model that can identify critical factors affecting the success of agriculture and forest based investments. Finally, the paper proposes a two fold framework with strategic measures for the sustainable development of Angolas Savannahs. The first part of the framework concentrates on immediate measures that help to improve critical factors that form the business climate in the country and to establish the basic conditions for the adoption of the second part of the framework. The second part of the framework presents a short run strategy that will accelerate the agriculture, forestry, and rural development of the selected regions of Angolas Savannahs by proposing the creation and implementation of Agriculture and Rural Development Economic Zones (ARDEZ). These zones can have within them a separate and much more favorable set of factors that form an attractive business climate for foreign and domestic direct investments. The ARDEZ not only bypass the limitations found elsewhere in the country but, most importantly, can serve as a pilot that demonstrate the merits of improved investments conditions for private sector led sustainable rural development. The lessons learned from the implementation of the Zones can, therefore, facilitate the adoption of interventions to progressively improve the business climate elsewhere in the country. Over time, this incremental improvement in business climate can approximate the conditions found by investors outside the ARDEZ to those found within the zones. The more favorable conditions for investments in the country would allow agriculture and forest based businesses to make substantial contributions to the welfare and prosperity of Angolas population, and serve as an example to be followed by other African country with Savannah resources.
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II - LESSONS FROM THE BRAZILIAN SAVANNAH DEVELOPMENT. 13 Several studies have been undertaken in recent years to describe the process of agriculture based development of the Brazilian Savannahs. Among other objectives, they seek to identify lessons that African countries with Savannah lands could use to promote similar type of development. Here, two of those studies found to be most useful for the purposes of the present study are reviewed. The lessons learned from the Cerrado development process can also serve as a solid basis on which South-South cooperation can be used to accelerate the development of Angolas Savannah and thereby bring food security and prosperity. The first study recently published by FAO and the World Bank in the form of a book2 can be summarized by the model presented as figure 01. This model was prepared by the authors of the book considering the review made of the agriculture based development that happened in the Cerrado of Brazil and Northeast Thailand. In these cases, a series of factor that affect the domestic production cost in African countries with Savannah lands were identified; and the impacts of domestic, export, and import logistic costs on the competitiveness of agriculture products in the domestic, regional and global markets.
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Inside Country Domestic logistics costs Export logistics costs + + + Import logistics costs
African Ag international + - competitiveness -
Altenative non farm jobs
Product domestic cost + African Ag domestic competitiveness Farm level + Domestic production market cost + share + + input purchase + -
Regional logistics costs African Ag Regional competitiveness +
+ Global market share -
Regional market share
+ + product + import cost International product price + international production cost
+ Labor Productivity cost + + Labor productivity + Training
soil nutrition mining
+ + Adapted technology Input price
sustainability
Intervention leverage point
Source: Prepared by the author based on The World Bank, 2009.
Figure 01 Factors Affecting Agriculture Competitiveness in African Countries

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World Bank, 2009. Awakening Africa's Sleeping Giant: Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond. Washington, DC: FAO and The World Bank.
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Farm level production costs in Africa are affected by the use and cost of purchased inputs, labor costs, and the productivity of the land resulting from the use of technology. Labor productivity also is affected by the workers capacity of applying more efficient technologies which can be improved by training. High domestic logistics costs to bring agriculture products to domestic urban markets increase the price of such products. These higher prices for domestic production often reduce its competitiveness when compared to imported products leaving the domestic producers with a smaller share of this market. For some products, however, domestic production costs plus domestic and regional logistics costs may still be small enough to compete successfully and take share of regional markets. The book clearly establishes the importance of the adaptation and adoption of highly productive technologies which often requires competitively priced inputs and labour. It also stresses the importance of training to improve the productivity of labour. The authors, however, show the impact of the costs of logistics (domestic, regional, for imports and for exports) in the competitiveness of African agriculture products and the shares that they can have of the domestic, regional, and global markets. The authors clearly showed the importance of intervening on leverage factors such as the adoption of technology, the training of labour, and the reduction of logistic costs. The study by Tollini3, on the other hand, concentrated in explaining the factors that resulted in the impressive growth of agriculture production in the Cerrado region of Brazil. His explanation, summarized in Figure 2, helps to identify key issues and intervention strategies that were instrumental to the transformation of the region. Tollinis analysis of the factors that contributed to the agriculture based development of the Brazilian Cerrados classified them into two basic groups: those that affected the supply of agriculture products, and those involved with the demand. He described the real and potential impact of the growing demand for these products on price formation and inflation pressures. He showed that government authorities were motivated by the need to control inflation in Brazil to act.
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Besides the growth of foreign demand under an increasingly open economy and export favorable exchange rate, agriculture prices in Brazil were being pressured by a growing domestic demand resulting from population growth, especially in urban areas. Urban immigration also reduced the supply of labour in rural areas for agriculture production. Income growth contributed as well to the increase in demand as poorer members of society become more able to buy food and other
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Tollini, Helio. SD. Integrating Brazilian Savannahs to the Production Process: Lessons Learned. NP: NA.
Export favorable exchange rate Open trade policy Consumers' Welfare + + +
Price of imported inputs -
Stock of foreign exhance Inflation + + Price and marketing regulating policies + Ag products export + Ag products supply + Agr production + + + Agr bus profitability + Labor Labor productivity + -
Energy
+ Communications Infrastructure + Roads +
Agr Prod export opportunities + Agr products + demand + + + Agr products + prices
Storage
Demand Side
Arable land stock
Income growth
Urbanization + Population size
Rural population -
Acreage under production + -
+ + Arable land supply (Legal & logistical Accessiblility) + Land price Supply Side Land market improvement Private banks Publics banks -
Agr Production + cost + + Entrepreneurship + Services capacity + providers Land productivity + + Adapted + Research capacity technology + + + Extension + + Training
financing cost -
Input providers + technology stock
Figure 02: Factors That Contributed to the Agriculture Based Development of the Brazilian Savannah. Prepared and complemented by the author considering Tollini, SD.
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goods and services. These demand pressures indicated to producers that agriculture prices would remain attractive over time generating an important incentive for production. Government understood that the control of inflationary pressures from agriculture products could be addressed by greater growth in the supply of those products. Such an increase also could result in the generation of jobs, income, foreign exchange, and the reduction of poverty, therefore, providing an important contribution to the development of the nation. Although not explicitly discussed by Tollini, it is clear that the authorities understood the critical role of the private sector and the importance of improving or maintaining the profitability of agriculture based entrepreneurs and investors as the basic strategy to achieve the growth in supply. Government actions were mainly designed to reduce cost and risks for producer and other related entrepreneurs as well as to increase factors productivity so that they would not need to rely on high prices to make their businesses profitable and investing in this sector attractive. Among the actions4 taken that supported this business climate improving strategy, Tollini highlighted: i. Investments to improve economic infrastructure in the areas of transportation, energy, and communications;
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ii. Measures that improved the works of the land market, assuring the increased availability of securely titled and accessible lands at a reasonable price; iii. The mobilization of public and private banks in the financing of agriculture production at reasonable costs; iv. Increased and sustained investments in research and development so as to generate new technologies that could overcome the agronomical limitations of the Cerrado soils and increase productivity. Although these technologies might have raised costs of production, producers would be more than compensated by the increase in output; v. Creation of business opportunities for service providers to help in the several operations direct or indirectly associated with agriculture production;
vi. Mobilization of southern agriculture producers (gauchos5) to bring to the Cerrados their production skills , knowledge, entrepreneurship, and capital; and
The supply box in Figure 02 includes variables and factors normally associated with the rural or agriculture branches of government responsibility at the time. Several other extra sectorial policy instruments were also used by the government in a mostly coordinated effort. 5 Gauchos are the decedents of early Europeans that migrated to Southern Brazil t the end of 1800s and early 1900s. They have been key for the development of Brazilian Cerrados. In the case of Angola, these kinds of entrepreneurs should be formed in Angola or, to accelerate the development, could come from other countries.
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7 vii. Measures to support the training and education of labor and professionals to contribute to increase productivity. 26 It must be reminded that the more favorable business climate measures were taken in varied degrees and sequencing that were contingent to the situation found in the region and the country. The results of these interventions were not immediate nor always in the right direction. Different government administrations, with the active motivation provided by stakeholders, withstood the general course during more than 4 decades. The improvement of competitiveness requires continuous and incremental efforts to give investors the incentives to make life changing decisions and take risks. The following chapter tries to take advantage of the lessons leaned in these two studies and other sources to design a model that can help in the understanding of the business climate for agriculture and forest based investments and how it can be improved. These elements will be useful for the development a framework that can help Angola to increase prosperity of the country by becoming a major and competitive producer and exported of these products using its vast Savannah lands. Another class of lessons that comes from the development of the Brazilian Cerrado that can be useful for the African Savannahs is related to the technologies and production packages that have been developed over the years for that region and that are available for adaptation and adoption. Table 1 summarizes, according to Spehar, ND., the main technologies and actions for the Brazilian Savannahs that he believes are applicable or adjustable to farming patterns in African countries.
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Farming Pattern Technology/Action

Natural Resource Survey and Utilization Climate Understanding and Monitoring Native Species Study and Cultivation Soil Amendment and Fertilisation for Efficient Cropping Soil and Plant Management in No-Till System Arbuscular Mycorrhizal Fungi for P Efficiency Rhizobium Strains for Leguminous Crops High Performance, Disease Resistant Oil Crops High Yielding, Pest-Disease Resistant Energetic Crops High Performance Maize, Rice, Sorghum, Millets High Performance Irrigated Wheat and Barley Adapted Quinoa, Amaranth and Other Novel Crops High Yielding and Quality Coffee High Yielding Mango Acerola, Sour Sop, Citrus Adapted Eucalyptus, Pinus and Other Forest Species Adapted Rubber Tree for Efficient Cropping High Performance Horticultural Crops Grass and Leguminous Forage Species Selection Degraded Areas Recovery Crop-Livestock Integrated Systems Low-cost Food Supplement for Cattle Improved Beef and Milk Livestock Production Irrigated Systems Integrated Pest and Disease Management Technology Validation and Availability to Farmers Seed Production and Technological Promotion Family Farming Training and Technology Adjustment Technology Transfer Methods for Development X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
Family
X X X X X X X X X X
Emerging
X X
Large Scale
X X
X X X X X X X X X X X X
X X X X X
Source: Spehar. ND. Table 1: Main technologies and actions for the Brazilian Savannahs that are applicable or adjustable to farming patterns in African countries.
III - ANGOLAS BUSINESS CLIMATE FOR THE SUSTAINABLE DEVELOPMENT OF THE AGRICULTURE AND RURAL SECTORS 1 Successful agriculture and forest businesses depend on natural resources, productive human resources, competitively priced capital and inputs, and other favorable climate conditions for investments. Without such conditions, investments become too costly and risky while benefits too small and uncertain so that profits are not sufficient to motive entrepreneurs and investors to act. Although Angola counts with abundant natural resources such as soil, topography, and climate, which are the only resources that cannot easily be created or hired anywhere, it does not offers other needed conditions to investors (see Annex 3). Agriculture and forest based businesses, therefore, cannot prosper and cannot generate the benefits to society that they could. Angolas conditions for the success of businesses are among the most challenging found anywhere in the world resulting in a small contribution of the private sector to economic prosperity in the country. Entrepreneurs face high cost and risks for the creation, operation, and even exit from business initiatives making profitability so small that this major motivator for private sector investments is found in only a few occasions. In an increasingly globalized economy where entrepreneurs have to compete with one another regardless of where they are located, to operate a business in Angola represents a handicap that few can successfully overcome. Consequently, investors do not invest, jobs are not created, income is not distributed, foreign exchange is not earned or saved, and welfare of the population does not improve as fast much as it needs to. This chapter of the study will first discuss the performance of Angola in various indexes measured by different organizations that seek to compare the conditions that entrepreneurs face in different countries to invest successfully. These indexes show the great challenges businesses in Angola have to face to succeed which allow too few of them to survive let alone prosper. The second part of the chapter discusses a model that tries to identify the factors and relationships that affect the success of businesses in agriculture, forestry, and rural sector, which are critical for development in rural areas. To take advantage of the substantial natural resources that Angola has and allow them to become a source of prosperity, the country needs to understand such factors. That understanding would also allow them to identify the critical intervention leverage points to improve the conditions that facilitate the profitable and sustainable operation of private businesses. The model presents a framework that helps in the development of strategies and the identification of measures to improve such conditions. Angolas Challenging Conditions for Successful Investments The success of business initiatives depends on several factors, many of which are internal to the firms while others are external. Those internal conditions are usually under the control of managers and success or failure of their operations
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10 depends on their capabilities and decisions. Although such capability is necessary, it is by no means sufficient for the successful operations of a firm. Managers also have to operate within an external environment which may favor or hinder their chances of success. Individual firms cannot usually control the rules of the game (laws, regulations, and their enforcement), input and output markets, nor other external conditions that affect their costs, revenues, and profitability.
Index Name Angolas score and rank.
of Rank: 169 out of 183.
Brief description
Ease Doing Business Ranking
Global Competitiven ess Report
Rank: 125 out of 134
Human Development Index
Rank: 162 out of 177.
Index of Economic Freedom
Score: 47 out of 100. Rank: 162 out of 179.
The Ease of Doing Business Ranking is reported yearly by The World Bank, a financial assistant to developing countries. The Doing Business Ranking provides measures of business regulations and their enforcement across countries by measuring specific regulatory obstacles to doing business, such as protection of investors, protection of property rights, employment issues, and contract enforcement capabilities. The highest ranked country has the most favorable environment for conducting business in the world. Data collected in 2009. Source: The World Bank. http://www.doingbusiness.org/ExploreEconomies/?economyid=7 The Global Competitiveness Report is compiled yearly by the World Economic Forum, an independent international organization based in Geneva, Switzerland. The rankings provide a description of the economic competitiveness based on twelve pillars of competitiveness for countries at all stages of development. Some of the factors included come from publicly available data, but the majority comes from a survey the World Economic Forum sends to over 11,000 business executives worldwide. The highest ranked countries are the most competitive. Data collected in 2007. Angola has not been evaluated since then. Source: http://www.weforum.org/pdf/GCR09/GCR20092010fullreport.pdf The Human Development Index (HDI) which looks beyond GDP to a broader definition of well-being. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and enrolment at the primary, secondary and tertiary level) and having a decent standard of living (measured by purchasing power parity, PPP, income). The index is not in any sense a comprehensive measure of human development. It does not, for example, include important indicators such as gender or income inequality and more difficult to measure indicators like respect for human rights and political freedoms. What it does provide is a broadened prism for viewing human progress and the complex relationship between income and well-being. Data: 2007/8. Source: UNDP. http://hdrstats.undp.org/en/countries/country_fact_sheets/cty_fs_AGO.html The Index of Economic Freedom is reported annually by the Heritage Foundation, a research and educational institute. The Index of Economic Freedom analyzes a wide range of issues including trade barriers, corruption, government expenditures, property rights, and tax rates to generate an overall ranking of economic freedom. The highest ranked country is the country with the least number of restrictions and constraints on businesses. Data collected in 2009. Source: http://www.heritage.org/Index/Ranking.aspx The index published in Economic Freedom of the World measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property. Forty-two variables are used to construct a summary index and to measure the degree of economic freedom in five broad areas: (1) size of government; (2) legal structure and security of property rights; (3) access to sound money; (4) freedom to trade internationally; and (5) regulation of credit, labor and business. Data collected in 2006 Source: Fraser Institute. http://www.fraserinstitute.org/Commerce.Web/product_files/EconomicFreedomoftheWorld2008Ch3.pdf The Corruptions Perception Index (CPI) is reported annually by Transparency International, an international civil society organization. The CPI ranks countries in terms of the degree to which corruption exists in the misuse of public power for private benefit among public officials and politicians. CPI is a composite index determined by expert assessments and opinion surveys. The highest ranked country is the country with the least amount of perceived corruption. Index units, 10=least corrupt, 0=most corrupt. Data collected in 2008. Source: http://www.transparency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table
Economic Freedom of the World
Score: 4.1 out of 10 Rank: 140 out of 141
Corruptions Perception Index (CPI)
Score; 1.9 out of 10. Rank: 158 out of 180 countries studied.
Table 2: Angolas Performance in Selected Indexes. 7 Table 2 summarizes the performance of Angola in selected indexes created to compare several countries in terms of indicators that affect businesses. These indexes show not only the scores that try to quantify the performance of a country. It also ranks these scores to show the relative performance of a country in relation to its peers. In a world where countries have to increasingly compete with each other, the ranking of countries and how these relative performances vary in time, become critical for investors decision making. Countries have not
11 only to perform well in a given year. They also need to improve over time the conditions they offer more than other countries with which they compete for investments. This healthy competition leads to a positive feedback cycle that should benefit investors and society as a whole. 8 The indexes shown in Table 2 illustrate the difficulties investors in most sectors face in Angola. Even though some of these indexes may have an overlap among some variables or factors considered, they do provide a useful indication of the absolute and relative performance of countries. Sadly, in all of them, Angola reaches low scores and ranks among the countries that face the most challenges in the specific conditions measured. Under such difficult contingencies, businesses are unlikely to prosper. This performance also demonstrates that the private sector faces severe challenges to contribute to the development of the country. It is beyond the purpose and scope of this study to analyze the results of such indexes. It suffices here, that they clearly show the challenges faced by investors to profitably operate in Angola and the critical need for the adoption of strategic measures to improve the business climate of the country. Agriculture and forest businesses in rural areas are also affected by many of the conditions that these indexes try to measure (see also Annexes 4 and 5). However, due to their special characteristics, it is more useful to try to identify the principal factors that influence businesses in this sector, the relationships among them, and how they impact investment profitability. This modeling helps not only to understand the situations better, but also is critical for the design of actions that can improve the chances for entrepreneurs success. These are the goals of the next section of the chapter. The model discussed here is helpful to understand the current situation of a country, how its performance compare with others, what its potential performance could be if all factors could be made to reach their maximum scores, and how to identify priority areas and actions to create an action plans to improve such business climate. To design these plans, however, it is necessary to undertake a detailed and periodic planning process that will systematically identify the priority factors, analyze their current and potential situations, and design interventions to move the future expected situation towards a desired future or vision for the sector. It is beyond the scope of this study to calculate the score Angola can obtain in the corresponding indicators. It is, however, strongly recommendable that such calculation be undertaken periodically not only for Angola, but also for other Sub Sahara African countries. Besides its use in the design, monitoring and evaluation of interventions, this periodic calculation would allow several types of comparisons among countries, promote healthy competition among them, and help investors select the best countries to establish their agriculture and forest businesses. Nevertheless, the present discussion and that of other chapters of this study does provide sufficient information for the preparation of a framework that includes the design of interventions to improve the business climate for agriculture,
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12 forest, and rural investments in Angola. This is the purpose of the last chapter of the present study. B. AGRICULTURE AND RURAL BUSINESS CLIMATE MODEL 14 A model has been developed to better understand and serve as the basis to improve the conditions for successful investing in agriculture and forest based sustainable businesses. It assumes that a country will be more attractive for agriculture and forest based sustainable business investments, the more profitable such investments are likely to be. The profitability of these businesses in a country depends on the costs investors have to face and the expected benefits from their operations. The model shown on figure 3, proposes that costs investors have to face and the expected benefits from their operations are affected by three groups of factors: the SUPRA Sectorial, the INTER Sectorial, and the INTRA Sectorial factors. Combined, the SUPRA and the INTER sectorial factors are also called EXTRA sectorial conditions since they are variables that are not considered as part of the agriculture or forest based sector. The following sections will discuss briefly the principal factors that makeup each of these three groups.
Agr-for investment atractiveness + Exchange rate stability Interest rates Tax burden Free trade Political risk + + Favorable SUPRA sectorial factors Adverse actions + + + Benefit reducing actions + Agr-for investment profitability + + + Favorable INTRA sectorial factors + Available agr-for vocation lands Favorable supports Cost reducing supports Benefit increasing supports Cost increasing actions Agr-for prod domestic market Agr-for productivity
15
GDP growth
+ + +
Favorable INTER sectorial factors --
Ecoonomic infrastructure
Credit accessibility
Enviromental restrictions
Labour Rule of law
Social infrastruture
Licences and permits
Capital treatment
Figure 3: Factors Influencing the Attractiveness of Direct Investments in Agriculture and Forest Businesses. Modified from Nascimento & Tomaselli, 2005. i 16 SUPRA Sectorial Factors
SUPRA sectorial factors influence the performance of firms in all sector of the economy, including the agriculture, forestry, and rural based ones. They include
13 macro economic conditions and political risk. There are six main factor in the SUPRA sectorial group that are found to affect substantially the conditions for the success of agriculture or forest based businesses: 1- Gross Domestic Product growth; 2- Exchange rate stability; 3- Interest rate; 4- Tax burden; 5- Free trade; and 6- Political risk. 17 There are two hypotheses relating these factors and how they affect the profitability of agriculture or forest based business. The first indicates that, as the factor increases (decreases), then the profitability is also expected to increase (decrease); that is, they move in the same direction. This is represented in figure 3 by a blue arrow with a positive (+) sign at the point of the arrow. Therefore, the model states that profitability is expected to increase the faster GDP grows, the Exchange rate is more stable; and/or the economy is more open allowing for cheaper transaction costs for import and export. On the other hand, profitability is expected to decrease as GDP shrinks, the Exchange rate is more unstable; and/or the economy is more closed allowing for more expensive transaction costs for import and export. The red arrows with a negative sign at their points (-) indicate the second hypothesis. In this case, as the factor increases (decreases), then the profitability is expected to decrease (increase); that is, they move in opposite directions. Therefore, profitability of agriculture or forest based business is expected to increase as Interest rates get smaller, the Tax burden is less expensive; and/or the political risk reduces. On the other hand, profitability is expected to decrease as Interest rates get larger, the Tax burden is greater; and/or the political risk increases. ii 19 INTER Sectorial Factors
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The INTER sectorial factors are those that are managed by other sectors of the economy but which have substantial impacts on the cost and benefit structures of agriculture or forest based businesses. The model identifies eight of these factors: 1- Economic infrastructure; 2- Social infrastructure; 3- Credit accessibility; 4- Licenses and permits; 5- Environmental restrictions; 6- Capital treatment; 7- Labour; and 8- Rule of law. Table 3 provides a summary of explanations of these factors. Here too there are the same two hypotheses relating these INTER sectorial factors and how they affect the profitability of agriculture or forest based businesses. Thus, the blue arrows indicate that, as factors like Economic infrastructure, Social infrastructure, Credit accessibility, favorable Capital treatment; competitively priced and productive Labour; and Rule of law effectiveness increases (decreases), then the profitability is also expected to increase (decrease); that is, profits tend to move in the same direction these factors move. On the other hand, the red arrows indicate that as factor like Environmental restrictions and Licenses and permits (decreases), then the profitability of agriculture or forest based business is expected to decrease (increase); that is, they move in opposite directions.
20
21
14
Factors
1-Economic infrastructure
Brief description
Includes availability of economic infrastructure services at competitive prices and quality such as those provided by roads, communications, energy, ports, railroads, airports. Includes availability of social infrastructure services at competitive prices and quality related to human development such as education; health; water, sewage & waste disposal. Includes the sophistication of financial and capital markets, availability of credit at competitive terms as well as other capital markets instruments. Includes bureaucratic procedures and legal requirements to open, operate, and even close firms and that take much time, efforts, and other resources to comply with. Unfounded or useless environmental restrictions that increase firms costs without generating environmental benefits. Includes barriers and restrictions to the movement of capital into, out of, or within the country. Includes the costs generated by labour legislation, the level of general productivity and the availability of skilled workers at competitive prices. The existence of favorable legislation, enforcement, and justice services. Includes clear definition and protection of property legislation; respect to the letter of contracts, and timely justice at reasonable cost.
2-Social infrastructure
3-Credit accessibility
4-Licenses permits
and
5-Environmental restrictions 6-Capital treatment
7-Labour
8-Rule of law
Table 3: Brief Description of the INTER Sectorial Factors.
iii 22
INTRA Sectorial Factors
The INTRA sectorial factors are those that are managed by public or private actors found inside the agriculture or forest based sector of the economy. These factors, by definition are under the control of these actors and can be intervened more directly by them. The model identifies five of these factors: 1- Agriculture or forest products domestic market; 2- Agriculture and forest productivity; 3availability of agriculture and forest vocation lands; 4- Favorable supports; and 5- Adverse actions. Table 4 provides a summary of explanations of these factors. Except for Adverse Actions, all other INTER sectorial factors move profitability in the same direction as they move. That is, as these factors increase (decrease), then the agriculture and forest based businesses profitability is also expected to increase (decrease).
23
15
Factors
1-Agriculture or forest products domestic market 2-Agriculture and forest productivity 3-Availability of agriculture and forest vocation lands
Brief description
Includes the size of the domestic consumption of inputs and outputs of the agriculture and forest based sector. It also includes the domestic consumption associated with the export of outputs from the sector. Includes the land productivity of agriculture or forest based businesses. It is directly associated with the technologies used for production in the country. Includes the size of lands in the country that are arable, or are forest vocation lands. Agriculture production is often, but not always, more competitive in arable lands than forest production, while the opposite is true for forest vocation lands. (See Nascimento, 2005). Includes policies and measures taken the public or private sectors that reduce costs or increase benefits for investors. Includes policies and measures taken the public or private sectors that increase costs or decreases benefits for investors.
4-Favorable supports
5-Adverse actions
Table 4: Brief Description of the INTRA Sectorial Factors.
24
The bigger the domestic market for agriculture and forest products, including those used as input for export products or directly sold oversees, the more profitable the agriculture and forest businesses can be, ceteris paribus. Conversely, the smaller the domestic market for agriculture and forest products, including those used as input for export products or directly sold oversees the less profitable. However, the size of the domestic market is not easily modified by public policy. It can change only if agriculture or forest products prices times the quantities consumed increase. To consume more implies a change of taste of consumers and/or an increase of income, assuming the products are income elastic. Especially when markets are small and its growth is not expected to be fast, countries have to consider the regional and/or world markets as their targets, and seek to increase export of competitive products. This vision of an agriculture or forest products exporting country requires the adoption of interventions to increase the attractiveness of direct investments in the sector.
16
Box 1: Angola Land Tenure Issues.

With regard to the use and exploitation of land, the law is somewhat inconsistent with a number o f different legal instruments being applied by a number of agencies in different situations and geographical areas. The Land Law passed by the parliament in 1992 (21C/92, regulated by Decree 32/95) stipulates that all land belongs to the state. However, it recognizes the traditional land ownership and exploitation systems that exist in rural areas of the country and stipulate that land in traditional communal areas must be approved only after the recommendation of the local Soba or traditional chief (also known in some places as Regidor). Individuals or associations and related corporate bodies requiring land below 1,000 hectares can obtain authorization of land use and exploitation rights by formally applying for the same from the Soba. The Soba has the responsibility of identifying, demarcating and allocating the land by issuing the recipient with a no-objection certificate. The applicant is then required to present this no-objection certificate from the Soba to the provincial offices o f the Ministry o f Urbanization and Environment who issue provisional land use title. This provisional title is valid for five years after which the title holder will apply for an Intermediate Title that is valid for a further 18 years and which is issued upon verification o f actual use of the land. It is after the expiration of 18 years and upon evidence of proper use that a definitive title for 45 years can be obtained. Land in excess of 1,000 up to 9,999 hectares must be authorized by the Minister of Urbanization and Environment and beyond 10,000 hectares by the Cabinet. The same law makes provision for individuals to buy land from the state, although the process can be very bureaucratic, obscure and expensive in practice. Thus, it is very likely that most of potential project beneficiaries do not possess official title to the land they occupy and use. Most people in rural areas rely on informal arrangements, including an unofficial land market, to obtain land. While the arrangements are not strictly legal, they are usually recognized by communal authorities. Land use rights can be withdrawn by the state in the public interest and in such situations the land reverts to the state. However, the state has the responsibility for paying fair compensation for any losses and improvements. In 2004, a new Land Law (regulated in 2007) which, combined with the Decentralization Law, brought additional institutional ambiguity and complexity to the land regularization process. Cismondi, 2009, identified the following critical issues in need of improvement: overlap of responsibility and conflicting interests between central government agencies and provincial institutions; different land related procedures are found in different provinces; lack of coordination and overlapping responsibilities among central government agencies involved with land issues; there are several competing formal and informal cadastral administrations which need to be simplified and unified in a single system. These and other issues clearly indicate that land tenure is a theme that requires further attention from GoA authorities so as to allow secure and clear access to land resources. Source: World Bank, 2008a. See also Cismondi, 2009.
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Agriculture and forest productivity are critical factors that define the competitiveness of a country. Among other factors, productivity depends on the availability and adoption of appropriate technology; production inputs such as seeds, fertilizers, machinery; skilled labour and professionals; and supporting services. Available agriculture and forest vocation lands (FVL)6 are a critical factor for the attractiveness of a country for sustainable investments in the sector. The
26
Forest Vocation Lands are those that, due to their physical site features such as soil, topography, and the rainfall it receives, should be kept under forest cover or other sustainable land use if soil or water related negative externalities are to be avoided. FVL classification does not depend on the type of cover the land actually has, nor does it depend on the requirements it may have for agriculture crop or forest production.
17 greater the land area a country has that can potentially be used for agriculture or forest production, the greater the contribution of this factor to the INTRA sectorial conditions that favor successful agriculture or forest businesses. However, the physical existence of such lands is not enough. They have to be accessible to investors through secure and relatively flexible mechanisms that allow long term investments to be made as well as easiness of exit if so desired. The current situation of land tenure in Angola and some aspects of how investors could have access to them are briefly discussed in Boxes 1 and 2 below. 27 From the review of the boxes and also of Cismondi, 2009, it becomes clear that Angolas land resources are still not easily accessible to investors, despite improvements in land resources management of recent years. The legal framework also does allow land to be used as collateral for debit financing. The country needs to make a major effort to improve land law; simplify and clarify institutional responsibilities at the national and local levels; define clear land titling, registration and cadastre procedures; establish the rules for agile market transactions involving land resources; count with the human and other institutional resources to ensure the proper institutional operations, and adopt actions to protect property rights of all landowners, including traditional communities. As shown in Annex 6, with nearly 54 million ha, Angola is the second country with the greatest potential equivalent arable land area7 in Sub-Sahara Africa, only loosing to Sudan. These lands represent 43% of its total land area. Angola also has an estimated 70.4 million ha of potential forest vocation lands, which represent 56% of the total area of the country. These lands represent an important resource base if legally made available to investors which, combined with an appropriate business climate, could transform Angola into a major producer and exporter of agriculture and forest products and a source for the sustainable prosperity of society. Favorable supports are divided in two groups: those policies, and actions or inactions by governments that reduce investors costs, and those that increase benefits. These supports are identified usually as a result of detailed analyses of surveys of the perceptions of investors, producers, academics, and other stakeholders. Adverse actions are also divided in two groups: those policies, and actions or inactions by governments that increase investors costs, and those that decrease benefits. However intriguing, governments mostly good intentions not always result in favorable conditions for investors. Using the same methods described for Favorable supports, it is possible to identify such situations which need to be corrected to improve business climate.
28
29
30
Therefore, lands with no forest cover or use can still be classified as FVL if their physical features so indicate; while lands covered with forest may not be FVL. Nascimento, 2005. 7 Potential equivalent arable lands are arable lands weighted by the quality of the soil. See FAO, 2000.
18
Box 2: Land Concessions

According to principles defined under the Constitution, all land is at the outset the property of the state. Furthermore, the state is solely responsible for establishing the conditions under which land can be the subject of a concession, while protecting the countrys national interests and development. It also demands proven capacity from a petitioner to develop land efficiently, as well as the offering of guarantees to the people who originally lived on and cultivated it. Land concessions for use and exploration are granted through official licenses issued by the Ministry of Agriculture & Rural Development (MINAGRI) and the provincial governments concerned. Licenses may be either granted for a limited period (up to 45 years) or be limitless. In the case of foreign investment being made in land forming part of territorial waters and the continental platform or for land being used by the rural population, and areas deemed economically or militarily strategic, approval is required by the Cabinet. Land earmarked for housing, trade, industrial operations, and facilities for social activities do not yet have their own specific legislation. For that reason the disposal of such property must be determined by the Ministry concerned and the respective provincial government on a case-by-case basis. Source: ANIP site http://www.iie-angola-us.org/investment.htm
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IV. FRAMEWORK FOR THE SUSTAINABLE DEVELOPMENT OF ANGOLAS SAVANNAH. A. 1 Overall Framework To promote the sustainable development of Angolas Savannah and take advantage of its full potential, it is recommended the adoption of a two-fold strategy as illustrated in figure 4 below. Both parts of the strategy seek to improve the profitability of agriculture and forest based businesses. The potential for substantial profitability leads entrepreneurs to an increased level of investments, which in turn can result in positive economic, social, and environmental impacts. The first part of the strategy seeks the general improvement of the business climate for sustainable agriculture and forest based investments. It is designed to addresses some well known but critical factors that can serve as the bases for the successful implementation of the second part of the strategy. This country wide part of the strategy also is intended to initiate an often slower but hopefully continuous process of successive interventions to incrementally improve business climate. For that, a set of policies should be formulated and implemented. The second part of the strategy involves the creation and operation of ARDEZ. Special zones in general already exist in Angolas legal framework, but have not been tried out in practice to facilitate agriculture and forest based investments. This part of the strategy requires the establishment of a regulatory and institutional framework that allows the creation of ARDEZs, their effective operations, and the provision of needed complementary services. These privileged conditions will give investors an excellent business climate by decreasing substantially their costs as compared to what businesses face elsewhere in the country, increasing their revenues, and reducing risks and uncertainty. The greater profitability expected for those agriculture and forest based businesses operating inside ARDEZs can make Angolas production from these areas more competitive on a local, regional, and likely international basis in a relative short time period. The effective creation of favorable business conditions is likely to attract domestic and foreign investment. The success of ARDEZs in bringing about agriculture and forest based investments on a sustainable basis to selected areas of Angolas Savannahs will also demonstrate the virtues of the policies and measures taken. An evaluation of this expected success might indicate the wisdom of extending similar conditions to the rest of the country so that all may benefit from the improved business climate. Over time, the strategy promotes the convergence of the conditions found in the rest of the country into the favorable business climate conditions found inside the Zones.
20
Demostration of policy effectiveness Social impact Reduce poverty Income more distributed Jobs Human resources developed Food security increased
PART I - General Business Climate

Biodiversity Preservation Strategy established Improve environmental sustainability Improve Business Climate Critical Factors
Incremental business climate improving measures adopted
M&E of strategy impacts
Agriculture, environment, and forests reconciled Adoption of RDSZ's RegulationsInsititutional framework
Access to land resources
Off-site strategic economic infrastructure Technology adoption strategy Ag/For business opportunities
Economic impact Availabilty of goods & services increased Exports diversified & increased Imports reduced
Price stability increased Foreign exchange increased
General Economic Zones Law published Autonomous Regulatory Agency established and operating
Supervision & auditing operating

Investments undertaken
Development more sustainable
Enviromental impact Enviromental quality improved
RDSZ operational regulations published
2-3 RDSZ identified and Zone managers selected
PART II - Agriculture and Rural Development Economic Zones
Figure 4: Overview of the proposed two part framework to promote agriculture and forest based development in Angola. 5 The following sections briefly discuss each of the strategy part in further details.
B. IMPROVING BUSINESS CLIMATE CRITICAL FACTORS 6 Part I of the strategy includes two types of measures. Type 1 (shown in red letters in figure 4) includes those measures that are needed to establish the legal and institutional conditions necessary and sufficient to create, promote, administer, operate, monitor and evaluate the zones. This first type is detailed in the next section which allows further understanding of its importance and links. The second type of measures (shown in blue letters in figure 4) to be taken in Part I of the strategy includes a series of actions and investments that will attack factors influencing the business climate in general but which are critical to the well functioning of the zones. They include the need to ensure access to secured land resources where the zones will be physically created; a well developed and implemented biodiversity conservation strategy; the adoption of policies that will reconcile and reduce potential conflicts between agriculture and forest land uses; and the creation or improvement of economic infrastructure needed outside the zones. The first three action classes are designed to improve the environmental feasibility of investments and prevent the risk of biodiversity losses and undesirable deforestation. The last class of actions, economic infrastructure investments, is needed to reduce cost and risks to investor with uncompetitive priced public services either because of their inexistence, poor quality, or unreliability. The following sections discuss these measures in more detail.
21 i. 8 Off-site Strategic Economic Infrastructure
Economic infrastructure services are an unavoidable cost for most agriculture or forest based businesses. When they are too expensive they can reduce profitability to the point that investments are not feasible. Investors are not going to create and operate businesses successfully if economic infrastructure is not available at competitive prices, in good quality, and reliable. It is, therefore, critical that entrepreneurs can count with such services not only inside the Zones but also to get to them or to support them. There are two types of infrastructure associated with the operations of Zones: on-site, and off-site. On-site infrastructure refers to that which is needed inside the Zones for them to function properly. This type will be further discussed when the second part of the strategy, that associated directly with the establishment and operation of the ARDEZs, is discussed below. Off-site economic infrastructure is the one that is needed outside of the Zones for them to operate competitively. Entrepreneurs need transportation infrastructure at competitive cost to access the Zones, such as airports, ports, roads, and railroads. Likewise, they will also need communication services, such as fixed line telephones, cellular phone, and the Internet. Although technology has reduced in some cases the need for substantial investments to provide some of these services, their provision at competitive prices would likely require investments outside of the zones themselves. Another important service that usually represents a substantial portion of the cost composition of businesses is energy. Electricity, vehicular fuels, vapor producing and grain drying fuels such as fuelwood, and others are needed in the zones at competitive prices. Some of them are easily transport there; others can be produced inside the zones, while still others might need investments outside the zone. This last case would be, for instance, electricity from hydropower stations and transmission lines. The specific energy matrix solution for each zone would depend on the needs of the businesses and on the availability of infrastructure in existence or to be created. Other types of economic infrastructure that may require investments outside the zones are potable water, and sewage and waste disposal. The provision of such services are themselves potential opportunities for investors. However, being outside the zones, they would be facing the adverse business climate that affect investments from the private sector and which led to the development of the special economic zones strategy in the first place. The best solution for the provision of these services may require then strategic approaches by the GoA. It is important, therefore, that the creation of the zones take in consideration the adequate supply of reliable and good quality economic infrastructure services at competitively prices. This would avoid or postpone the need for major investments to allow the creation of the zones. Indeed, the most successful Zones are those that were created in areas that counted with existing
10
11
12 13
14
22 infrastructure. The existence of economic infrastructure is an important criterion to be taken in consideration for the identification of a site to create an ARDEZ. ii. Access to Land Resources 15 Physical availability of land well located and with acceptable levels of fertility is not enough for entrepreneurs to be able to invest in forest or agriculture businesses. Since these investments require time to mature, it is critical that investor have the certainty that they will be able to harvest the products of their efforts in the future. This certainty in many countries is derived from a clear and titled property rights regimen that is protected by the state. It is also important that these rights can be traded in market so that investors do not feel trapped into the business and are able to exit if needed. However, property rights themselves are just one solution that provides investors with the assurances they need. Other solutions could provide similar assurances, such as the one that has been adopted by Angola. However, the land concession system merits improvement to make it more transparent, agile, and secure; assure lands free from occupants and claims, and allow for tradable concession titles. Therefore, the GoA needs to make an effort to make sure that lands inside the ARDEZs provide such security. Investors are more likely to protect the lands they use from environmental degradation when they have the security they will be able to capture themselves or trade the benefits of greater productivity and reduced correction costs. Therefore, these measures tend to improve the environmental conditions in the country. iii. Biodiversity Preservation Strategy 18 Africa in general and Angola in special are know for their important biodiversity resources. It is also known that the war has greatly affected the sustainability of species and, in cases, their survival is at risk. Agriculture and, to a lesser extent, forest uses of the land have adverse impacts over the ecosystems where they are located. If these ecosystems themselves, or species within them, are at risk of extinction, investors socially responsible will be reluctant to participate. To do otherwise may bring a reputational risk which can affect their image and businesses anywhere they operate. Besides, wildlife and natural landscapes are important tourism attractions in Angola and could become even greater source of economic activity. For many reason including these, it is critical that the country counts with an effective biodiversity preservation and conservation system. The system needs to protect a self sustaining ecosystem samples so that species can continue to survive and indeed evolve. That means that the size of those samples needs to be technically determined and legally established as a protected area, and management plans be developed and implemented. These units may generate their own revenues based on ecotourism. However, the main concern here is to assure that there will not be conflicts between the use of lands for agriculture and forest based businesses and the need to protect the nations biodiversity
16
17
19
23 resources. The GoA has the legal means and can take a leadership role to involve third parties, including the private sector, to address this concern. 20 By protecting ecosystems and biodiversity therein, these measures will also contribute substantially to the country environmental sustainability, international image, and increase business and income generating activities in ecotourism. iv. Reconciling Agricultural and Forest Uses 21 Decisions on agriculture or forest uses on the same land often generate conflicts not only for landowners themselves but also for neighbors, society in general, and even for the international community. At a highly competitive commercial level, agriculture and forest uses of a given peace of land are frequently mutually exclusive alternatives. In many cases, lands covered with native forests are converted into agriculture land uses, resulting in deforestation. Traditionally, deforestation in a first steps in the slash and burn agriculture process, which is a major source of greenhouse gases that may affect the climate. Misused land often generates erosion, and runoff which deteriorate the quality of the environment, reduce natural fertility of the soils, and pollute waters. All these situations exemplify the need for clear rules of the game so that the decision about land use in the ARDEZs, as well as elsewhere in the country, can be made taking private and social considerations into account. Clear rules regarding land use decisions are critical for investors to ensure access to markets as well as to maintain or improve their reputations. This situation has been recently illustrated in the Brazilian Amazonia in the cases of soybean and livestock production. Major soybean commercialization companies and producers associations agreed not to buy soybeans produced in areas deforested since 2006 (Nery, 2009). Major supermarket chains and meet packers were accused of buying meet produced in illegally deforested areas in Amazonia. They reacted by suspending all purchases of meet from the region until a solution was found to assure that only legally produced cattle was used (Albuquerque, 2009). Those radical solutions have led to a greater need to trace the origin of outputs, an issue that is easily addressed by well functioning zones. The situation in the Amazon and, to different degrees, in other parts of Brazil has been exacerbated by a complex, scientifically unfounded, and economically questionable legislation that compounds the conflicts and imposes substantial risks, and costs, including opportunity cost, to society. It is, therefore, critical that economic and scientifically sound rules that promote efficient solutions and clarify roles and procedures be adopted. Combined with an effective Biodiversity Preservation System, as discussed above, one alternative solution to reconcile these conflicts and establish clear rules is the adoption of a Forest Vocation Land (FVL) policy8. This policy, briefly discussed above, helps to avoid the potential conflict of choice among land uses in a very simple manner. It simple identifies lands that are more at risk of erosion and runoff and requires that landowners adopt measures needed to conserve soil and water and their costs.
22
23
24
See footnote 4.
24 25 It is often the case that the additional conservation cost make agriculture less profitable in forest vocation lands. On the other hand, forest covers (which are themselves natural protectors of soils) become the most competitive use for those lands. The natural competitiveness of forest uses or cover on those lands, gives the policy its name. The lands which are not under such erosion and runoff risks, the so called nonforest vocation lands, can have any use, including forest uses, land owners opt without the need for any restriction or controls from the state. Only FVL need to be monitored and controlled to assure the proper internalization of soil and water conservation costs into the land use decisions of landowners. Under this policy, landowner are free to use their forest vocation lands for sustainable agriculture which does not erode soil or generate runoff, or for any type of forest cover, such as native forests, plantation forest, or simply let the natural regeneration reestablish a forest cover. Forest Vocation Land policy is intuitive, simple and inexpensive to establish and enforce, and promotes the most efficient use of the land. Its adoption creates conditions and rules that enable investors to plan, predict costs, and more flexibly select the most profitable land use for a given peace of land.
26
27
28
v. 29
Adoption of ARDEZ Regulatory and Institutional Framework
To function properly and fulfill their purposes, the Agriculture and Rural Development Economic Zones need to be well regulated and be administered efficiently. Doing so clarifies to investor the rules for the creation and operation of the zones, diminishing risks and uncertainties that may be translated in costs and reduced profitability. It is, therefore, critical that the GoA establishes norms and defines the institutional arrangements to bring the transparency and incentives for competitive agriculture and forest based businesses in ARDEZs. The government needs to issue an ARDEZ General Law that defines clearly special rules that obviously are much more attractive to investors that the legal framework that applies to the entire country. It can include labour rules based on the model recommended by the International Labour Organization. The Law should define the roles of the private sector inside of the zones not only as agriculture and forest producers, but also as provider of private and public services to business and Zone communities. The rules need to clarify the free trade regimen for import and export by considering the regulations of the World Trade Organization. They also need to adopt norms that allow for efficient and cost effective customs procedures as well as rapid and costless visas and work permits issuing. These rules should also indicate the procurement and bidding policies that will be applied to assign rights over land, and public services provision inside of the Zones; the procedures for broad land zoning as well as the application of forest vocation land policy. They have to establish environmental, social, and occupational and safety safeguards. The law needs also to define the non-distorting and competitive subsidies distribution and tax and fees incentives.
30
25
Box 3: Some Lessons Learned for Special Economic Zones. Special economic zones (SEZs) are generally defined as geographically delimited areas administered by a single body, offering certain incentives (generally duty-free importing and streamlined customs procedures, for instance) to businesses which physically locate within the zone. For developing countries, SEZs traditionally have had both a policy and an infrastructure rationale. In terms of policy, the SEZ can be a useful tool as part of an overall economic growth strategy to enhance industry competitiveness and attract foreign direct investment (FDI). Through SEZs, governments aim to develop and diversify exports while maintaining protective barriers, to create jobs, and to pilot new policies and approaches (for example, in customs, legal, labor, and public private partnership aspects). SEZs also allow for more efficient government supervision of enterprises, provision of off-site infrastructure, and environmental controls. To a great extent, the fate of zone initiatives has been determined from the outset, by the choices made in the establishment of policy frameworks, incentive packages, and various other provisions and bureaucratic procedures. The experience suggests that maximizing the benefits of zones depends on the degree to which they are integrated with their host economies and the overall trade and investment reform agenda. In particular, when zones are designed to pilot legal and regulatory reforms within a planned policy framework, they are more likely to reach their objectives. The host government should aim to simplify investment approvals and expatriate work permits; remove required import and export licenses; and accelerate customs inspection procedures and automatic foreign exchange access. Other lessons and considerations for the creation and operation of successful zones include: zones can be successfully developed and operated by private or public-private partnership entities; zones should be location near existing infrastructure and facilities, Zones related activities and requirements need to use streamlined procedures; need a clear, transparent, and non-distorting incentives framework; must have cost effective labor, tax, land tenure regimens and performance requirements. Prepared based on FIAS, 2008.
31
The ARDEZ General Law also needs to define the institutional responsibilities for the creation, operation, monitoring and evaluation of the Zones. Best practices recommend the establishment of an autonomous regulatory agency that would be responsible to make sure that the General Law is applied and to coordinate the participation of other actors. Section IV.C.i will further discusses the institutional arrangement recommended for the Zones. Other supporting rules will be needed especially as related to the rule of law so investors have no doubts about the prevalence of the contract as the principal instrument to regulate commercial relationships among entrepreneurs and between them and the state. The regulatory solution for addressing commercial conflicts could depend on private mediation, and as a last resort, to the services of international organizations such as the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group. The regulation would also need to establish mechanisms whereby private companies can complement the role of the state in ensuring the security of assets and the persons working in the zones. A special regimen for the timely application of civil and criminal justice may also be necessary. Lastly, the National Development Bank of Angola (BDA), the African Development Bank (AfDB), and the World Bank (WB) could be important sources of complementary funding for the various infrastructure investments that may be needed as well as to participate in the financing of private investments in the zones.
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26 vi. Technology Adaptation and Adoption Strategy 34 Productivity is a major source of profitability and competitiveness that attract investors. It is critical that agriculture and forest producers adopt the most productive technologies available and adapted to the Savannah conditions of Angola. It is also possible that producers would need new technologies to address very particular problems or opportunities found in the country. It is expected that investors would the major introducers and adapters of technology found elsewhere, including those successfully developed for Cerrado areas of Brazil. However, these responsibilities have economies of scale that joint ventures between investors and the government could result on a more effective way to adopt these technologies. This adoption requires not only a research infrastructure but also scientist, professionals, and trained producers and labour force to be effective. To address the need for skilled farmers, labor, and professionals, training centers, such Agriculture Training Centers ATC, can be constructed in each ARDEZ. With the financial support through a voucher system, small, medium and large-farmers as well as labors, and professionals, will be able to obtain the skills needed to effectively act in and out of the zones. This solution will be one of the most important innovations that the ARDEZ framework can bring. It is, therefore, recommended that a Technology Adaptation and Adoption System that clarifies the mechanisms and forms of collaboration among stakeholders be designed and adopted formally. This would clarify to investors their eventual costs and actions to take to use the most productive technologies available. In this context, the implementation of the reorganization9 of the agriculture research system of Angola would be surmounting importance. South South collaboration initiatives between governments in partnership with private sector would also facilitate the transfer and adoption of appropriate technological packages available elsewhere. Annexes 8 and 10 provide examples of technologies and actions that could support the adoption of technology and increase and forest productivity in Angola. Short Run Strategy: Agriculture and Rural Development Economic Zones Part II of the strategy, as shown in Figure 4, is a short run bypass of the countrys unfavorable business climate through the creation and operation of ARDEZs. Angolas legal framework establishes the possibility of creating these zones to facilitate agriculture and forest based investments. The success of these zones can serve as demonstration of the effective of the policies they applied and contribute to the process of incremental improvement of the countrys business climate. As the present legal framework is not precise enough generating uncertainties and risks for investors, it is necessary the establishment of a regulatory and legal framework that clarifies the creation, effective operation, and the provision of
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MINADER/FAO/EMBRAPA. 2007.
27 complementary services. The ARDEZs special conditions will give investors an excellent business climate by decreasing substantially their costs as compared to what businesses face outside them, increasing their revenues, and reducing risks. The greater profitability expected for those agriculture and forest based businesses operating inside ARDEZs is likely to attract domestic and foreign investment. 41 The expected success of ARDEZs in bringing about agriculture and forest based investments on a sustainable basis to selected areas of rural Angola will also demonstrate the virtues of the policies and measures taken. An evaluation of this expected success might indicate the wisdom of extending similar conditions to the rest of the country so that all may benefit from the improved business climate. Over time, the strategy promotes the convergence of the conditions found in the rest of the country into the favorable business climate found inside the Zones.
Health, education, potable water, sewage, security Input import substitution opportunities Qualified labor Exportable agr forest production Input supply Income Adapted technology dissemination Businees opportunities Domestic consumption of agro forest production Services provision Forest production contracts Agriculture production contracts Fuelwood, charcoal, timber Food Food security
Abroad Foreign exchange Machines, Equipments Technology Agro forest production inputs
ARDEZ
Country
domestic inputs Entrepreneurship Country unavailable Agrochimicals profissionais National capital National Profissionals agrochimicals
Capital
Workers
Figure 5: Relationships between the ARDEZ and the rest of the country and the abroad.
42
Figure 5 shows the relationships between the ARDEZs and the rest of the country and foreign actors. The Zones are expected to attract foreign investments which would arrive bringing along not only capital but also technology, specialized professionals not available in Angola, entrepreneur and business administration capacity, machines, equipments and other inputs. The main output of ARDEZs to be sent abroad the agriculture and forest based products therein produced. The sale of such production would generate revenues in the form of foreign exchange that can be used also for further investments.
28 43 ARDEZs are not isolated from the domestic economy and indeed expected to generate major benefits for those in the rest of the country. The Zones will consume a series of domestic inputs, such as national capital10, local professionals and workers, and other available and competitive inputs. The consumption of domestic inputs will generate income to local suppliers, service providers, forest and agriculture productions contractors, jobs for workers, and other opportunities for domestic businesses. ARDEZs will also adapt technology that will be become available for the country producers and allow the training of workers in the skills needed to apply them. The forest and agriculture outputs produced in the Zones will likely be very competitive in the domestic markets supplying the population with fuelwood, charcoal, timber for construction and industry, and food products that can improve Angolas food security. This section will discuss issues related to the legal and governance framework for their creation and operation; the selection of sites for the creation of zones; government complementary supporting activities; the role of investors in the workings of the ARDEZs, how outsiders from the zones can participate and benefit from its operations; and some suggestions for the design and financing of a project to support the establishment of the entire framework for the sustainable development of Angolas Savannah.
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Governance of the ARDEZ
This section will discuss issues related to the legal and governance framework for the creation and operation of the zones. Figure 6 summarizes the main issues and actors of the recommended framework for the ARDEZs. During the presentation of Part I of the strategy, the role of the government in creating the legal and institutional conditions for the zones was explained. Here we will further present the main features of the Autonomous Regulatory Agency (ARA), which will be in charge of applying the law and managing the processes of promotion, creation, and operations of ARDEZs. The role of the manager of each zone, either a private contractor or a developer, will be detailed as well as how operations inside the zones by investors operators can be undertaken. The instruments that relate those actors and those that instruments that allow the involvement of outside potential participants of the zones opportunities and stakeholders will also be presented. It is recommended the creation of the Autonomous Regulatory Agency to be responsible for the application of the ARDEZs General Law, including setting the operational rules for the zones creation on behalf of the State, and for the evaluation and approval of proposals by private developers to create zones for which they would be the managers. ARA would also set more detailed operational policies for land zoning (including for the application of FVL
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Domestic and foreign investors are equally treated in taking advantage of the opportunities offered by the ARDEZs.
29 policy), safeguards for environment, social impacts as well as for occupational and safety of works. The Agency would have an important promotional role and the preparation of market and other supporting studies to facilitate investors exploration and due diligence of business opportunities related to ARDEZs. 49 ARA would hire a contractor to manage the funds received from the government to subsidize training of workers, technicians, landowners, entrepreneurs, and professionals through a voucher system that subsidize the trainees themselves and not training services providers. The contractor would also manage resources to be used to share with investors or their associations the costs of adaptation of technologies to be brought from abroad or researching new ones. The proportion of the share of the costs would be defined by a competitive process whereby eligible proposals that asks for least subsidies would be granted first. The Agency would present an Annual Monitoring and Evaluation Report to the government and may suggest adjustments to the General Law or other actions to improve the frameworks effectiveness. ARA would also have an Advisory Committee so that it can benefit from the comments, and advice from stakeholders representatives, such as domestic and foreign investors and entrepreneurs, rural producers, workers, and nongovernmental organizations. Other government agencies and organizations would be part of a Coordinating Committee so as to facilitate the collaboration and assure the timely realization of their responsibilities in regard to proper implementations and operation of the Zones. There are two basic ways by which particular zones could be created: by ARA itself based on feasibility studies; or by ARAs approval of private developers proposals prepared following transparent norms. ARA would procure among private investors the management services for the zone. Privately proposed zone developers would sign a concession contract with ARA for the implementation and management of the approved zones. For that concession right, developers would pay fees to ARA, and present annually Monitoring and Evaluation Reports accompanied by independent technical and accounting auditors opinions. ARA would hire the supervision of the implementation of the contracts to manage the zones they created, as well as of the concession contracts. Both management or concession contracts would establish the responsibilities of Zone administrators which includes the licensing or concession of activities, facilities, and investments inside the zones; to prepare and promote land zoning for urban development, agriculture aptitude and forest plantation aptitude of the zones land; and the identification of forest vocation lands and monitoring and enforcement of the FVL policy; as well as the enforcement of standards and safeguards. The zone administrators would be in charge of contracting, licensing or giving in concession the services, facilities, and amenities needed to ensure attractive living conditions for zone residents. The Administrators would
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30 also be in charge of customs11 operations inside the zone as well as export and import licensing. Administrators would be free to choose to execute themselves these responsibilities or hire contractors. 54 All these licenses, business incorporation, import and export permits, customs procedures, utilities hiring, land concession, and other public services would be facilitated by expedited procedures, and managed by a single window per zone. Zone administrators would receive revenues from fees, concession profit shares; and other incomes. Zones are expected to be self financing, except for the government subsidies and other financial incentives they may obtain. The ARDEZ stakeholders would be eligible to benefit from non commercial risk mitigation to be provided by MIGA. Among the risks addressed could be: war, civil disturbances, terrorism, and sabotage; breach of contract; expropriation; currency restrictions; and mediation between major investors and the government. ii. Zones Selection 57 The selection of sites for the creation of zones is a critical step to ensure their feasibility. A viable zone is one that has the acceptable potential for profitable and competitive business to be undertaken therein. As an agriculture and forest business oriented zone, a first criterion would be an area large enough counting with good agroecological conditions (soil, climate, water, topography) and/or forest resources. Land should have the features discussed above so that they are accessible for investors. Zones most likely to be successful would also need to count with existing good quality economic infrastructure which would, therefore, depend less on governments scarce resources and capabilities. If such infrastructure does not exist or needs improvement or rehabilitation, these costs will need to be considered in the evaluation of the feasibility of the zone. Another criterion to be taken into account is the interest and acceptance of the local population and neighbors for the type of development and opportunities that would be implemented. iii. Role of Private Investors 60 Investors, entrepreneurs, and other operators would be the principal actors of the zones. They are the ones that would produce agriculture and forest outputs, supply inputs, equipments, and machines for production. They are also the providers of services such as storage and commercialization; industrial processing; education; training; health; communication; water, waste and sewage disposal; security and mediation of conflicts; energy; business
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Customs would be undertaken inside the zones and not in the port of entry. Containers would be transported directly to the zones and sent from them directly to transporters so as to expedite procedures and avoid the limitations and costs of normal customs operations.
31 development; and any other service needed for the proper functioning of production and for a good quality of live for the zones residents. 62 All those activities would be available for the private initiative by offering businesses opportunities for domestic and foreign investors.
32
War, civil disturbance, terrorism, and sabotage Breach of contract Expropriation
Non commercial risk mitigation MIGA
Currency restrictions Mediation between investors and goverments
Investors - operators ARA-Autonomous Regulatory Agency ZM-Zone Management Contractor-Developer Communication Creation Eligible services of new activities Zone Private Management (or Licensing Contracts zones General On site Private or concesion) Contract Education, health, infrastructure Economic sector Zones' Annual M&E concesion On site policy roles Zones law ameneties services Reporting infrastruture Activity Procurement Investment Tax & fees Promotion Licenses Local roads policies provision incentives Free regimen Safeguards Capital & Zones Standards' trade Social Water, Waste & profit operational regimen repatriation impact compliance ILO Labor Non distorting Sewage services Conflict mediation regulation regulations , foreign regulation Land competitive enforcement Revenues exchange subsidies services zoning Government
Environmental, Land Duty free zoning WTO trade & customs policy social, occupational regulations inspection & safety safeguards Environmental standards & regulation Land zoning methodologies Occupational and safety standards Urban zoning
Visas & work permits
Off-site infrastructure
Zone's yearly M&E reporting
Forest aptitud zoning
Agriculture aptitud zoning FVL identification & monitoring
Revenues.
Storage & commercialization Security services Training services
Other on site services

Business Development Services Extension
Electricity Railroads Roads Airport Communications
Training and R&D subsidies funding
Zone level procurement Competitive subsidies

Cost sharing Vouchers for training
Training facilities
Zone's Customs operations Export - Import licensing
Auditing reports M&E reports Cost sharing grants
R&D
Creation and start-up funding ARA
Justice services
Training vouchers
National development bank financing Zone private supervision contract Zone contract supervisor
Zone promotion services
Agriculture forest production
Input providers Industrial processing ZM Contracts, grants & licenses supervision contracts Technical & Accounting Auditors
Competitive subsidies management contract Competitive subsidies manager
Service, facilities, ameneties procurement
Contract Contract forest production farming Professionals Labor Land owners Entrepreneurs Supervision contractors
Outside participants
Figure 6: Principal Actors, and their Roles and Relationships. Governance Model for the Agriculture and Rural Development Economic Zones.
33
v. 63
Nationals located outside the zones can participate and benefit from its operations in several forms. Zones will create many job opportunities for workers, technicians, and professionals. As the supply of such skills in the country is scarce, they nevertheless will provide a clear incentive for education and training to be subsidized by a voucher system that helps the acquisition of the demanded skills and knowledge. The zones create many opportunities for entrepreneurs. To rely on reliable small and medium businesses often are the most cost effective solutions for the demands investors may have for the provision of services and goods. In addition, as discussed above, zones would require provision of a series of services that national investors could provide. To improve the entrepreneur skill of local businessman, the voucher system will also subsidize their in matters of business creation and operation. However, it is in the main agriculture and forest production activities of the zones that the greatest opportunities would be offered. Investors would be able to contract neighboring land owners to produce in their lands agriculture of forest outputs for future delivery but at competitive prices. There several modalities of contract farming and of forest production contracting that could be adopted and compete for landowners interest. In most cases, farms will be benefit from the technical assistance and inputs facilitated by investors, and some assurance of market for their production. By this collaboration, neighboring farms will become partners of the zone producers and indirectly benefit from the favorable business climate existing inside the zones.
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34
V. 1
CONCLUSIONS AND RECOMMENDATIONS
Angola counts with important agroecological resources in its Savannahs that could serve as the basis for reducing poverty and vulnerability, bringing prosperity, and improving welfare in rural areas and the country as whole. The agriculture and rural development of Savannah areas could improve food and nutritional security of Angola by introducing more productive technologies that would increase food and fuelwood supplies leading to local physical availability and lower prices, and increase labor income in rural areas. The increase in supplies and rural income would increase also the populations economic access to food and fuelwood. There exist a body of agronomical knowledge and technology developed for the Cerrado region of Brazil that could be adapted and adopted for the savannah regions of Angola. The Cerrado agriculture development in Brazil also demonstrates the importance of an appropriate business climate that allow for more profitable investments in agriculture and forest based production. Angolas business climate for investments is among the most challenging in the world, leading few opportunities for competitive investments to prosper. However, most of the unfavorable factors affecting the business climate for agriculture and forest based businesses in Angola are man made, and therefore, it is possible to change them for the better. To promote the sustainable development of Angolas Savannah and take advantage of its full potential, it is recommended the adoption of a two-fold strategy. Both parts of the strategy seek to improve the profitability of agriculture and forest based businesses. The potential for substantial profitability leads entrepreneurs to an increased level of investments, which in turn can result in positive economic, social, and environmental impacts. The first part of the strategy seeks the general improvement of the business climate. It is designed to address some well know but critical factors that serve as one of the bases for the successful implementation of the second part of the strategy. This country wide part of the strategy also is intended to initiate an often slower but hopefully continuous process of successive interventions to improve business climate. The second part of the strategy involves the creation and operation of Agriculture and Rural Development Economic Zones. This part of the strategy requires the establishment of a regulatory and legal framework that allows the creation of ARDEZs, their effective operation, and the provision of complementary services on a competitive basis. These privileged conditions will give investors an excellent business climate by decreasing substantially their costs as compared to what businesses face elsewhere in the country, increasing their revenues, and reducing risks and uncertainty.
5 6
35 10 The greater profitability expected for those agriculture and forest based businesses operating inside ARDEZs can make Angolas production from these areas more competitive on a local, regional, and likely international basis in a relative short time period. The effective creation of favorable business conditions is likely to attract domestic and foreign investment. The expected success of ARDEZs in bringing about agriculture and forest based investments on a sustainable basis to selected areas of rural Angola will also demonstrate the virtues of the policies and measures taken. An evaluation of this expected success might indicate the wisdom of extending similar conditions to the rest of the country so that all may benefit from the improved business climate. Over time, the strategy promotes the convergence of the conditions found in the rest of the country into the favorable business climate found inside the Zones. The framework proposed could be financed and technically supported by multilateral agencies like FAO, ILO, the World Bank (including MIGA and FIAS); The African Development Bank; and bilateral donors, international NGOs, and consulting firms. As business climate improves, it is likely that private investors could also participate by undertaking revenue generating activities.
11 12
13
14 15
16
Recommendations for the Implementation and Financing12 17 The following are recommendations for the design and financing of projects to support the implementation of the framework for the sustainable development of Angolas Savannah. The full implementation of the framework needs substantial political will and priority to be successful. Decision makers, political leaders, and society need to share a common vision and understand that, although expected benefits would start soon to be harvested, the full impacts of the framework will require hard work, investments, commitment, and support over to time. Angola would not be alone in the endeavor. The framework proposed could be financed and technically supported by several potential partners such as multilateral agencies like FAO, ILO, the World Bank (including MIGA and FIAS); The African Development Bank; and bilateral donors, international NGOs, and consulting firms. At appropriate stage, domestic and international investors and entrepreneurs would assume their protagonist role as the principal actors of production and service provision.
18
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12
See also Annex 11.

36 21 The successful detailed design and execution of the framework would likely involve several projects with interrelated links to be prepared, financed, and executed by different actors, and demanding leadership and coordination instruments. A clear and effective institutional arrangement would be needed, with appropriate funding and political prestige to perform these critical roles. Establishing such arrangement would be among the first actions to be taken. This arrangement would be more effective the more it standardize common procedures such as procurement, technical and financial reporting, etc. The action plan implementation would involve projects with their own needs for technical support and financing. Angola would benefit by leading and managing the processes that would define the financing packages for each project taking advantage first of donations, budget assignments, multilateral banks loans, domestic and international banks. As business climate improves, it is likely that private investors could also participate by undertaking revenue generating activities. Pilot development projects such as those found in the Annexes of this study can be good instrument for starting agricultural, forest, and rural development of Savannahs, but should be consistent with the framework of implementation of the ARDEZs and the improvement of the business climate. Another important initial step would be the establishment of the legal and institutional framework needed for the creation and operation of the ARDEZs. Here the support of FIAS, MIGA, and international consultants would be critical to help to design these instruments using best practices found elsewhere. Donations, budget assignments, and pre-investment lending could possibly be mobilized to finance these activities. Simultaneously, a study should be conduct to identify and design critical aspects, and prepare feasibility studies for 2-3 pioneer well located ARDEZs, at least one of them relying more strongly on forest based businesses. This process should take into consideration the recommendations of an improved biodiversity protection system. This would include the land zoning mapping and regulations, land plots identification to concession, identification of business opportunities to support agriculture and forest based investments, and procurement documentation preparation. Economic infrastructure needed to support the implementation of the pioneer zones, would be identified, evaluated, and investment projects designed and analyzed so that the corresponding services would become available in a short time frame. The locating the zones in better served areas, would reduce the needs for such investments but it likely that they nevertheless will be substantial. With these initial projects, the framework would be set in motion and have an important basis to continue the process of incremental of establishing new zones and improving the countrys business climate for all types of businesses. The successful implementation of the framework proposed would not only bring prosperity and increased welfare for Angolas Savannah area population; it would stimulate the improvement of business climate elsewhere in the country
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37 with the consequent increase of investments and economic active. It would also serve to demonstrate the merits of the strategy for other African countries in similar conditions.
38
VI-
REFERENCES
AfDB, 2008. Angola: Country Strategy Paper Update 2008-2009. NA: AfDB and AfDF. AfDB, OECD, 2008. African Economic Outlook. Paris: OECD. Albuquerque, Flvia, 2009. Supermercados suspendem compra de carne de frigorficos acusados de desmatamento na Amaznia. Agencia Brasil. July 15th, 2009. Available at http://www.agenciabrasil.gov.br/noticias/2009/06/15/materia.200906-15.3487571221/view BID. 2002. Instrumentos Institucionales para el Desarrollo de Dueos de Pequeas Tierras de Vocacin Forestal. Proyecto ATN/NP 7444 RS. Available at http://www.iadb.org/en2/home-in.html Cismondi, Oscar. 2009. Poltica de Tenencia e Uso da Terra. Report prepared for FAO (Mimeo, 10/06/09). EU, 2006. Update of the Country Environmental Profile of Angola. NA: European Union. FAO, 2000. World Soil Resources Report 90: land resource potential and constraints at regional and country levels. Rome, Italy: FAO. Available in the Internet at ftp://ftp.fao.org/agl/agll/docs/wsr.pdf . FAO/WFP, 2006. Special Report: FAO/WFP Crop and Food Supply Assessment Mission to Angola. Rome, Italy: FAO. Available at ftp://ftp.fao.org/docrep/fao/007/j2771e/j2771e00.pdf FIAS, 2008. Special Economic Zones Performance, Lessons Learned, and Implications for Zone Development. Washington, DC: The World Bank. Gwartney, James D. and Robert Lawson; with Seth Norton. 2008. Economic Freedom of the World: 2008 Annual Report. Canad: Economic Freedom Network. Available at www.fraserinstitute.org . IDA, 2007. IDA Interim Strategy Note for the Republic of Angola. Washington, DC: International Development Association (World Bank Group). IFAD, 2005. Republic of Angola: Country Strategic Opportunities Paper. Rome: International Fund for Agricultural Development Lumbila, Kevin N. 2005. What Makes FDI Work? A Panel Analysis of the Growth Effect of FDI in Africa. Africa Region Working Paper Series No.80. Washington, DC: The World Bank.
39 MIGA, 2007 (May). MIGA in Africa. Washington, DC.: World Bank Group Multilateral Investment Guarantee Agency MINADER/FAO/EMBRAPA, 2007. Proposal for the reorganization of the Agricultural Research System of Angola. Vols. I-VIII. September MWH,2006.Atualizao do Perfil Ambiental de Angola.NA:ComissoEuropia eMinistriodoPlaneamentodeAngola. Nascimento, Jos Rente. 2005. Forest Vocation Lands and Forest Policy: When Simpler is Better. RUR-05-03. Washington D.C.: Interamerican Development Bank, Sustainable Development Department. 58 p. Available at http://www.iadb.org/sds/doc/RUR-ForestVocationLands.pdf. Nascimento, Jose Rente & Ivan Tomaselli, 2007. Como Medir y Mejorar el Clima para Inversiones en Negocios Forestales Sostenibles. RE2-05-004 Serie de Estudios Economicos y Sectoriales. Washington, D.C.: Inter-American Development Bank. Nelson, B. & A. Behar. 2008. Natural Resources, Growth and Spatially-Based Development: A View of the Literature. World Development Report. Washington, DC.: The World Bank. Nery, Natuza. 2009. Moratria da Soja na Amaznia renovada e quer ampliar aes. July 28th, 2009. Estadao.com.br. Available at http://www.estadao.com.br/noticias/geral,moratoria-da-soja-na-amazonia-e-renovada-equer-ampliar-acoes,409777,0.htm OECD, 2008. African Development Outlook. Paris: OECD. Spehar. Carlos R. SD. Opportunities and Challenges for the Development of African Savannahs Using the Brazilian Case as Reference. Consultancy Report for FAO. Mimeo. Tollini, Helio. SD. Integrating Brazilian Savannahs to the Production Process: Lessons Learned. NP: NA. WEF, 2009. The Africa Competitiveness Report 2009. Geneva: the World Economic Forum, the World Bank, and the African Development Bank. WEF, 2009a. The Global Competitiveness Report 2009-2010. Geneva: the World Economic Forum. Available at http://www.weforum.org/pdf/GCR09/GCR20092010fullreport.pdf Wiggins, Steve. 2005. Restoring Growth in African Agriculture. ODI Opinions 45.. London: Overseas Development Institute. World Bank, 2007. Angola: Investment Climate Assessment. Washington, DC. : The World Bank. World Bank, 2008a. Market Oriented Smallholder Agriculture Project. Project Appraisal Document. Washington, DC. : The World Bank.
40 World Bank, 2009. Awakening Africa's Sleeping Giant: Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond. Washington, DC: FAO and The World Bank. World Bank, 2009a. The Little Data Book on Africa, 2008. Washington, DC: The World Bank. World Bank, 2009b. Doing Business 2010. Country Profile for Angola. Washington, DC. : The World Bank and the International Finance Corporation. Available at http://www.doingbusiness.org/Documents/CountryProfiles/AGO.pdf
(Final Report)
ANNEXES
1 2 3 4567 8910 11 Maps and Basic Information about the Brazilian Cerrados. Maps and Basic Information about Africa. Maps and Basic Information about Angola. Country and Rural Sector Background. Economic and Social Data and Indicators for Angola. Potential Equivalent Arable Land and Forest Vocation Land estimations for Selected Sub-Sahara African Countries. Terms of Reference. Technological Packages from Cerrado to the Savannah Workshops. Glossary. Promotion of Sustainable Biofuel Development Programme in Angola - PROBIOS. Presentation. Agriculture and Rural Development Economic Zones: Framework for Rapid Development of Angolas Savannah
41
ANNEX 1 Maps and Basic Information about the Brazilian Cerrados. 1. The Cerrados cover a vast area of 204 million hectares, spreading into the Brazilian tropics. Its importance has grown in the world, having a greater potential than the plains of North America, Europe, Argentina and Australia (Spehar, 2006). Similarities with other tropical environments turn them into a reference for technology transfer and development. The common points with the African Savannahs are their soils. Altered by natural forces, they have rendered acidic and unfertile in large proportion (Spehar, 2007). Major achievements, leading to the understanding on how soils function, and how to amend them at economical rates, have changed the scenario. Adapting crops to the new environment and livestock breeding and husbandry have been essential to complement soil amendment. The combined technology resulted in highly competitive agriculture. This unique experience can be adapted, adjusted and transferred to similar environments, allowing marginal areas to develop. The accumulated knowledge in this environment must be turned into opportunities for learning and application. Major problems, identified by initial survey, guided the decisions on priorities for investigation. In addition to technologies for cropping systems, considerations on native plants and animals conservation and utilization, have been covered. Association of agronomists, biologists and ecologists has been the recent approach to develop the agro-eco-system, respecting the natural forces (Spehar, 2004). Bio-physical and soil characteristics: The climatic environment is characterized by dry season, with alternated rainy season, both lasting about six months. In the latter, 80-90 % of rainfall is concentrated, amounting to 1.500 500mm. There are influence areas, according to the bordering zone, whether being the Amazon or the semi-arid Caatinga. (Fig. 1). Annual precipitation is sufficient to supply the demand of grain, pasture and tree crops. Although dry spells in the rainy season can affect the performance of annual crops, when they are hit at reproductive phase, leading to the presumption it is rather unfavourable to agriculture. Savannah native plants show peculiar performance, as a result of natural selection. It has been demonstrated that water deficit in the dry season is not a deterministic factor of the environments physiognomy, as shown by soil profile studies and native plants root distribution. The available moisture in deep layers of the soil, are evidence that roots of introduced crops must grow deep in order to overcome dry spells (Spehar, 2006). This is another example on how important it has been to understand the savannah environment functioning, guiding the research and development projects. The prevailing soils (Ferralsols, according tofAO classification) are well drained, deep, naturally unfertile and acidic. On average they show the following chemical characteristics: pH 4.8; aluminium (Al) 1.4 cmolc; calcium (Ca) and magnesium (Mg), 0.5 cmolc; phosphorus (P) 1.0 and potassium (K) 30 mg kg-1. The cost for land clearing and amendments, preparing for commercial crop production, amounts to US $2,000 dollars. The vegetation and landscape resemble the African savannah. It is mingled with gallery woods along riverbanks, in a gradient, reflecting acidity and scarcity of nutrients. Limited root growth of cultivated plants, caused primarily by Al toxicity and low available Ca is a major limiting factor for deep root growth (Goedert, 1986, Spehar & Souza, 1999). This exposes plants to droughts and reduces nutrient recovery. Research and development has elucidated the problem, producing durable solutions for agriculture. 42
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The outputs have been: improved varieties, tolerant to these hindrances; amendment to overcome soil limiting chemical characteristics and crop husbandry for economical production; suitable soil management. These findings have guided farmers and input industries. They are covered comprehensively in further sections of this text.... . The Cerrado spreads across 2,031,990 km of the central Brazilian Plateau. The second largest of Brazil's major biomes, after Amazonia, the hotspot accounts for a full 21 percent of the country's land area (it also extends marginally into Paraguay and Bolivia). The most extensive woodland/savanna region in South America, the Cerrado consists largely of savanna, woodland/savanna and dry forest ecosystems. Within the region, there is a mosaic of different vegetation types, including tree and scrub savanna, grassland with scattered trees, and occasional patches of a dry, closed canopy forest called the cerrado. Gallery forests are found throughout the region, although they are technically not considered part of the typical Cerradoformations. The Cerrado actually receives abundant rainfall (between 1,100 and 1,600 millimeters per year), although this rainfall is concentrated in a six to seven month period between October and April. The rest of the year is characterized by a pronounced dry season, and many plant species in the hotspot are well adapted to drought conditions as a result. Much of the vegetation is also adapted tofire, which is an important part of the ecology of the Cerrado. The flora displays a number of adaptations tofire, including thick bark, leathery leaves, a rapid regeneration capacity and deep root systems. Adaptation tofire maintains a balance between grasses and woody vegetation and assists in nutrient recycling and germination. Human Impacts: The Cerrado has supported human populations for ten thousand years, first hunter-gatherers and later small-scale agricultural societies. Neither of these appears to have had a major impact on the integrity of the ecosystem. Beginning in the 16th century, colonization by Portuguese settlers focused mainly on the Brazilian coast, and the interior was once again spared any major development. It was not until the 18th century that the first incursions of colonists began into the Cerrado, starting with settlers seeking gold and precious stones. These first settlements and their accompanying roads and railways opened the way for the development of cattle ranches. Ranches were the first major impact on the ecosystem and remained the primary economic activity in the Cerrado until the 1950s. After the 1970s, with the work of Empresa Brasileira de Pesquisa Agropecuria (EMBRAPA) in soil restoration, the Cerrado region was transformed into the most productive and competitive area for crop production in Brazil. Along with deep soils enhanced by fertilizers, this was also a result of low land prices and flat landscapes, which are good for mechanized agriculture. In the 1950s, the Brazilian government decided to build a new capital city in the state of Gois, in the core of the Cerrado. The construction of Brasilia, which was accompanied by large-scale highway development, was specifically designed to encourage movement into the interior of the country. New transportation infrastructure enabled the transport of cattle and agricultural products to markets from the region. The Cerrado became Brazil's new agricultural frontier in the 1970s and 1980s, with the establishment of many agricultural megaprojects like roads and hydropower plants. This was accompanied by an increase in population and trade development based in agricultural production, mainly soy and corn. In 2000, the Cerrado region was responsible for 35 percent of all crop production in Brazil. Currently, 58 percent of Brazil's total soy production comes from the Cerrado.
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14.
A quarter of all grain produced in Brazil is grown in the Cerrado, and there are nearly 40 million head of cattle, with steady growth projected in both industries, as well as in charcoal production. In total, 37.3 percent of the Cerrado has already been totally converted to human use, while an additional 41.4 percent is used for pasture and charcoal production. The gallery forests in the region have been among the most heavily affected. It is estimated that about 432,814 km, or 21.3 percent of the original vegetation, remains intact today
Source http://www.biodiversityhotspots.org/xp/hotspots/cerrado/Pages/impacts.aspx
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Map 1a: Geopolitical Division of Brazil. IBGE.
45
Map 1b: Cerrado and Other Principal Biomes Found in Brazil Source: IBGE, 1992.
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ANNEX 2 Maps and Basic Information about Africa.
Map 2a: Africas Savannahs.
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Map 2b. Africas Principal Vegetation Types.
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Map 2c: Dominant Soil Types of Africa.
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Map 2d: Areas with Agricultura Potencialin Africa. Soils Arable land is not evenly distributed across Africa. Over half of Africas land is either desert or is otherwise unsuited to agriculture. A further quarter of Africas land area can be classified as having only medium to low potential, often requiring extensive management to be farmed sustainably (Eswaran and others 1996). Many soils classified as medium-potential are the characteristic laterite soils which are weathered, leached of minerals and nutrient-poor, requiring significant nutrient inputs for sustainable farming. Shifting cultivation, which uses the burning of natural vegetation to supply the needed nutrients, is the traditional practice in regions where such soil types predominate (Stock 2004). Chernozem soils located in and around the Congo Basin as well as in Sierra Leone and Liberia in western Africa, account for much of this land with moderate agricultural potential (FAO 2007). Along the margins of Africas deserts, physical characteristics, acidity, alkalinity, salinity, or erosion generally result in soils which are of low agricultural potential and require careful management. Some soils are ideally suited to agriculture in Africa. Around ten per cent of the farmland in Africa has deep permeable layers, adequate nutrients, and suffers little or no moisture stress (Eswaran and others 1996). Many of 50
these prime agricultural lands are located south of the Sahel in Senegal, Mali, Burkina Faso, Ghana, Togo, Benin, Nigeria, and Chad. Areas of prime agricultural lands can also be found in southern Africa in countries such as Mozambique, Zambia, Zimbabwe, and South Africa. These resilient and productive farmlands are primarily soils designated by the Food and Agriculture Organization (FAO) as andosols, mostly mollic andosols (FAO 2007). Another seven per cent of Africas agricultural land requires more management than prime farmland, but nevertheless has high agricultural potential. The majority of these areas have one of four major soil types. Large concentrations of glossic chernozems are found in Cote dIvoire, southern Ghana, and United Republic of Tanzania. In Democratic Republic of the Congo and Nigeria there are large areas of humic andosols. A large region of calcic chernozem is found in Zambia, while northern Morocco has a large area of mollic andosol.
51
ANNEX 3 Maps and Basic Information about Angola
MapIIIa: Angolas Geopolitical Division, and Transportation Infrastructure.
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Map 3b: Relief Map of Angola.
53
Map 3c: Detailed Relief Map of Angola. Source FAO cited in EU, 2006.
54
Map 3d: Temperatura Distribution in Angola.
55
Map 3e: Soil Degradation due to Human Activities.
56
Map 3e: Rainfall Map of Angola.
57
Map 3f: Soil Map of Angola.
58
Map 3g: Vegetation Cover Map of Angola.
59
Map 3h: Agriculture Types Used in Angola.
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Map 3i: Climate Zones Map of Angola.
Source: Africa atlas
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Protected areas of Angola
Map 3j: Protected Areas of Angola.
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Biomes
Map 3k: Biomes Found in Angola.
Dry and Moist Savannah

Covering two-thirds of the land area, Africas savannah is the characteristic ecosystem of the continent (ME Adams 1996). It is found in a broad band flanking tropical rain forests in areas with a significant dry season. African savannahs are home to a greater diversity of large mammals than are found in similar ecosystems on other continents (MacDonald 2003). The primary characteristics of savannah are seasonal precipitation, a more or less continuous cover of grasses tolerant of seasonal precipitation and intense sunlight, and tree cover that does not form a closed canopy (ME Adams 1996). Precipitation is the fundamental determinant of the savannah vegetation structure. However soils, wildlife, human population, and fire are factors as well (ME Adams 1996). Wet seasons produce abundant fire fuels and dry seasons create conditions that lead tofrequent fires. The fires kill many shrub and tree seedlings before they are large enough to survive the flames, thus the savannah favours grasses which can quickly regenerate (ME Adams 1996). Dry parkland savannahalso called Sudan savannahis characterised by relatively long dry seasons supporting scattered trees, and relatively short grasses (Stock 2004). Moist woodland or Guinean savannah tends to be closer to the equator than dry savannah and is characterised by more precipitation. In moist savannah, trees are more closely spaced and gallery forests can be found along streams and rivers (Stock 2004).
Semi-Desert
The Kalahari (Kgalagadi) and the Karoo in southern Africa and the Sahel in northern Africa fall into the category of semi-desert, a region of transition between savannah and desert. Limited, variable rainfall and extremes in temperature have produced a variety of adaptive responses in the plants and animals found here (Meadows 1996). Short grasses and scattered spiny plants predominate (Chi-Bonnardel 1973). Many plants adopt a strategy of avoidance such as surviving the long dry season as a seed and actively growing only during the short wet season (Meadows 1996). Trees generally have small waxy leaves and thick bark to reduce moisture loss. Many trees drop their leaves during the dry season, going dormant to conserve moisture (Stock 2004). The most important and characteristic trees here are the iconic acacias (Chi-Bonnardel 1973). Floral diversity is surprisingly high, particularly in the Karoo-Namib region where there may be as many as 7 000 plant species (Meadows 1996). Humans and animals must also adapt to these climate conditions and to the flora that result from them. Trapped by
63
the lack of moisture and pasture to the north and by the tsetse fl y and disease to the wetter south (Reader 1997), for centuries local pastoralists on the Sahel have moved their cattle seasonally tofi nd adequate pasture. (Reader 1997).
Map 3l: Native Tribes Found in Angola.
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Map 3m: Economic Infrastructure of Angola. Source: OECD, 2008.
65
ANNEX 4 Angolas Rural Sector Background. 1. General context. The Republic of Angola covers an area of 1,25 million km2 and is located on the South Atlantic coast of western Africa, bordering Namibia to the south and the Democratic Republic of the Congo and Zambia to the north and east. Angola became independent from Portugal in 1975 after years of fighting and was immediately engulfed in a civil conflict, which only ended in 2002. Angola is one of Africas most resource-rich countries, with tremendous economic potential, endowed with many mineral resources and vast fertile lands. Yet it is considered a Low Income Country Under Stress (LICUS), largely because of the after-effects of the devastating civil war. Some 750,000 Angolans (7% of the population) died; about 4.5 million were displaced, and another 450,000 became refugees. At the end of the war, Angola was left with a devastated physical and social infrastructure, some of the worlds worst human development indicators, weak governance, and fragile human and institutional capacity. The end of the war exposed very high levels of poverty and destruction in rural areas. 2. According to the 2007 Human Development Report of the United Nations Development Program (based on 2005 data), Angola is ranked 162 out of 177 countries in the human development index, with indicators for health, education and nutrition among the worst in Africa.This is in spite of the fact that Angolas per capita income is one of the highest among the Low Human Development countries with US$2,180 per capita (based on the purchasing power parity measure of income in 2004). However, there is an acute inequality in income and consumption distribution. In rural areas, large percentages of the population are living in extreme poverty, especially in the Central Highlands, where up to 68 percent were reported to be food insecure in 2005. On the health side, HIV/AIDS prevalence is relatively low and it is estimated to be about 4 percent of the adult population aged from 15 to 49 years. 3. Economy. The oil sector dominates the Angolan economy, accounting for about 57 percent of GDP in 2006 and for 80 percent of Government fiscal revenue. Angola is sub-Saharan Africas second biggest oil exporter after Nigeria and oil output is expected to rise. GDP growth averaged 10.9 percent for the period of 2001-2005 and reached 20.6 percent in 2005, 18.6 percent in 2006 and estimates point to a rate around 23 percent in 2007. The agriculture, forestry and fisheries sectors also represent a vast and still largely untapped potential for the local economy, accounting for an estimated 7.8 and 9.8 percent of GDP in 2006 and in 2007, respectively, while annual growth in these sectors averaged 14.8 percent over the period 20012005 and reached 17.0 percent in 2005. 4. The inflation rate has steadily declined, from 116.8% over 2001 to 11.78% by December, 2007 and an estimated 10% over 2008. This has been achieved essentially through a heavy intervention in the foreign exchange market to remove excess liquidity although recent increase in the rediscount rate has also been used by Angolas Central Bank, the Banco Nacional de Angola. Heavy interventions in foreign exchange markets have kept the nominal exchange rate relatively stable in 2006, and the monetary tightening in 2007 resulted in an appreciation of the Kwanza (Angolas currency). However, the strong Kwanza has made imports cheaper and this in turn, combined with high transportation costs due to the poor status of the road network, is severely hampering the development of domestic non-oil sectors, such as manufacturing and agriculture. Angola has consistently run a large trade surplus due to the growing sales of crude oil and diamonds. 5. Agriculture. Although agriculture accounts only for about 8 percent of GDP, it is the main source of employment in the country. It provides employment to some 4.7 million people out of 66
a total workforce of 7.5 million, while only some 600,000 find employment outside the agricultural sector and 2.2 million remain unemployed. Over the past few years, the agriculture sector has re-absorbed an estimated 4.4 millions of (previously) internally displaced people. While, for instance, in 2001 close to 1.9 million people received food aid, this number has declined to some 0.8 million by 2006. 6. Angola has a long history of pre-independence agricultural exports, having been once the third largest exporter of coffee in the world. Exportable surpluses, such as coffee and maize, were for the most part produced by smallholders. During the colonial period, agriculture had a dual structure with a commercial sector of large holdings totalling about 800,000 ha and managed by Portuguese settlers using inputs and mechanized technologies, and a more traditional sector primarily composed of smallholders cultivating about 3.4 million ha. 7. Prior to independence smallholder farmers in the Central Highlands, the agricultural heartland of Angola, were firmly embedded in the market economy and were the main producers for both local and export markets. During the war, agriculture fell to an almost subsistence level in most areas. Instead, the country relied on commercial food imports and food aid. In 2000/01, some 420,000 tons of cereals were imported on a commercial basis; a hrther 330,000 tons were imported as food aid. By 2005/06, commercial imports had risen to 780,000 tons and food aid imports had decreased to 60,000 tons. 8. After independence, most of the settlers left the country and many of the former commercial farms and plantations were converted into state farms, which have now been privatized. The civil war resulted in a virtual collapse of market-oriented production as large numbers of rural inhabitants either fled or reverted to subsistence production. Infrastructure suffered greatly with widespread destruction of roads, bridges and warehouses together with the presence of many thousands of land mines in rural areas. Agricultural exports have been negligible, and the country has become a net importer for almost all products, except for roots and tubers. 9. With the resettlement process and the beginning of the rehabilitation of infrastructure, agricultural production is restarting. Nevertheless, yields are still remarkably low, even compared to other countries in Sub-Saharan Afiica. This implies that there is substantial room for improvement through modernization and technical change; off-the-shelf varieties and technologies are readily accessible and can be adapted to Angolan conditions within a relatively short time and low cost, which represents a major opportunity. 10. Since the end of hostilities in April 2002, the return of so many people to farming, the improved mobility of people and products throughout the country, and the rapidly growing economy, local agricultural markets have gradually started to resume their activities. Major infrastructure rehabilitation programs are now under way, reconstructing roads, bridges and railways, and reconnecting the countryside to markets, cities and harbors. This will drastically reduce transportation costs, and will provide an opportunity to re-establish rural-urban commercial circuits, but it also provides an opportunity for imported agricultural products to penetrate even further into Angolan markets. 11. Still, the poverty levels and number of vulnerable people in the rural areas of the highlands remain very high. A 2005 WFP food security survey in the Central Highlands identified high levels of vulnerable groups, all depending on agriculture as their main source of income: (i)an estimated 19% of households were chronically food deficient, mainly internally displaced andor recently resettled families; (ii) some 30% were considered to be highly vulnerable households,
67
consuming just one insufficiently balanced meal per day, they have low asset ownership and are often female headed households; and (iii) an additional 19% were moderately vulnerable households with more than one source of income, but still consuming just one meal a day. 12. Governance. Angola is governed by a three-tier system of 18 provinces, 194 municipios and 509 comunas, each headed by officials appointed by the next-higher level, resulting in a weak sense of accountability to the population. Power at the sub-national level is concentrated among the 18 provincial governors, who are appointed by the President. Provincial governments are budget management units and negotiate directly with the Ministry of Finance without needing to involve sector ministries. The municipios and comunas are effectively departments of the provincial governments. Recent legislation permits the municipio to be a budget holder, which is a reflection of the Governments stated commitment to decentralization. 13. Below the comuna, the prevailing administration organization is community-based or with a traditional local administration system. Under this system, the smallest unit is the village, which is headed by a traditional chief known as seculu or village councilor. A group of villages, varying from 10 to 20, depending on the size of the villages, form the second tier of a traditional administrative system, called ombala, and is headed by a soba. Both the soba and seculu are traditional hereditary chiefs, and are most important in the social and economic life of the communities, particularly in land administration matters. 14. Governments Poverty Reduction Strategy. Angolas 2004-08 Estrategia de Combate a Pobreza (ECP), was approved by the Council of Ministers in 2003. In line with the MDGs, the main target is to reduce the poverty level in half by 2015. The goal of the ECP is the consolidation of peace and national unity through the sustained improvement of the living standards of the most vulnerable and poorest people in Angola. The ECP highlights rural development, with a focus on the improvement of food security and the re-vitalization of the rural economy. The key proposed actions are: (i)th e strengthening oft he production capacity of the traditional sector, particularly food crops and fisheries; (ii) the re-launching of rural commerce; (iii)a sustainable development ofn atural resources; and (iv) the reorganization of the legal framework and public institutions. Some basic principles are outlined: a focus on smallholders; the importance of community participation; the concentration of, planning, implementation and monitoring at the municipality level; complementary activities with donors, the private sector and NGOs; specific targeting of women, including in relation to access to land; and HIV/AIDS as a cross-cutting concern. 15. Rural development potential role. Agriculture can be one of the engines of the economic growth in this post-conflict period, provided that macroeconomic issues and agricultural policies are appropriately addressed. On the macroeconomic side, there is a high risk that the impact of an overvalued exchange rate undermines agricultural competitiveness, while the agricultural sector budgets still remain extremely low. Government should avoid policies and measures that could be detrimental to market development. The current distribution and subsidized sales of fertilizer, for instance, should be revised and replaced by less market-distorting ways of intervention. 16. Given this natural potential for agriculture in the country, at least three major reasons justify investments in this sector: (i) To reduce poverty and ensure social stability in rural areas. With large numbers of persons displaced, and many farming systems and agricultural value chains
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(ii)
(iii)
destroyed by the war, social stability is likely to be fragile at best unless and until food security and surplus production can be restored and rural populations believe that they, too, have a stake in Angolas future. Thus ensuring stability and a minimum level of food security in rural areas may be of critical long term political importance. It is in the long term interest of the country to demonstrate the importance of these peoples welfare by assisting their return to pre-conflict levels of production and welfare and to integrate them into the national economy as much as possible; To promote for economic growth and diversification. While the role of the rural sector in the national economy is currently minor, Angola possesses a large and wellendowed rural sector. Moreover, between 60% and 70% of Angolans earn their living from agriculture, a sector that can be one of the engines of economic growth in this postconflict period, provided that the correct incentives are put in place. National economic growth and diversification - including employment and foreign exchange earnings will be seriously constrained unless investment and the correct incentives are made now to lay the appropriate foundations for future rural sector growth; and To ensure a sustainable use of natural resources. Despite the low levels of economic activity, the country already faces various pressures on its natural resources, such as the overuse of pastures and subsequent soil erosion, largely attributable to population pressure, desertification, and deforestation of tropical rain forest, in response to both international demand for tropical timber and to domestic fuel use. The promotion of agroforestry approaches, for instance, can support the export diversification strategy of the government, while protecting the biodiversity.
Based on World Bank, 2008a.
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ANNEX 5 - Economic and Social Data and Indicators for Angola.
Source:
70
71
Source: World Bank, 2009a.
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Source: AfDB, 2008.
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Source: AfDB, 2008.
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OUT of 183 countries studied

Angola improved the long and cumbersome process of starting a business, thanks to its one-stop shop, the Guichet Unico da Empresa, reducing the time required by two months. To ease the process of getting construction permits in Luanda, the provincial government is now in charge of organizing and distributing the documents relating to construction projects to the agencies involved in water and electricity inspections.
Source: World Bank.,2009b.
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76
Source: WEF,2009.
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Annex 6 - Potential Equivalent Arable Land and Forest Vocation Land estimations for Selected* Sub-Sahara African Countries (1,000 ha).
Arable and FVL pot. lands (A+F) 248.677 124.335 90.999 93.591 78.896 74.555 62.165 112.670 46.453 127.639 59.043 32.400 121.449 124.415 234.255 27.362 38.644 23.984 26.800 63.985 58.711 24.200 19.503 24.574 11.769 81.555 118.380 11.933 57.642 9.800 5.695 7.200 105.177 12.146
Total land COUNTRIES Sudan Angola Nigeria Tanzania Mozambique Zambia CAR Ethiopia Cameroon Chad Madagascar Cote d'Ivoire South Africa Mali Congo D. R. Burkina Faso Zimbabwe Ghana Gabon Somalia Kenya Uganda Senegal Guinea Benin Namibia Niger Malawi Botswana Liberia Togo Sierra Leone Mauritania Eritrea (T) 249.800 124.800 91.400 94.000 79.100 75.200 62.200 113.300 46.500 128.400 59.400 32.400 121.900 125.000 234.300 27.600 39.000 24.000 26.800 64.200 59.100 24.200 19.700 24.600 11.800 81.900 118.900 12.000 57.900 9.800 5.700 7.200 105.400 12.200 Fi = TiAiDi
Pot. eq. arable lands (A) 62.945 53.914 47.813 45.911 44.002 40.559 35.250 29.220 25.706 24.118 22.793 18.700 17.898 17.383 15.626 15.245 14.251 13.233 13.212 10.164 9.806 9.784 9.037 8.912 7.862 6.539 5.450 5.099 5.045 4.307 3.044 2.788 715 262 (A%) 25% 43% 52% 49% 56% 54% 57% 26% 55% 19% 38% 58% 15% 14% 7% 55% 37% 55% 49% 16% 17% 40% 46% 36% 67% 8% 5% 42% 9% 44% 53% 39% 1% 2%
Drylands (D) 1.123 465 401 409 204 645 35 630 47 761 357 0 451 585 45 238 356 16 0 215 389 0 197 26 31 345 520 67 258 0 5 0 223 54
FVL Potential (F) 185.732 70.421 43.186 47.680 34.894 33.996 26.915 83.450 20.747 103.521 36.250 13.700 103.551 107.032 218.629 12.117 24.393 10.751 13.588 53.821 48.905 14.416 10.466 15.662 3.907 75.016 112.930 6.834 52.597 5.493 2.651 4.412 104.462 11.884 (F%) 74% 56% 47% 51% 44% 45% 43% 74% 45% 81% 61% 42% 85% 86% 93% 44% 63% 45% 51% 84% 83% 60% 53% 64% 33% 92% 95% 57% 91% 56% 47% 61% 99% 97%
A%i = Ai*100/Ti
F%i = Fi*100/Ti
* Countries with more than 5 million Ha of total area except the Congo Republic for which the original FAO source data was incorrect. Source: FAO (2000); as modified by the author.
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ANNEX 7 Terms of Reference. Natural Resources and Sustainable Development Policy Expert Senior International Consultant (50 days)
Under the overall supervision of the Chief TCAS, and the direct technical supervision of designated officer of TCAS, the designated international consultant will:
1.
Familiarize with existing lessons learned from development of Brazilian savannas and the potential for development of African savannas to become available by TCAS. Give special attention to the successful experience of the National Research Centre for Brazilian Savannas of the Brazilian Agricultural Research Organization (EMBRAPA); and in the case of Africa, the studies of the Agricultural Sector Review of Angola and other technical documents prepared by AGPC of FAO; Draw lessons and identify policies utilized by those countries to take advantage of opportunities to increase and improve existing human resources capacities, and also to overcome constraints to strengthen existing capacities of agricultural public institutions, by mean of long-term training programmes and traditional and nontraditional structures of incentives to motivate human resources; Identify alternative policies and instruments to ensure sustainability of the results of institutional reforms and human resources policies to increase and enhance technical and investment capacities of the agricultural and rural sectors of developing countries of Africa; Prepare a detailed annotated outline for the preparation of the report of the consultancy work. This outline should be discussed with TCAS before starting preparation of the report indicated on the item 5 below; Prepare a comprehensive report on the lessons learned from the development of Brazilian savannas vis--vis their potential use for the case of African savannas. It should include a long-term strategy for promoting the sustainable agricultural and rural development of African savannas, based on existing technology and on heavy investments on capacity and institutional building to ensure sustainable development of natural resources; Prepare a proposal for one day workshop on the Sustainable agricultural and rural development of African savannas, with emphasis on Angolan savannas, based on lessons learned from other countries; Prepare a proposal for a teleconference on the draft report and a power point and presentation on the main findings of the consultancy work;
2.
3.
4.
5.
6.
7.
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8.
Taking stock on comments and recommendations of TCAS, prepare the final version of the report.
Qualifications: Advance university degree in sustainable development policy, agricultural and forestry policy development, agricultural and rural development policy development, or other related areas, with at least 20 years of experience of working in sustainable development policies in countries of Africa and Latin America, with emphasis on the countries indicated early. Fluent in English, Portuguese, and some knowledge of French. Duty station: Home country of the consultant.
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ANNEX 8 - Technological Packages from Cerrado to the Savannah Workshops. A INCORPORAO DAS SAVANAS NOS AGRO NEGCIOS DE GROS. PECURIA DE CARNE E LEITE, SUINOCULTURA E AVICULTURA NO BRASIL E LIOES APREENDIDAS PARA ANGOLA
1.
ANTECEDENTES
As savanas em Angola esto estabelecidas em regies com variadas condies de clima, solos predominantemente ferralticos, pastagens naturais, abundantes recursos hdricos, enormes reas disponveis para desenvolver com sucesso a agricultura de gros, as pecurias de carne e de leite, a avicultura e a suinocultura. No passado, antes dos conflitos armados, j ocorreu em algumas regies do Planalto Central algum desenvolvimento agro pastoril em reas de savanas. Hoje nota-se um importante retomar dessas actividades em reas de savanas ainda que com muitos constrangimentos. Com o retomar do desenvolvimento rural reas novas sero incorporadas aos vrios processos de produo, principalmente se estiverem prximas de cidades, com acesso por boas estradas e principalmente se estiverem com uma baixa ocupao populacional. No Brasil, os sistemas de produo agro pecuria nas savanas so variados, as tecnologias provadas e disponveis como o uso de calcrios, podendo ser usadas, em Angola, com as adequaes pertinentes feitas por profissionais competentes. Em termos econmicos, l, tanto a pecuria de carne e leite quanto os cultivos de milho, soja, feijo e sorgo so rentveis, pois, seus produtos e derivados tm grande demanda nos principais mercados nacionais e internacionais. Pois, significantes exportaes de gros farelos, leos de soja e carnes bovina, suna e de aves so oriundas da regio dos cerrados ou seja a savana brasileira; a se produz cerca de 57% da produo nacional agro-pecuria. O que muito relevante indicar que nessa regio, relativamente vazia e inexplorada h alguns anos, ocorreu a grande expanso da fronteira agropecuria brasileira, sem grandes conflitos sociais por ser uma grande rea relativamente ociosa. Mas, cabe destacar que o desenvolvimento tecnolgico gerado pelos investigadores da Embrapa foi um dos grandes determinantes que viabilizaram essa enorme expanso, pois, antes disso, o agricultor brasileiro no sabia fazer agricultura nos cerrados, como ocorre hoje com o agricultor angolano nas savanas. Por outro lado, outras polticas governamentais especficas como o Prodecer, e circunstncias favorveis, como a disponibilidade de estradas, acesso a mercados de insumos e produtos bem como a migrao de produtores com tradio em agricultura e pecuria, de vrias outras regies brasileiras, associados em cooperativas, tambm contriburam para viabilizar esse caso de sucesso. Em Angola, iniciativas pioneiras j ocorrem com alguns empresrios angolanos inovadores, que esto a desenvolver agropecuria em alguns solos de savana, os tradicionais solos ferralticos. Eles uma tima estrutura ainda que uma limitada fertilidade, mas essa pode ser melhorada como se mostrar no seminrio em referncia e usada com sisteemas de produo, tecnologias e sementes que investigadores brasileiros levaram muitos anos para desenvolver e os investigadores e agricultores angolanos podero testar e adaptar em pouco tempo. 2. OBJECTIVOS
Com esta perspectiva de viso de futuro o MINADER, atravs do seu Gabinete de Estudos, Planejamento e Estatsticas, considerou relevante promover a realizao de um seminrio sobre o desenvolvimento passado dos cerrados brasileiros e futuro das savanas em Angola. que tambm contar com o apoio tcnico da FAO. Nesse evento sero desenvolvidas anlises detalhadas dos elementos fundamentais desse caso de sucesso, inclusive a importante
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cooperao internacional que foi desenvolvida com o Japo que a poca estava interessado em promover a produo de soja e outros gros em reas novas. em outros pases com ambiente favorvel para agricultura tropical. Os desenvolvimentos bem sucedidos da incorporao das savanas na agro pecuria no Brasil, so muito importantes em termos de gerao de empregos, rendas e divisas com exportaes. As apresentaes e estudo desse caso naquele pas permitiro aos empresrios, tcnicos e autoridades angolanas conhecer experincias positivas que sero relevantes para o relanamento e desenvolvimento das savanas em Angola. A anlise das engenharias poltica, financeira, de produo, comercial e de logstica envolvidas nesse notvel empreendimento bem como o aprendizado de lies tcnicas e econmicas tambm esto entre os objectivos da realizao desses eventos. Para alm disso, o seminrio tambm permitir discutir iniciativas actuais, futuras e estratgicas para Angola, nas reas de desenvolvimento de plos de produo usados na incorporao dos cerrados brasileiros e em uso na promoo da agropecuria angolana. Todos esses elementos devem constar de uma agenda futura para o desenvolvimento rural sustentvel no pas, considerando as oportunidades no seu mercado interno e tambm nos mercados regionais e internacionais. 3. 4. LOCAL E DATA PROVVEL BENEFICIRIOS Luanda, a definir, em fins de 2008
Criadores pequenos, mdios e grandes sero os beneficirios principais desse evento. Mas entre outros importantes beneficirios estaro empresrios, tcnicos e autoridades governamentais que formulam polticas e programam iniciativas que promovem vrios subsectores. Estima-se que 100 beneficirios directos e outros 150 indirectos sero beneficiados pelo referido seminrio. relevante destacar que os dois biomas, cerrados no Brasil e savanas em Angola, so muito semelhantes. H alguns anos atrs eles foram analisados por investigadores da Embrapa que estiveram em Angola, trazidos pela FAO e vrias caractersticas comuns foram identificadas, principalmente nas savanas com solos ferralticos e isso inclui grandes reas onde vivem milhares de produtores angolanos que poderam ser beneficirios desse empreendimento estratgico. tanto para a pecuria como para a agricultura, a avicultura, suinocultura e fruticultura tropical. 5. ELEMENTOS DESSES AGRONEGCIOS
O seminrio ser apresentado usando-se uma abordagem de estudos de casos, analisando aspectos polticos, financeiros, de produo, comerciais e logstica usadas na incorporao de uma enorme rea, antes ociosa, ao processo de produo agrcola e pecuria em vrias regies brasileiras nas quais se produz cerca de 57% da agropecuria brasileira e so gerados milhares e emprego e muita renda. Tambm ser desenvolvido um benchmark com anlises tcnicas e econmicas comparats. Todas essas apresentaes e consideraes sero realizadas por profissionais muito competentes e tambm com muita experincia prtica em desenvolvimento rural. Em adio, sero analisadas as trs principais etapas dessas pecurias, ou seja, a fase de cria, a fase de recria e a de engorda que representam diferentes especializaes e tm rentabilidade distintas
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Em termos de agronegcios sero examinadas as engenharias de produo, comercial, financeira e de logstica com seus principais factores positivos e suas principais limitaes. Isso inclui discusses sobre os papis do Governo e do sector privado. Para complementar essas anlises um grupo selecto de painelistas analisar e discutir com os participantes as oportunidades, aspectos positivos, fraquezas e ameaas desses agronegcios em Angola. 6. PROGRAMAO DOS EVENTOS
A Incorporao dos Cerrados no Processo Produtivo da Agropecuria Brasileira, o Potencial das Savanas no Desenvolvimento da Agropecuria e lies apreendidas para Angola Palestra l . Decises Estratgicas e Polticas Governamentais Palestra 2: Condies edafoclimticas e caracterstica do Bioma Palestra 3: Sistemas de produo intensivos e extensivos predominantes Palestra 4: Sistemas de processamento, distribuio e comercializao Palestra 5: Principais actores pblicos e privados governamentais Palestra 6: Actuaes relevantes do sector privado. ( A binacional CAMPO, associaes de produtores, cooperativas) Debate: Lies apreendidas, experincias vlidas e recomendaes para o desenvolvimento rural em Angola. 7. EQUIPA TCNICA
A coordenao tcnica do evento ser feita por dois tcnicos do GEPE eventualmente apoiados por veterinrios, agrnomos e economistas do MINADER. Quatro especialistas brasileiros, com renome, sero convidados como palestrantes nas seguintes especializaes: a) as estratgias e polticas governamentais para a explorao sustentvel da agropecuria nas savanas; b) sistemas de produo de gros, carne, leite, aves, sunos e fruta nas savanas; c) sistemas de comercializao e exportao desses produtos agro-pecurios; d) benefcios econmicos e sociais resultantes da incorporao das savanas no processo produtivo agro-pecurio e suas externalidades. Cinco destacados tcnicos, produtores e/ou empresrios angolanos que desenvolvam actividades pecurias sero convidados para participar no painel de debatedores.
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8.
ORAMENTO
Despesas com palestrantes (4) especialistas brasileiros (4) especialistas brasileiros
(20) dirias de USD250,00 (20) honorrios de USD250,00
USD5.000,00 USD5.000,00.
Despesas com passagens areas: (4) passagens Braslia-So Paulo-Joanesburgo
USD3500,00
USD14.000,00.
Despesas com alimentao, (200 pes) salgados, doces, refrigerantes e caf : USD2000,00 Depesas com material de apoio (Vrios) fotocpias, papel, canetas, pastas para o seminrio: Despesas eventuais Total
USD2.000,00
USD2.000,00 USD1.000,00 USD29.000,00
9.
ACES DE SEGUIMENTO
As apresentaes e discusses ocorridas durante o seminrio sero registradas e conformaro documentos a serem publicados pelo GEPE, como contribuies s suas anlises sobre as fileiras do agronegcio em Angola, As experincias com eventos semelhantes tm indicado que vrias repercusses positivas ocorrero aps os seminrios onde vnculos de amizade, tcnicos e comerciais so estabelecidos. A anlise de aspectos positivos e negativos deixar vrias externalidades para ofuturo das savanas em Angola que tm um enorme potencial a viabilizar.
O AGRONEGCIO DA AVICULTURA DE CARNE E DE OVOS NO BRASIL E LIOES APREENDIDAS PARA ANGOLA
1.
ANTECEDENTES
O agro negcio da avicultura pode ser promissor em Angola. O pas tem excelentes condies de clima, solos, recursos hdricos, enormes reas disponveis para desenvolver com sucesso as aviculturas de carne e de ovos com base em uma importante reactivao da produo de milho, sorgo e com o crescente lanamento do cultivo da soja. Nos pases onde a avicultura importante tambm muito relevante o cultivo de gros para a produo de raes que podem representar cerca de 70% do custo de produo dos frangos e ovos No passado, antes dos conflitos armados, em Angola a produo de aves e ovos j ocorreu em algumas regies e hoje nota-se um importante retomar dessas actividades, a nveis de produtor familiar e empresarial. As tecnologias de produo avcola comercial existentes em vrios pases so variadas, provadas e disponveis podendo ser usadas, em Angola, com as adequaes pertinentes feitas por profissionais competentes. Em termos econmicos, tanto a avicultura empresarial de carne
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quanto a de ovos podem ser rentveis, pois, seus produtos so relativamente escassos nos principais mercados nacionais. As demandas por frangos e ovos, em diferentes segmentos da populao angolana so crescentes. O consumo de frango e de ovos popular. Os preos desses produtos so relativamente mais baratos que a carne bovina. No interior do pas o consumo de galinhas nativas e de seus ovos tambm est a crescer nas principais cidades angolanas. A demanda por carne de aves e ovos tambm crescer muito com o desenvolvimento econmico do pas que est a ser promovido pelo Governo e com programas especficos de cooperao tcnica e econmica internacional. Por outro lado, iniciativas de aumento de oferta avcola j ocorrem com alguns empresrios angolanos inovadores, que esto a promover iniciativas importantes e inclusive j existe uma associao angolana de avicultura e alguns investimentos significativos tm sidofeitos pelo sector privado. Outro antecedente importante a destacar a tradio angolana com a avicultura tradicional que tem grande potencial para receber pequenas inovaes com grandes relaes benefcio custo, principalmente nas temticas de introduo de reprodutores melhoradores, no tema de controlo de doenas e uso complementar de raes locais melhoradas. 2. OBJECTIVOS
Diante dessa realidade, o MINADER, atravs do seu Gabinete de Estudos, Planejamento e Estatsticas, considerou relevante promover a realizao de um seminrio sobre esse agro negcio que tambm contar com o apoio tcnico da FAO. Nesses evento sero apresentadas anlises comparativas com os desenvolvimentos bem sucedidos da avicultura de carne e ovos no Brasil, onde ambos negcios so muito importantes em termos de gerao de empregos, rendas e divisas com exportaes. As apresentaes e estudos dos casos daquele pas permitiro aos empresrios, tcnicos e autoridades angolanas conhecer experincias positivas que sero relevantes para o relanamento e desenvolvimento dessas iniciativas em Angola. O modelo muito bem sucedido da integrao entre uma empresa ncora e seus produtores integrados ser analisado. Ela lidera o negcio, prov tecnologia, assistncia tcnica, insumos como os pintos, raes, medicamentos e posteriormente abate e comercializa as aves e ovos, ser bem discutido. A anlise de outras experincias e o aprendizado de lies tcnicas e econmicas tambm esto entre os objectivos da realizao desse evento. Para alm disso, os seminrios tambm permitiro examinar sistemas de produo promissores para Angola, nas temticas de gentica, reproduo, alimentao, maneio e sanidade. Outro tema de muita relevncia para o sucesso desse agro negcio a produo de gros de forma competitiva, para a produo de raes que podem representar 75% do custo total. Todos esses elementos devem constar de uma agenda futura para o desenvolvimento sustentvel da avicultura no pas, considerando as oportunidades no seu mercado interno e tambm nos mercados regionais e internacionais. 3. 4. LOCAL E DATA PROVVEL - Luanda, a definir, nofinal de 2008 BENEFICIRIOS
Pequenos, mdios e grandes criadores sero os beneficirios principais desse evento. Mas entre outros importantes beneficirios estaro empresrios, tcnicos e autoridades governamentais que formulam polticas, programas e iniciativas que promovem esse subsector. Estima-se que 100 participantes directos e 150 indirectos sero beneficiados pelo referido seminrio. relevante destacar que tanto a avicultura de carne quanto a de ovos so negcios divisveis, que podem comear relativamente pequenos e ir crescendo conforme as possibilidades, habilidades e capacidades do produtor ou grupo de criadores. Em vrios pases produtores, o modelo de integrao, entre uma empresa principal e vrios produtores integrados, tem permitido com
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sucesso a participao de associaes de criadores e de cooperativas nesse agro negcio, o que notvel e lhe d viabilidade tcnica e econmica. 5. ELEMENTOS DESSES AGRONEGCIOS
O seminrio ser apresentado usando-se uma abordagem de estudos de casos da avicultura de carne e ovos nas principais regies produtoras brasileiras, com referncias ao qule pode ocorrer em Angola. Tambm ser desenvolvido um benchmark com anlises tcnicas e econmicas comparativas. Todas essas apresentaes e consideraes sero realizadas por profissionais muito competentes e tambm com muita experincia prtica nesses agronegcios, em termos de seus pilares fundamentais: gentica, reproduo, alimentao, maneio e sanidade. Em adio, sero analisadas as principais etapas da avicultura de carne, ou seja, a fase de reproduo e a fase de recria e engorda que representam diferentes especializaes e tm rentabilidades distintas Em termos de agronegcios sero examinadas as engenharias de produo, comercial, financeira e de logstica com seus principais factores positivos e suas principais limitaes. Isso inclui discusses sobre os papis do Governo e do sector privado. Para complementar essas anlises um grupo selecto de painelistas analisar e discutir com os participantes as oportunidades, aspectos positivos, fraquezas e ameaas desses agronegcios em Angola. 6. PROGRAMAO DOS EVENTOS
23/11/08 O agronegcio da avicultura de carne e ovos no Brasil e lies apreendidas para Angola Palestra 1: Condies edafoclimticas e principais raas Palestra 2: Sistemas de produo intensivos e extensivos predominantes Palestra 3: Sistemas de processamento, distribuio e comercializao Palestra 4: Principais polticas governamentais para o sector Palestra 5: Actuaes relevantes do sector privado (empresas integradoras) Debate: Lies apreendidas, experincias vlidas e recomendaes para a avicultura de corte em Angola 7. EQUIPA TCNICA
A coordenao tcnica do evento ser feita por dois tcnicos do GEPE eventualmente apoiados por veterinrios, agrnomos e economistas do MINADER. Trs especialistas brasileiros, com renome, sero convidados como palestrantes nas seguintes especializaes: a) sistemas de produo de carne e ovos; b) sistemas de processamento, distribuio e comercializao; c) sistemas de integrao e politicas governamentais para a avicultura.
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Cinco destacados tcnicos, produtores e/ou empresrios angolanos que desenvolvam actividades avcolas sero convidados para participar no painel de debatedores. 8. ORAMENTO
Despesas com palestrantes (3) especialistas brasileiros (3) especialistas brasileiros
(15) dirias de USD250,00 (20) honorrios de USD250,00
USD3.750,00 USD3.750,00.
Despesas com passagens areas: (3) passagens BSB-SP-JNSB-Luanda
USD3500,00
USD10.500,00.
Despesas com alimentao, (200 pes) salgados, doces, refrigerantes e caf: USD2000,00 Depesas com material de apoio (Vrios) fotocpias, papel, canetas, pastas para o seminrio: Despesas eventuais Total
USD2.000,00
USD2.000,00 USD1.000,00 USD23.000,00
9.
ACES DE SEGUIMENTO
As apresentaes e discusses ocorridas durante o seminrio sero registradas e conformaro documentos a serem publicados pelo GEPE, como contribuies s suas anlises sobre as fileiras do agronegcio em Angola, As experincias com eventos semelhantes tm indicado que vrias repercusses positivas ocorrero aps os seminrios onde vnculos de amizade, tcnicos e comerciais so estabelecidos. A anlise de aspectos positivos e negativos deixar vrias externalidades para ofuturo da avicultura de ovos e corte no pas que tm um enorme potencial a viabilizar. Destacar a importncia desses empreendimentos tomarem em conta o desenvolvimento da agricultura de gros para a produo de raes a preos competitivos, o modelo de empresa integradora com produtores integrados e diferentes sistemas de produo maia ou menos intensos no uso de tecnologia, mo-de-obra e capital.
PROPOSTA DE PROGRAMA NACIONAL DE BIOCOMBUSTIVEIS DE ANGOLA
ANTECEDENTES E JUSTIFICATIVA 1. Angola dispoe de um imenso territorio com diferentes condies agro ecolgicas que permitem o cultivo de variadas especies vegetais. A predominncia de
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pequenos agricultores tradicionais dedicados a culturas alimentares tem sido fundamental para o aumento da produo, com vista ao aumento da segurana alimentar. O uso sustentvel dos recursos naturarais de Angola, mediante um processo de intensificao e diversificao da produo agrcola, pecuria e florestal, condio essencial para o aumento do bem estar dos agricultores, suas familias e dos habitantes do meio rural e da sociedade em geral. Entretanto, tal processo dever fazer parte de uma estratgia de desenvolvimento, tendo em cont lies de experincias de outros pases de agricultura tropical e nos principios que assegurem a sustentabilidade do desenvolvimento agrrio, com incluso social. 2. Por outro lado, nos ultimos anos notou-se um interesse mundial e crescente no desenvolvimento dos biocombusiveis para os quais Angola tem um grande potencial.Diante desta percepo, o Governo preparou e aprovou no decorrer de 2008, uma estratgia e uma legislao para o desenvolvimento dos biocombusiveis am Angola, atravs de um processo de consultas interministeriais liderado pelo Ministrio do Petroleo, com intensa participacao do MINADER como orgao responsavel pela produo das matrias primas. O passo seguinte consistir na preparao de um Programa Nacional de Desenvolvimento de Biocombustiveis PNDB - que incluir as fileiras completas relacionadas aos biocombustiveis, incluindo produo, processamento, estocagem, transporte e comercializao. 3. Neste contexto, no mes de Agosto de 2008, a FAO foi solicitada a apoiar na preparao e implementao do dito Programa e como resultado foi preparada a proposta apresentada neste documento. II. OBJECTIVOS
O objectivo geral do PNDB ser o de contribuir para a viabilizao do desenvolvimento sustentavel das diversas fileiras de biocombustiveis, com vista ao desenvovimento rural e a reduco da pobreza. Em termos especificos o Programa ter os seguintes: Objectivo 1: Identificacao dos potenciais e definicao das informacoes necessarias para embasar o Programa: 9 Estudos das fileiras produtivas e dos seus repectivos mercados (local, nacional e internacional) 9 Elementos necessarios para garantir uma contribuicao positiva dos biocombustivies ao desenvolvimento rural (emprego, renda e accesso a energia) 9 Caracterizacao dos potenciais agro ecolgicos e energeticos das diversas zonas agroecologicas e materias primas 9 Caracterizao das matrizes energeticas das diversas fileiras de biocombustiveis Objectivo 2:: Preparacao de um guio para orientar as decisoes de investimentos publicos e privados no ambito de garantir a sustentabilidade dos ditos investimentos 9 Identificacao das areas adequadas para a producao de materias primas para os biocombustiveis 9 Desenvolvimento de mecanismos participativos de decisao sobre as modalidades de investimentos nas fileiras de biocombustiveis
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9 Definicao da estrutura de incentivos e o controlo dos investimentos nos biocombustiveis 9 Definicao dos elementos de viabilidade tecnologica, financeira, mercadologica e social Objectivo 3: Experimentacao nos diversos aspectos das fileiras dos biocombustiveis, por exemplo: 9 Adaptacao e melhoramento das tecnicas de producao e processamento da materia prima, incluindo integracao com outras actividades produtivas do meio rural 9 Experiencias pilotos da producao de biocombustiveis em pequena escala 9 Teste de metodologias de certificacao, com vista as exigencias dos mercados Objectivo 4: Gestao de conhecimentos e formacao de capacidades 9 Desenvolvimento de pesnamento colectivo 9 Fortalecimento do fluxo de informacao e comunicacao sobre temas pertinentes ao desenvolvimento de biocombustiveis 9 Accoes de sensibilizacao, treinamento de capacidades, viagens de estudos e licoes de boas practicas
III.
COMPONENTES E INDICACOES DE ACTIVIDADES DO PROGRAMA
Componente 1: Identificacao dos potenciais e definicao das informacoes necessarias para embasar o Programa: 9 Estudos das fileiras produtivas e dos seus repectivos mercados (local, nacional e internacional) 9 Elementos necessarios para garantir uma contribuicao positiva dos biocombustivies ao desenvolvimento rural (emprego, renda e accesso a energia) 9 Caracterizacao dos potenciais agro ecolgicos e energeticos das diversas zonas agroecologicas e materias primas 9 Caracterizao das matrizes energeticas das diversas fileiras de biocombustiveis Objectivo 2:: Preparacao de um guio para orientar as decisoes de investimentos publicos e privados no ambito de garantir a sustentabilidade dos ditos investimentos 9 Identificacao das areas adequadas para a producao de materias primas para os biocombustiveis 9 Desenvolvimento de mecanismos participativos de decisao sobre as modalidades de investimentos nas fileiras de biocombustiveis 9 Definicao da estrutura de incentivos e o controlo dos investimentos nos biocombustiveis 9 Definicao dos elementos de viabilidade tecnologica, financeira, mercadologica e social Objectivo 3: Experimentacao nos diversos aspectos das fileiras dos biocombustiveis, por exemplo:
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9 Adaptacao e melhoramento das tecnicas de producao e processamento da materia prima, incluindo integracao com outras actividades produtivas do meio rural 9 Experiencias pilotos da producao de biocombustiveis em pequena escala 9 Teste de metodologias de certificacao, com vista as exigencias dos mercados Objectivo 4: Gestao de conhecimentos e formacao de capacidades 9 Desenvolvimento de pesnamento colectivo 9 Fortalecimento do fluxo de informacao e comunicacao sobre temas pertinentes ao desenvolvimento de biocombustiveis 9 Accoes de sensibilizacao, treinamento de capacidades, viagens de estudos e licoes de boas practicas Caracterizao dos potenciais para o biodiesel/bioalcol em base aos dados agroecolgicos e ao balano energtico das principais matrias primas contempladas. Isso em torno incluiria as seguintes tarefas:
Utilisar a informao existente acerca de dados agroecologicos e adapata-los para que possam ser utilisados como instrumentos de planeamento e deciso ao nivel no s nacional, mas tambem provincial. Isso poderia ser feito bastante rapidamente por exemplo pelo MINADER e o Instituto Geografico Nacional, com apoio da FAO ; Elaborar balanos enegticos das principais matrias primas contempladas. Aqui deveria se tomar em conta diferentes itinerarios tecnolgicos porque obviamente estes influyem o balano energtico Esta tarefa e bastante complexa e detalhada. Por isso, na minha opinio, ela deveria ser efectuada com o apoio de pericia do exterior Talvez um perito brasileiro seria o melhor palpite porque a FAO no e muito especializada a esse respeito - A FAO so daria um parecer tocante a esta tarefa; Em base aos dados agroecologicos e balanos energticos, identificar e mapear os potencias tocantes ao biodiesel (e idealmente bioalcol) a nivel nacional e por provincia.
2. Proviso de informaes e, se for solicitado, opinies por parte dea FAO: Como falamos, eu me comprometo a mandar qualquer informao disponivel sobre os diversos temas ligados ao biodiesel/bioalcol. E conselhavel que os pedidos sejam os mais claros possiveis e tambem seria necessario aceitar que as informaes possam ser mandadas em ingles ou portugues porque eu no terei tempo de traduzi-las em portugues.Isso poderia ser realisado mesmo sem nenhum projecto, ja que faz parte do mandato da FAO e mais particularmento do meu como coordenador do assunto de bioenergia. 3. Trabalho sobre a questo juridica que voc colocou durante a nossa conversa. sera que precisamos de duas legislaes separadas, uma para o bioaalcol e outra para o biodiesel? Como falamos, a primeira vista, ambos a Dr Calegar e eu pensamos que no porque problmatica e mais ou menos similar. Porem seria talvez necessario aprofundiar esta questo e um ponto de vista tcnico, mas tambem de um ponto de vista juridico.A respeito a este ultimo ponto, eu vou falar com os meus colegas du Unidade Juridica da FAO, que realizou recentemente um estudo comparativo de
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legislaes sobre bioenergia em diversos paises. O Ao meu ver, o Dr Norman poderia tambem dar uma opinio, como perito juridico do MINADER. 4. Aces pilotos: Elas poderiam incluir
Experimentao agronmica sobre sistemas de produo integram produo de energia e produo de alimentos. Aqui existe um vinculo com a questo da investigao agaria. Poderiamos contemplar o envolvimento de colegas do Departamento de Agricultura da FAO neste tipo de trabalho expriencias pilotos sobre sistemas de produo de biodiesel/bioalcol em pequena escala/descentralisados. Como falei eu posso regularmente mandar informaes sobre este tipo de iniciativa em diversos paises da Africa, e tambem uma proposta de projecto de apoio a pequenos agricultotres e mecanicos tocante a produo de olio de demdem e uso directo nos motores que preparei para o Congo-Kinhasa. Em base a isso poderiamos ver como avanar nesse respeito em Angola.
5. Crear um mecanismo de pensamento collectivo sobre biodiesel/bioalcol em Angola, incluindo representantes do sector empresarial, de ONGs a vocao de desenvolvimento rural, dos pequenos agriculores, do sector univrsitario dos orges pertientes do Governo, e de parceiros do desenvolvimento interessados (incuindo a FAO, se for necesario atrav de tele ou vieo conferencia). Acreditamos que este processo ajudara muito na aceitao e refleco ao nivel do pais sobre a probmatica complexa e sensivel da bioenergia em Angola. Actividades desse grupo poderia incluir:

paineis tmaticos em que se faria uma apresentao seguida de discusso e documentao dos pontos mais salientes. proviso eventual de uma opinio sobre uma ou outra proposta de iniciativa tocante ao biodiesel-bioalcol.
Como falamos, seria muito util poder trabalhar sobre ambos o biodiesel e o bioalcol. Porem, isso necessitaria uma aproximao muito mais forte enre o MINADER e o Ministrio do Petroleo. Uma signalizao ao nivel supra-Minsiterial nesse sentido, ou pelo menos para pedir cautela e mais consulta por parte do Ministrio do petroleo, parece pertinente. No que diz respeito a opercionalizaa do apoio da FAO tocante as componentes indicadas acima, a nossa percepo e que estas no podem ser todas incluidas no presente UTF de apoio ao GEPE, porque elas requerrem recursos em tempo e fundos importantes que vo alem do que se pode contemplar numa simples reviso orcamentaria deste UTF. Por isso deveria contemplar um projecto separado. Nesse sentido poderiamos pensar em comear a trabalhar sobre a elaborao de tal projecto via e-mail e finalisar o projecto durante a minha proxima misso em Angola, prevista para maio-junho no contexto do lanamento do projecto sobre a reorganizao do MINADER Bastaria acresecentar alguns dias para realisar esta tarefa
ELEMENTOS ADICIONAIS
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Com esta mensagem gostaria de mandar lhes documentos que me parecem muito pertinentes a refleco sobre uma estrategia biocombustivel para Angola: Os primeiros documentos (em arquivo zip) tratam dos documentos pertinentes a bioenergia da conferencia de alto nivel de junho 2008 da FAO sobre o tema "Segurana alimantar: Os desafios da mudana climatica e da bioenergia"- verso inglesa e francesa Tambem mando a verso curta e comprida de um paper do Instituto inles ODI sobre os vinculos entre biocombustivel e luta contra a pobresa Penso que estes documentos deveriam ser tomados em considerao como fontes imprtantes de orientao no que diz respeito a estrategia biocombustivel - mais particularmente o box 1 e a parte sobre os tes scenarios do documento ODI e o anexo do documento FAO sobre un quadro internacional sobre bioenergia. Nesse sentido talves valeria a pena traduzir a verso curta do documento ODI e o anexo do documento FAO em portugues. As quatro engenharias de desenvolvimento do Dr Vilas (produo, financeira, logistica e comercial) tambem ajudariam a orientar a refleco Tudo isso e importante quando ja se esta na parte de decidir o que fazer e como fazer lo. Porem penso que ANTES de isso parece me muito importante perguntar se porqu fazer um desenvolvimento de biocombustivel., particularmentoe num pais productor de petroloeo como Angola. Parece logico abordar esta questo a partir dos quatro objectivos habituais de produo de biocombustivel - ou seja autonomia energetica, beneficios ambientais, desemnvolvimento rural e diverificao das exportaes a) Autonomia energetica E bom ver o problema a dois niveis, nacional e local * Nivel nacional: Sera que Angoila, como productor de petroleo, precisa de autonomia energetica? Se o problema tem que ver com uma fraca capacidade de refinao, sera que desenvolver biocombustivel traria mais vantagens que aumentar essa mesma capacidade de refinao do petroleo? Aqui uma analise comparativa me parece pertinente * Nivel local: Se o alto preo do combustivel fossil constitui um constrangimento forte para o desenvolvimento em muitas areas rurais, qual e o caminho a seguir para um pais productor de petroleo como Angola? Trazer o petroleo nas areas rurais o desenvolver biocombustivel para ter mais autonomia energetica nas areas rurais - ou combinar os dois. Mesmo se escolhemos a segunda opo, qual e a vantagem do biocombustivel comparado com outras energias renovaveis, como a energia solar que ja esta sendo implantada no Huambo - veja articulo em arquivo vinculado Em resumo, tanto ao nivel nacional que local, o pertinencia de desenvolver biocombustivel para aumentar autonomia energetica tem que ser encarrada no de maneira isolada mas como parte de uma estrategia nacional de energia, que inclui petroleo, energias renovaveis como o biocombustivel, rede eletcrica, etc b) Beneficios ambientais Depois de uma fase muito positiva sobre as vantagens ambientais dos biocombistiveis,
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chegou se agora a concluso que os beneficios ambientais dos biocombustiveis so esto asseguadas na fase de consumo, o seja comparados com os impactos do consumo de petroleo. No que diz respeito a fase de produo e processamento dos biocombustiveis, claro que tudo depende da materia prima e dos proprios processos de produo, mas existem mais e mais duvidas que em muitos casos, esse processo de produo consome mais energia e emite mais gases de efeito estufa do que se poderia poupar pela utilisao de biocombustiveis. Francamente, na minha opinio no existe justifcao ambiental suficente para justificar um programe de biocombustivel de grande porte a nivel nacional para Angola. Ou seno seria necessaria garantir quea produo sera efectuada com tecnicas agronomicas que poupam energia e redusem a emio de gases de efeito estufa. Sera que podemos garantir isso? c) Desenvolvimnento rural Aqui precisa se tomar em conta tres aspectos: gerao de renda, gerao de emprego e maior autonomia energetica nas areas rurais. * Gerao de renda: Isso requere uma boa integrao dos pequenos productores no mercado - o seja nas fileiras agro-pecuarias. Ento seria necessaria fazer uma analise compapartiva entre as diferentes fileiras agro-pecuarias, incluidas aquelas referentes a biocombustiveis, e assegurar que elas se complementam e no competem. Tambem e preciso ser muito realista e saber que os problemas das fileiras de biocombustivel so muitas veses semelhantes as outras fileiras e que muito progresso e necessario em Angola para que estas filaieras beneficiem ao pequeno agricultor . * Emprego: de novo aqui e preciso comparar as oportunidades ofertas pela diferentes fileiras agro-pecuarias, tambem como fazer uma analise comparativa entre as diferentes modalidades de implementao (i) empresa de grande porte com suas proprias terras, (ii) contratos entre empresa de processamento e pequenos productores que abastecem a usina de biocombustivel e (iii) desenvolvimento de biocombustivel em pequena escala/escala de aldeias, atraves de organizaes de productores . Tambem e importante poder garantir condies de trabalho decentes no cao (i) e que os contratos sejam justos e cumpridos - grandes desafios em muitos paises em vias de desenvolvimento. * Maior autonomia energetica nas areas rurais: Aqui agente volta a questo de autonomia energetica a nivel local que falei no ponto a) acima Claro que todos esses objectivos deveriam ser alcanados sem ameaar segurana alimentar e na medida do pissvel deveriam contribuir a reduo da pobresa no meio rural d) Diversificaco das exportaes Claro que esse objectivo so sera satisfeito se exitirem mercados de exportao do biocombustivel. Quais seriam esses mercados? * Zona SADC: Muito depende dea medida em que os outros paises da zona SADC vo eles proprios desenvolver biocombustivel * Mercado Europeio: Tudo depende da votao da norma da Comunidade Europeia segundo aqual 5,75 % do combustivel devera ser biocombustivel em 2010 tal percentagem seria de 10% em 2020. Esta norma esta sendo muito criticada, ate por certos paises poderosos da propria Comunidade Europeia, como Reino Unido, Allemagna e Paises Baixos. O voto sera em junho mais eu penso que no sera adoptada como tal . Talvez passara com modifica ou talvez nem passara.
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* Japo: para ajudar a Petrobras a satisfazer o contracto que tem com esse pais. Angola ja foi contactada por essa empresa a esse respeito? Se for o caso que garantia de mercado se o Brasil aumentar muito a sua propria capacidade de abastecimento? * Paises emergentes como China e India: Sera que eles contactaram Angola nesse respeito? Ou seja, neste momento, parece que no exitem muitas garantias de mercado externo suficientes para justificar uma estrategia nacional Talvez as minhas consideraoes contenham erros, por falta de conhecimento suficiente da situao em Angola. Mesmo assim, penso que e muito importante responder a perguna porque fazer biocombustivel em Angola antes de tentar analisar o que fazer e como fazer lo. Em base a minha argumentao, se eles no existirem, penso que antes de lanar se na elaborao de estrategia biocombustivel em Angola, seria pertinete fazer alguns estudos preparatorios para ver se tal desenvolvimento tem justificao e se for o caso, definir para realisar quais dos quatro objectivos menionados acima e em que escala? na minha opinio, no minimo seria necessario fazer os seguintes estudos: Biocombustivel no contexto duma estrategia nacional de energia para Angola, a nivel nacional e a nivel local Vantagens dos biombustiveis em comparao com outros productos agropecuarios no que diz respeito a gerao de renda, gerao de empregos, maior autonomia energetica e segurana alimentar Qual o mercado alvo? nacional, local e/ou externo. Que garantias de mercado e que vantagens comparativas e barreiras em cada caso?
OS AGRONEGCIOS DA PECUARIA DE CORTE E DE LEITE NO BRASIL E LIOES APREENDIDAS PARA ANGOLA
1.
ANTECEDENTES
Angola tem excelentes condies de clima, solos, pastagens naturais, recursos hdricos, enormes reas disponveis para desenvolver com sucesso as pecurias de carne e de leite. No passado, antes dos conflitos armados, isso j ocorreu em algumas regies do pas e hoje nota-se um importante retomar dessas actividades. As tecnologias e sistemas de produo pecuria so variados, provadas e disponveis podendo ser usadas, em Angola, com as adequaes pertinentes feitas por profissionais competentes. Em termos econmicos, tanto a pecuria de carne quanto a de leite so rentveis, pois, seus produtos so relativamente escassos nos principais mercados nacionais. Em bons restaurantes um fil ou uma picanha maturada, geralmente importadas, custam caro. O popular churrasco de carne bovina, relativamente mais barato em pases produtores de carne, tambm escasso e caro nas principais cidades angolanas. A demanda por leite tambm grande e crescer muito se o Governo lanar programas de alimentao infantil que incluam o uso do leite. Por outro lado, iniciativas de aumento de oferta j ocorrem com alguns empresrios angolanos inovadores, que esto a trazer reprodutores bovinos de excelente qualidade de outros pases, onde as pecurias de corte e leite so bem desenvolvidas em ambiente tropical, como no Brasil. Outro antecedente importante a destacar a tradio angolana com a pecuria tradicional que tem grande potencial para receber pequenas
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inovaes com grandes relaes benefcio custo, principalmente nas temticas de introduo de reprodutores melhoradores e no tema de introduo de pastagens, como as braquirias. 2. OBJECTIVOS
Neste contexto o MINADER, atravs do seu Gabinete de Estudos, Planejamento e Estatsticas, considerou relevante promover a realizao de dois seminrios sobre esses agronegcios que tambm contar com o apoio tcnico da FAO. Nesses eventos sero desenvolvidas anlises comparativas com os desenvolvimentos bem sucedidos das pecurias de carne e de leite no Brasil, onde ambos negcios so muito importantes em termos de gerao de empregos, rendas e divisas com exportaes. As apresentaes e estudos dos casos daquele pas permitiro aos empresrios, tcnicos e autoridades angolanas conhecer experincias positivas que sero relevantes para o relanamento e desenvolvimento dessas pecurias em Angola. A anlise de outras experincias e o aprendizado de lies tcnicas e econmicas tambm esto entre os objectivos da realizao desses eventos. Para alm disso, os seminrios tambm permitiro discutir iniciativas actuais e futuras significativas para Angola, nas reas de gentica, reproduo, alimentao, maneio e sanidade. Todos esses elementos devem constar de uma agenda futura para o desenvolvimento sustentvel desses agronegcios no pas, considerando as oportunidades no seu mercado interno e tambm nos mercados regionais e internacionais. 3. LOCAL E DATA PROVVEL Luanda, a definir, no final de 2008
4.
BENEFICIRIOS
I. Criadores pequenos, mdios e grandes sero os beneficirios principais desses eventos. Mas entre outros importantes beneficirios estaro empresrios, tcnicos e autoridades governamentais que formulam polticas e programam iniciativas que promovem esses subsectores. Estima-se que 100 beneficirios directos e outros 150 indirectos sero beneficados pelos referidos seminrios. relevante destacar que tanto a pecuria de carne quanto a pecuria de leite so negcios divisveis, que podem comear relativamente pequenos e ir crescendo conforme as possibilidades, habilidades e capacidades do produtor ou grupo de criadores. Em vrios pases produtores a participao de associaes de criadores e de cooperativas nesses agronegcios notvel e o viabiliza ainda mais.
5.
ELEMENTOS DESSES AGRONEGCIOS
Os seminrios sero apresentados usando-se uma abordagem de estudos de casos da pecuria de carne e leite nas principais regies produtoras brasileiras. Tambm ser desenvolvido um benchmark com anlises tcnicas e econmicas comparativas. Todas essas apresentaes e consideraes sero realizadas por profissionais muito competentes e tambm com muita experincia prtica nesses agronegcios, em termos de seus pilares fundamentais gentica, reproduo, alimentao, maneio e sanidade. Em adio, sero analisadas as trs principais etapas dessas pecurias, ou seja, a fase de cria, a fase de recria e a de engorda que representam diferentes especializaes e tm rentabilidade distintas
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Em termos de agronegcios sero examinadas as engenharias de produo, comercial, financeira e de logstica com seus principais factores positivos e suas principais limitaes. Isso inclui discusses sobre os papis do Governo e do sector privado. Para complementar essas anlises um grupo selecto de painelistas analisar e discutir com os participantes as oportunidades, aspectos positivos, fraquezas e ameaas desses agronegcios em Angola. 6. PROGRAMAO DOS EVENTOS
20/11/08 O agronegcio da pecuria de carne no Brasil e lies apreendidas para Angola Palestra 1: Condies edafoclimticas e principais raas Palestra 2: Sistemas de produo intensivos e extensivos predominantes Palestra 3: Sistemas de processamento, distribuio e comercializao Palestra 4: Principais polticas governamentais Palestra 5: Actuaes relevantes do sector privado (frigorficos, supermercados e asso ciaes de exportadores) Debate: Lies apreendidas, experincias vlidas e recomendaes para a pecuria de corte em Angola 21/11/08 O agronegcio da pecuria de leite no Brasil e lies apreendidas para Angola Palestra: Condies edafoclimticas e principais raas Palestra: Sistemas de produo intensivos e extensivos predominantes Palestra: Sistemas de processamento, distribuio e comercializao Palestra: Principais polticas governamentais Palestra: Actuaes relevantes do sector privado (cooperativas, supermercados e associaes de produtores) Debate: Lies apreendidas, experincias vlidas e recomendaes para a pecuria de leite em Angola 7. EQUIPA TCNICA
A coordenao tcnica dos eventos ser feita por dois tcnicos do GEPE eventualmente apoiados por veterinrios, agrnomos e economistas do MINADER. Quatro especialistas brasileiros, com renome, sero convidados como palestrantes nas seguintes especializaes: a) sistemas de produo de carne; b) sistemas de produo de leite; c) sistemas de comercializao de carne ; d) sistemas de comercializao de leite. Cinco destacados tcnicos, produtores e/ou empresrios angolanos que desenvolvam actividades pecurias sero convidados para participar no painel de debatedores. 8. ORAMENTO
Despesas com palestrantes (4) especialistas brasileiros (20) dirias de US$250,00 (4) especialistas brasileiros (20) honorrios de US$250,00 Despesas com passagens areas:
US$ 5.000,00 US$ 5.000,00.
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(4) passagens Braslia-So Paulo-Joanesburgo USD3500,00 Despesas com alimentao, (200 pes) salgados, doces, refrigerantes e caf : USD2000,00 Depesas com material de apoio (Vrios) fotocpias, papel, canetas, pastas para o seminrio: Despesas eventuais Total 9. ACES DE SEGUIMENTO
US$ 14.000,00. US$ 2.000,00 US$ 2.000,00 US$ 1.000,00 US$ 29.000,00
As apresentaes e discusses ocorridas durante os seminrios sero registradas e conformaro documentos a serem publicados pelo GEPE, como contribuies s suas anlises sobre as fileiras do agronegcio em Angola, As experincias com eventos semelhantes tm indicado que vrias repercusses positivas ocorrero aps os seminrios onde vnculos de amizade, tcnicos e comerciais so estabelecidos. A anlise de aspectos positivos e negativos deixar vrias externalidades para ofuturo das pecurias de leite e corte no pas que tm um enorme potencial a viabilizar.
Improving living conditions of small farmers in Angola Through a better production, processing and marketing of maize1 I. Background and rationale
Angola has a total area of 1.247 million km2 and a population of around 15 million inhabitants. The country is divided into 18 provinces. About 60 percent of the population is considered rural and 40 percent, urban. The latter is mostly located in the capital city of Luanda (4 million) and the port city of Benguela. More than 60 percent of rural population is concentrated in five provinces in the Central Plateau. Rich in oil and other mineral reserves and with an immense agricultural potential, Angola is, nevertheless, one of the poorest countries in the world, ranking 164 among 175 countries, according to the Human Development Index of UNDP for 2003. Most of the poverty can be related to the consequences of a 28-year civil war that disrupted all economic activity, destroyed most of the infrastructure and displaced millions of people. This contrast between a large economic potential and present overspread poverty is one of the main characteristics of Angola. Around 90 percent of agricultural production in Angola comes from small-holder farmers who could be characterized as peasant farmers. Commercial agriculture is still incipient (less than 3 percent of total farmers) and takes place mostly in areas around and between the two main cities of Luanda and Benguela. Being of a peasant nature, most of Angolan agriculture is rain fed. There are two main crop production systems in the country: the first one is based on cassava/maize/beans, predominating in the Northern Region and in parts of the Central Region; the second one is based on three cereals maize, sorghum, and millet covering most of the
Prepared in close collaboration with MINADER, IIA, IDA, EPUNGU, UNACA, INCER and FAO (TCA, AGS, AGP, SDR and FAO Office in Luanda).
1
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Central Region and the part of the Southern Region. Of the three cereals, maize is by far the most important because it is the one cultivated by the majority of Angolan rural populations in those regions. Before the conflicts, Angola was an important maize exporter. Almost 70 percent of maize production comes from the Central Plateau. Average yields have historically been less than 500 kg/ha (two cropping seasons), due to low-quality seeds, insufficient input supply (seeds, fertilizers, pesticides, tools), depleted soils, and lack of storage and marketing systems at the farm, village, and provincial levels. There is, however, potential for much higher yields: soils, although depleted of nutrients, have good physical structure and favorable topography; furthermore, rainfall tends to be sufficient and well distributed, which makes peasant agriculture in the area much less risky than in the rest of Southern Africa. Food insecurity and rural poverty in the area stem directly from two main factors. Firstly, agricultural practices are primitive, based on the hoe, with little use of plows and animals, leading to low yields. Harvests are not properly stored causing large post-harvest losses. Secondly, marketing systems and channels (including, of course, marketing infrastructures) for peasant production are extremely limited. Services such as applied research, extension, and credit are scarce or simply non-existent. The National Maize Value Chain (NMVC) lacks organization, integration and coordination. This project vision of success is described as follows: A value chain project, by focusing on maize as the main food and cash crop for the majority of small farmers in the Central Plateau of Angola and by improving its production and marketing activities, through improved technologies, support to research, extension and credit services, public, private and civil society institutional strengthening and information and data gathering and dissemination, succeeds, at the end of five year funding in bringing 200,000 poor peasant families out of poverty and food insecurity and in making them participants of commercial agriculture, with higher yields (from current average 500 kg/ha to 2000 kg/ha), incomes and levels of well being. The steps to achieve this vision will include: (a) liaise with relevant public and private sectors and civil society organizations involved in maize production and marketing systems in the provinces of Huambo, Bi, and Huila, in order to establish a network for improving organization, integration and coordination in the area of maize production, processing and marketing; (b) provide technical support to targeted farmers, processors and traders to improve production, processing and marketing for maize in the project area; (c) collect, process, analyze and disseminate relevant information to improve maize producers decisions on technologies available, support services by public and private organizations, marketing opportunities and risk-reducing management mechanisms; and (d) monitor and evaluate permanently project activities, vis--vis the targets, objectives, products, and outcomes envisaged by the project, to allow for timing feedback and project planning. II. Project objectives
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The project overall objective is to improve the production, processing and marketing capabilities of maize-producing small farmers, processors and traders in the selected provinces (Huambo, Bi, Benguela, Namibe and Huila), by providing them with better technologies, inputs, and services to the agents of NMVC, so that they become integrated to commercial agriculture, with higher value to their production and increasingly higher levels of incomes and overall well being. The project specific objectives are to: (i) promote and support maize production nation wide, with emphasis on the selected provinces of Huambo, Bi, Benguela, Namibe and Huila, through: (a) development of the maize value chain by means of integration, organization and coordination of its agents; (b) adaptation and dissemination of suitable technologies to small holders in the selected provinces; (c) production and dissemination of tools, small farm machinery and maize storage equipment to be use at farm and village levels; and (d) technical assistance tofarmers in the selected three provinces; (ii) promote and support the strengthening of physical and services marketing infra-structures: (a) wholesale and retail markets; network of storage facilities at central and decentralized levels; maize processing facilities; and (b) research, extension and training in agricultural marketing; and (iii) promote and support institutional and capacity development to increase efficiency and effectiveness of the NMVC and allow increased access of maize products to national and world markets, through: (a) the establishment of the legal framework for maize certification, sanitary inspection, quality standards and the terms for contracting maize production, processing and marketing; (b) the preparation of the proposal for creating specific credit lines for the NMVC activities (producers, processors, traders); (c) strengthening the existing farmers organizations at national and provincial levels; and (d) preparation of the national strategy, policy and medium-term action plan for the NMVC. III. Project design and Implementation plan Project design The final design of the project will put emphasis on flexibility of execution, so that the project may respond quickly to absorptive capacities and rates of adoption, which are known to be very limited in Angola, as a consequence of the disruption caused by the conflicts. This is deemed essentially for an efficient and effective utilization of project funds. This means that, while the final project design will try to reach an accurate total figure, disbursements of project funds during execution must ideally be calibrated by actual needs of expenditures. Some of the latter will be straightforward, but others will depend on the above-mentioned absorptive capacities of partner institutions and organizations, as well as on the rates of adoption of project proposals by the direct beneficiaries (30 in each selected province) and indirectly nation wide.
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The present proposal is for a five-year project. Year One will be a foundation year, during which the project unit will be established; baseline information and data gathered, processed, analyzed, stored and disseminated; part of the equipment will be acquired; contacts with partner institutions will be made, and agreements will be signed. More importantly, activities aimed to organize farmers and establish marketing services will be pursued as soon as the project unit is able to operate. The technological packages for maize will be designed with the collaboration of Instituto de Investigao Agropecuria (IIA), Institute for Rural Development (IDA) and National Institute for Cereals (INCER) and foreign institutions such as EMBRAPA and International Research Centre for Corn and Wheat (CIMMYT). During Year One, the first group of beneficiaries will be identified; production, logistic, storage, processing and marketing aspects mapped and a specific plan to work with them will be designed. Production of storage facilities, seeds, fertilizers and other inputs and its distribution will start. Year Two will see the maize technological packages tested in the field, both under ideal conditions at experimental stations and in selected sites and with lead farmers in different locations of the project area. Training of extension agents and other personnel will take place. A detailed work plan for Years Three, Four, and Five will be drawn accordingly. Years Three, Four, and Five will see project activities benefiting as many small farmers as possible, while the marketing systems and services for organizing and integrating producers and other agents of the NMVC (contracting farming with flour and feed companies) are consolidated. Demand-driven training activities proceed. Implementation Plan The implementation strategy will be based on the following criteria: (a) at the institutional level, as much collaboration as possible with public and private institutions and civil society organizations, so as to benefit from synergies, integration, coordination and economies of scale in the NMVC; and (b) at the beneficiary level, in order to create immediate impact, the first farming communities to be assisted will be the ones closer to markets; as these start to operate more efficiently and marketing systems start functioning, the project will reach farmers located farther and farther away from market centers. In order to be successful, the Project will need some immediate success stories or events, which will be identified, reported and disseminated. Because the technological packages will be of a transitional nature, leading the farmer from the peasant level of production to a commercial one (through integration and coordination), it is fundamental tofollow up on the more efficient farmers, processors and traders who will act to both create a demonstration effect and promote the new technology. At the same time, farmers and other agents will become more integrated into the maize value chain. The project implementation team will rely on technical and operational support from FAO, in close collaboration with specialized national and international institutions. It will create national capacities to ensure the sustainability of project results and as part of a successful
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exit strategy. The project team will have a team leader, 3 national experts, 2 general support staff and short-term national and international staff to provide assistance on technical, institutional and policy issues. FAO will provide periodical specialized assistance through its technical divisions - Policy Assistance (TCA), Agricultural Support Systems (AGS), Plant Production and Protection (AGS) and Research, Extension and Training (SDR)-. Expected main achievements: (i) Year One: (a) three technological packages for maize are prepared and tested in the next planting season; (b) collect, process, analyze and disseminate key baseline information and data on maize value chain for the three selected provinces and for the country as a whole (database constructed and disseminated); (c) key constraints and opportunities for improvement in terms of maize value chain identified and addressed by the existing institutions; (d) start producing grain storage equipment2 in nine workshops in the project area (3 per province); with project support, thirty others (10 per province) are established from Year Two tofive. From Year Two tofive: (a) at least 70% of leading peasant farming families receiving the maize technological package. Three technological packages for maize are totally or partially utilized by the farmers of the selected Provinces after Year Four of project implementation; (b) in collaboration with MINADER and other projects and organizations, the project supports the training of extension agents from Year two tofive; (c) the project signs agreements with MINADER and partner institutions related to the rendering of research, extension and credit services to beneficiaries; (d) the project supports the establishment of 9 (3 per province) farmers organizations during Year One; a minimum of 30 others (10 per province) are established from Year Two tofive; the project supports the establishment of 3 traders organizations (1 per province) during Year Two; (e) together with Provincial Governments, the project collaborates in the improvement of the public markets of the three capital cities (Huambo, Kuito and Lubango) during Year Two. Twelve other local markets will be improved from Year Three tofive; (f) yields grew from 500 kg/ha from Year 0 to 2000 kg/ha at the end of Year Five in 70% of farmers assisted by the project; (g) at least 70% of the farmers assisted by the project benefited from improved extension, credit, processing and marketing services at end of Year 5; (h) average family income of direct project beneficiaries increased 20% in Year 1 and, an average increase of 15% per year until Year Five; and (i) establish maize research networks with CYMMIT and EMBRAPA to adapt technology and provide training for researcher and extension staff.
(ii)
The potential risks of this project are associated to: (a) instability in permanent flow of input supply due to bad states of roads; however, it is expected that the rail transportation facilities will be full recovered and operational until mid-2007; (b) weak technical capacity of potential national partners; (c) difficulty of communication in the national language (Portuguese) and tribe languages; (d) lack of national expertise in the new technologies to be adapted by the project; and (e) undesirable competition among partners. Provisions to minimize these and other
As recommended by Post-Harvesting, Agro-Processing and Marketing, working Document #14, ASR, MINADER/FAO/WB/UNDP. 2004.
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risks will be included in the project document. In this context, the worldwide experience of FAO in working in similar difficulty situation will be a plus. A summary of Project objectives, activities, product and outcomes are presented in Appendix A. The estimated budget for this Five-Year Project is around USD4 million, as discriminated in Appendix B. The figures and components of both appendixes will be finalized accordingly at the time of preparation of the final project document. IV. Monitoring and evaluation The novelty of some activities in the project area, as well as the flexible execution modality proposed in this project, will call for a continuous monitoring and evaluation mechanism, so as to guarantee a smooth execution of activities and their forward planning. Regular evaluation exercises will verify the level of achievement of Project objectives and improvement of beneficiaries well-being. During Year One, base line information will be collected so that levels of advancement may be verified periodically. Sets of indicators will be defined for monitoring and evaluation exercises. The monitoring and evaluation methodologies to be utilized by the project will be the ones recommended and used by FAO. Main indicators will refer, among other issues, to yields of maize and other key crops; food security situation at household level; level of organization of farmers for both production and marketing; availability of, and proximity to markets; use of marketing services; level of organization of traders; availability and use of inputs, especially of seeds, fertilizers and pesticides; levels of family income; availability and use of social services such as health and education; and the sanitation situation at the village level (potable water, latrines, etc) and institutional development of the maize value chain, in terms of organization, integration and coordination. V. Organization capacity and management plan FAO is the specialized agency of the UN system for agricultural and rural development. It has a long experience in Africa as a whole and in Southern Africa in particular. The FAO has been present in Angola since before the Peace Accord of April 2002 and has had a strong involvement in the present phase of the country transition to growth and development. The execution of this Project will benefit, not only from the local support normally provided by the Representation in Angola, but alsofrom all the technical support available at Headquarters, in Rome, and in its Regional and Sub-Regional Offices for Africa, in Accra and Harare, respectively. Under usual FAO procedures, the Project Budget Holder is the FAO Representative. The Project manager is called Chief Technical Advisor (CTA). The present Project will require one of P-5 level (high professional level of the Agency). The CTA will be an experienced professional, most likely with extensive experience in Angola and fluent in Portuguese. This project will also have a Steering Committee with representatives from the donor institution, FAO, and a counterpart institution, in this case, most likely, the Ministry of Agriculture and Rural Development (MINADER). Regular reports (quarterly or biannual) will be sent to the Foundation as well as the results of the periodical evaluations.
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103
Appendix A Objectives, activities, outputs and outcomes3

Vision of success: Project Objective 1: Promote and support maize production nation wide, with emphasis on the selected provinces of Huambo, Bi and Huila, through: (a) development of the maize value chain by means of integration, organization and coordination of its agents; (b) adaptation and dissemination of suitable technologies to small holders in the selected provinces; (c) production and dissemination of tools, small farm machinery and maize storage equipment to be used at farm and village levels; and (d) technical assistance tofarmers in the selected three provinces. Outputs Outcomes (Short- and Long-Term)
Activities a. Promote and support the development of the NMVC by means of its organization, integration and coordination: 1. Organize and implement the national meeting of the NMVC. first 1.
Agreement on key medium-term priority actions to promote the organization, integration and coordination of NMVC.
1.
Increased organization, integration and coordination of the NMVC, with perceived economic benefits to their agents.
2.
Construct an information and database (IDB) on key aspects of the NMVC.
2.
IDB constructed, operational and disseminated to all NMVC stakeholders and civil society in general.
2.
Decisions of agents of NMVC improved with their income increased.
3.
Construct a homepage to disseminate information on NMVC.
3.
Homepage constructed and operational to the public.
3.
b. Promote and support the adaptation and

3
Rate of increase of stock of knowledge and productivity and income of agents of NMCV increased.
Detailed programmed activities, outputs and outcomes will be provided in the project document.
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dissemination of technologies to small holders:
1.
Prepare three Technological Packages (TPs) for the selected provinces in collaboration with Research and Extension Institutions (REI) and Civil Society Organizations (CSO), by means of workshop, including one expert consultation. Test three TPs at farm level, in the three selected provinces, during the next planting season.
1.
Technological accordingly.
packages
prepared 1. Experience gained in preparing technological packages and awareness created on traditional and alternative technologies available for the NMVC.
2.
2.
3.
Organize and implement field visits to the TPs tested area. 3.
Field results of the performances of the three TPs analyzed and conclusions and lessons learned prepared and widely disseminated. Field visits implemented, evaluations prepared and lessons learned on the tested TPs documented and disseminated.
2.
Productions, increased.
yields
and
incomes
4.
Provide support to selected farmers in the project area to adopt new technologies with technical assistance provided also with support of the project.
3.
4.
Support provided and results analyzed and disseminated.
Performances of the TPs and the memory of the field visits became part of the culture of the participants used to increase their efficiencies and incomes. Stock of knowledge of farmers increased leading to increase theirs productions, yields and incomes.
4.
5.
Organize and implement one annual wide participating field day on NMVC, to show technological advancements and progress achieved by the Project.
5.
6.
Organize and prepare series of publications on adaptation and dissemination of technologies to maize
Annual NMVC field day organized, implemented, evaluated and results and lessons learned widely disseminated.
5.
Memory of the annual field day became part of the culture of the participants with positive effects on their incomes.
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smallholders (ADTSH). 6. 7. Organize and implement a national network (NN) of the NMVC agents and the public in general. Series of publications organized and published on ADTSH. 6. Increased knowledge, use of technologies and income of NMVCs agents.
c. Promote and support the production and dissemination of tools, small farm machinery and maize storage equipment to be use at farm and village levels 1. Organize and implement a National Workshop (NW) on production, dissemination of needed tools, small farm machinery and maize storage equipment to be used at farm and village levels.
7.
Organize and implement an evaluation and lessons learned, documented and disseminated by the Project.
7.
Increased knowledge, use of technologies and income of NMVCs agents.
2. Implement the resulting action plan of the NW.
1.
Workshop organized, implemented results and recommendations documented and action plan prepared for the life of the Project.
1.
Experiences of the workshop and lessons learned used by the participants to improve their activities and incomes.
d.
Promote and support provision of research and technical assistance tofarmers in the selected three provinces and national wide through project home page and extension mechanisms.
2.
Action plan implemented until the end of the Project and results and lessons learned, documented and disseminated. Technologies available to be used by farmers.
2.
Increased technology, productions, yields and incomes of the agents of the NMVC.
1. Organize and implement an efficient and effective research and extension service for NMVC, in partnership with public and
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private sector and civil society organizations (CSO). 1. Research and extension service organized and implemented accordingly.
1.
Increased productivity, production and incomes of the NMVCs agents.
Project Objective 2:
Promote and support the strengthening of physical and services marketing infra-structures-: (a) wholesale and retail markets; network of storage facilities at central and decentralized levels; maize processing facilities; and (b) research, extension and training in agricultural marketing. Outputs 1. Wholesale and retail markets; networks of storage facilities at central and decentralized levels; and maize processing facilities strengthened. Outcomes (Short- and Long-Term) 1. Efficiency and effectiveness of the NMVC increased with increase in the incomes for the agents of NMVC.
Activities 1. Promote and support the strengthening of: wholesale and retail markets; networks of storage facilities at central and decentralized levels; maize processing facilities.
2. Promote and support research, extension and training in agricultural marketing.
2. Research, extension and training in marketing for NMVC provided, evaluated and the results disseminated.
2. Increase in production and yields with correspondent increase in the incomes of agents of NMVC.
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Project Objective 3:
Promote and support institutional and capacity development to increase efficiency and effectiveness of the NMVC and allow increased access of maize products to national and world markets, through: (a) the establishment of the legal framework for maize certification, sanitary inspection, quality standards and the terms for contracting maize production, processing and marketing; (b) the preparation of the proposal for creating specific credit lines for the NMVC activities (producers, processors, traders); (c) strengthening the existing farmers organizations at national and provincial levels; and (d) preparation of the national strategy, policy and the medium-term action plan for the NMVC. Outputs 1. Legal framework prepared in close collaboration with NMVC and discussed with Government for approval. 1. Outcomes (Short- and Long-Term) Increased competitiveness of NMVC and incomes for the agents of the chain.
Activities 1. Promote and support the establishment of the legal framework for maize certification, sanitary inspection, quality standards and the terms for contracting maize production, processing and marketing. 2. Promote and support the preparation of the proposal for creating specific credit lines for the NMVC activities (producers, processors, traders and others).
2.
Proposal for credit lines prepared in close collaboration with NMVC, discussed with Government for approval.
2.
Increased investment and incomes of agents of the NMVC.
3. Provide support for strengthening farmers organization at national (EPUNGU and UNACA) and provincial levels (to be defined).
3.
Institutional analysis of these organizations prepared, reforms implemented, capacity development provided (formal and informal training), evaluation of the support prepared and disseminated. Network with national and international institutions for capacity development established (training, research, extension, credit).
3.
Increased role and participation of CSO in policy decisions to improve NMVC and incomes of its agents.
4.
National strategy, policy and medium-term action plan prepared and support to its
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4. Promote and support the preparation of the national strategy policy and the medium-term action plan for the NMVC.
implementation provided. 4. Increased allocation of resources for NMVC activities by the public, private and civil society organizations.
109
110
APPENDIX B Angola - Maize Value Chain Project - 2007-2011 (US$ 1,000) Per year Year 1 Year 2 Year 3 Year 4 Year 5 Total Salaries Professional CTA - P5 (US$18,000/m) 6months/year Maize Value Chain Expert P4 ($10,000/m) Salaries General Services ($3,000/m) International Consultants Locally Contracted Experts Travel Training, Meetings, Communications Expendable Procurement (US$500/M) Non Expendable Procurement Project Unit equipment Maize production equipment Maize marketing equipment Town markets equipment Input costs (farmers control group) Superviser/Technical Support Serv. FAO - HQ General Operating Expenses FAO (US$4,500/m) Sub-total Support Costs (Overhead 13%) Total 108 120 36 12 180 6 108 108 108 45 12 20 60 6 40 40 108 36 45 12 10 60 6 10 30 150 150 150 15 54 108 120 36 30 12 10 45 6 10 30 150 150 150 15 54 108 36 30 12 10 15 6 108 120 36 10 12 10 6 540 348 252 160 60 60 180 30 60 140 450 450 500 75 270 3,575 465 4,040
15 54
15 54
20 150 150 150 15 54
20
50 15 54
616
836
926
756
441
PERFIL DE PROJECTO4
MINADER-JICA-FAO-EMBRAPA Documento Interno para Discusso
PROMOAO DO AGRONEGCIO DA SOJA EM ANGOLA
I.
INTRODUO
1. O cultivo da soja tem se expandido muito em alguns pases de agricultura tropical, com significantes benefcios econmicos, sociais e ambientais. Um importante exemplo, que pode ser de utilidade para Angola, o caso brasiliero. Na dcada de 1970 essa cultura era praticada somente no sul do Brasil, com pouca expresso econmica. Em 2004, o Pas produziu mais de 50 milhes de toneladas de soja e faturou USD 8.1 bilhes de Dlares com exportaes de leo e farelo de soja. Alm disso, o Pas tambm exportou uma grande quantidade de farelo de soja transformada em carne de suinos e de aves. II.
4
IMPORTNCIA
Preparado pelo MINADER, com o apoio da FAO.
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2. A soja um cultivo importante, pois aofixar no solo nitrognio da atmosfera fertilizaos naturalmente, contribui para um maior rendimento do cultivo do milho, viabiliza com os seus derivados a avicultura, a suinocultura, a caprinocultura e as pecurias de leite e de corte, viabilizando tambm a recuperao de solos e a formao de pastagens a baixo custos. 3. Seus derivados so tambm bastante usados na alimentao humana como leos comestveis, no enriquecimento proteico de farinhas, massas e pes. Graas ao seu elevado teor de proteina de fcil digestibilidade, e por ser rica em vitaminas do complexo B, est a ser utilizada tambm como substituto de carnes, inclusive hamburgues. Outro uso que est a crescer em vrios mercados consumidores o leite de soja em suas vrias formas.Todos estes aspectos so de grande relevncia para pases onde a nutrio de suas populaes precisa ser melhorada. 4. A nivel do produtor, o cultivo da soja um bom negcio, pois um cultivo relativamente simples, a tecnologia de produo e processamento esto disponveis e as experincias mundiais com produo de soja so positivas e adaptadas a vrias condies de clima e solo, servindo para agricultores familiares e comerciais. 5. Tudo isso, em pases produtores, tem gerado milhares de empregos no campo e na cidade, pois o agronegcio da soja envolve uma grande cadeia de produo, processamento, armazenagem, comercializao, transporte e exportao, com efeitos adicionais e positivos na economia. Vale ressaltar que a demanda mundial por soja e seus derivados crescente e seu mercado bem estruturado e organizado, com compradores em pases desenvolvidos. III. OPORTUNIDADES PARA ANGOLA
6. O Pas tem climas e solos frteis prontos para o cultivo dessa leguminosa e solos de savanas bem estruturados, cuja fertilidade pode ser corrigida para a produo de soja em larga escala. As savanas angolanas, semelhana dos cerrados (savanas) brasileiros, tm um grande potencial para uma enorme produo de soja. Por razes de topografia, clima, localizao geogrfica, relativo vazio demogrfico, disponilidade de grandes jazidas de calcreo, gesso, fosfatos e accesso a portos para exportao. 7. A tecnologia da soja em ambientes tropicais est dominada, desenvolvida principalmente por tcnicos brasileiros da EMBRAPA e pode ser disponibilizada atravs de negociaes bilaterais com aquela instituio, por meio tambm da cooperao Sul-Sul, promovidas pelos Governos do Brasil e de Angola. 8. O negcio da soja rentvel e dados desse cultivo no Braisil indicam que a produo por hectare varia de 2500-3000 kg. O valor histrico da saca de soja com 50 kg, no mercado internacional de USD10 podendo chegar a USD18, como ocorreu no ano de 2003. Seu custo mdio de produo por hecatare se paga com aproximadamente 17 sacas. Portanto, a renda lquida por hectare pode variar de USD300 a USD400. 9. Angola tem oportunidade de desenvolver o cultivo da soja para os mercados internos e externos atravs de seus principais portos, principalmente para os mercados da Europa e do Japo. Essa produo poder ser orientada aos mercados com especificidades, por exemplo, soja sem hilo, mais claras para produo de leos quase transparentes para o mercado asitico.
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Outra vertente, orientada para mercados mais exigentes, a produo de soja orgnica, com demanda internacional crescente. 10. Para tanto, o agronegcio da soja dever ser desenvolvido, pois, alm dofomento produo dever haver uma poltica agroindustrial, com aces promotoras do processamento, comercializao de insumos e produtos, logisticas, transporte, crdito rural, seguro agrcola e servios auxiliares. IV. ESTRATGIA
11. No primeiro ano dever haver uma cooperao tcnica com o Brasil, onde existe a melhor tecnologia de produo de soja em ambiente tropical. A FAO poder ser solicitada para apoiar aces de cooperao tcnica e econmica. Dever ser feita uma seleo e introduo de material gentico promissor em ambientes tropicais. Variedades locais introzidas em Angola por missionrios, tambm devero ser testadas. Ensaios experimentais devero, com a participao do Instituto de Investigao Agropecuria (IIA), em parceria com investigadores brasileiros especialistas na produo de soja. Esses ensaios devero ser implementados nas estaes experimentais do IIA e em propriedades de agricultores inovadores localizadas em regies promissoras, em termos de clima e solo. 12. No segundo ano sero desenvolvidas demonstraes de resultados, usando-se as variedades selecionadas na etapa anterior, em cultivos de maior escala, em propriedades de agricultores inovadores, bem localizadas, em regies promissoras, que permitam uma visitao, por grupos de agricultores e uma importante vulgarizao dos resultados. Em paralelo, dever haver um progroma de produo de sementes que poder ser coordenado pelo SENSE. 13. No terceiro ano sero desenvolvidas aces de fomento, promovendo a implementao de de cultivos em maior escala. A multiplicao das sementes promissoras dever ser intensificada para se ter material gentico superior disponvel no mercado. O sector privado dever assumir essas actividades a mdio prazo, iniciando o processo de desenvolvimento do agronegcio da soja em Angola. Ainda nesta fase dever haver a disponibilizao de crdito rural de custeio e investimento e cooperao econmica internacional, talvez com o Japo, atravs da Cooperao Japones - JICA, pois aquele pas tem interesse em aumentar a oferta mundial de soja. 14. Posteriormente, recomenda-se a implementao de programas de assentamentos dirigidos nas savanas angolanas, que tambm podero ser desenvolvidos com a cooperao econmica do Japo, como ocorreu no Brasil, nas reas de savanas que tem solos bem estruturados, profundos, possiveis de ter suas fertilidades aumentadas com o uso de calcreo, gesso e fosfatos, com topografia plana, que permitem mecanizao e produes em escala competitiva.
V.
RESULTADOS E BENEFICIOS
15. Com base na experincia brasileira e de outros pases pode-se antecipar que o desenvolvimento do agronegcio da soja em Angola trar ao Pas significantes beneficios econmicos, via gerao de renda e divisas; beneficios sociais, via maior segurana alimentar e gerao de empregos; e beneficios ambientais, pois a soja um melhorador de solos.
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VI.
CUSTOS
16. Ainda que estimativas especficas devero ser feitas, pode-se indicar que as magnitudes dos custos operacionais para a iniciativa de promover o cultivo da soja em Angola no sero grandes. Os gastos sero relativos a pagamento de consultorias, viagens internacionais, aquisio de materiais genticos, implementao de ensaios e de demonstraes de resultados com agricultores inovadores. A seguir apresentado um oramento preliminar dos custos do Projecto, para implantao sustentvel da soja; e um cronograma e um sumrio das actividades a serem implementas num perodo de trs anos. VII. ORAMENTO
Estimativa da Promoo da Soja em Angola Item de Despesa Custo (US$1.00)
Ensaios de investigao adaptaviva - 1o. Ano 4 Regies agro-ecolgicas Demonstrao de resultados - 2o. Ano 4 Regies agro-ecolgicas Fomento - 3o. Ano 4 Regies agro-ecolgicas Custos adminstrativos - 13%
150000
150000 150000
58500
Total
508500
VIII. CRONOGRAMA E SUMRIO DAS ACTIVIDADES 17. 1. ANO .-..ENSAIOS (INVESTIGAO ADAPTATIVA) 18. Negociao com o Brasil Introduo de material gentico Ensaios no IIA e em reas promissoras Seleco de variedades de soja promissoras
2 ANO..-..DEMONSTRAAO DE RESULTADOS Seleco de regies com potencial produtivo Implementao de demonstraes de resultados 114
19.
Acompanhamento com Ajustes Organizao e teste dos pacotes tecnolgicos Vulgarizao dos pacotes tecnolgicos testados Produo de sementes em escala
3 ANO - FOMENTO Implementao de cultivos em escala econmica Multiplicao de sementes comerciais Cooperao econmica com Japo e outros parceiros do desenvolvimento Disponibilizao de crdito rural Ampliao do nmero de produtores comerciais Integrao com um Programa de desenvolvimento de Savanas
IX.
CONSIDERAES FINAIS
20. Todos estes elementos devero ser consolidados em um Projecto Nacional Integrado para promoo da cultura da soja em Angola. As regies e provincias devero ser seleccionadas de acordo com o potencial agro climtico e de preferencia onde os agricultores tiverem manifestado interesse na cultura. Entretanto, a assistncia tcnica da FAO e da Embrapa para a transferncia e testes dos pacotes tecnolgicos ser indispensvel. 21. O Projecto dever contemplar ainda estudo dos mercados nacionais e internacionais para que a produo em escala no cause prejuizos aos produtores. Paralalelamente, devero ser desenvolvidos estudos para a produo de rao e tambm iniciado um programa piloto de produo de frangos em escala comercial. Neste particular. a tecnologia brasileira dever ser considerada, j que consegue produzir frangos com os menores custos de produo do mundo. No caso de Angola que j conta com tradio na produo de milho, a produo de soja o segundo componente que falta para completar para produo de rao e como passo natural a produo de frangos. Vale tambm lembrar que essa actividade, praticada no Sul do Brasil, tipicamente de pequenos e mdios produtores, os quais por meio de empresas ncoras conseguiram se integrar no merdado internacional.
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9 - Glossary
Any use of land that involve the production of non arbustive plants, cattle and other animal production. Agriculture Vocation Lands are those that, due to their physical site features such as soil, topography, and the rainfall it receives, do not require exceptional protective measures to avoid soil and water related negative externalities. AVL classification does not depend on the type of cover the land actually has, nor does it depend on the requirements it may have for agriculture crop or forest production. Therefore, lands with forest cover or use can still be classified as AVL if their physical features so indicate; while lands not covered with forest may not be AVL. Include business related to the supply of inputs, farming, harvesting, distribution, shipping, storage, processing, advertising and selling of agricultural products such as cultivation of crops and livestock production. That sector of the economy that involve agriculture based businesses and activities. A complex methodology that seeks to enable rational land-use planning, management and monitoring on the basis of an inventory of land resources, and an evaluation of biophysical limitations and potentials for specific crop production and crop production requirements. It tries to divide land into units with similar crop suitability, productivity potential and environmental impact. means the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.* Includes genetic resources, organisms or parts thereof, populations, or any other biotic component of ecosystems with actual or potential use or value for humanity. * Changes in a third partys welfare that result from decisions taken by someone who does not take in consideration such changes. When these decisions result in increase of the third partys welfare, it is said that a positive externality or external benefit have been generated. When these decisions result in decrease of the third partys welfare, it is said that a negative externality or external cost have been generated A situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. Include activities related to the supply of inputs, forestry, harvesting, distribution, shipping, storage, processing, advertising and selling of outputs produced in forests, natural or otherwise. Include business involved in the supply of inputs, forestry, harvesting, distribution, shipping, storage, processing, advertising and selling of wood and non-wood outputs produced in forests, natural or otherwise. An area more than 0.5 hectares with trees higher than 5 meters and a canopy cover of more than 10 percent, or trees able to reach these thresholds in situ. (FAO, 2004) The set of FVL with and without forest cover plus AVL with forest cover. Policies that seek to increase the contribution of forest lands to social welfare. That sector of the economy that involves forest based businesses and activities. Any land use that involves a forest cover. It includes, for example, exotic or native species plantation forests, natural primary or secondary forests under management; agroforestry uses, arbustive fruit plantations, forest roads, firebreaks, recently harvested forests temporarily without forest cover and that will return to forest use, etc. Forest Vocation Lands are those that, due to their physical site features such as soil, topography, and the rainfall it receives, should be kept under forest cover or other sustainable land use if soil or water related negative externalities are to be avoided. FVL classification does not depend on the type of cover the land actually has, nor does it depend on the requirements it may have for agriculture crop or forest production. Therefore, lands with no forest cover or use can still be classified as FVL if their physical features so indicate; while lands covered with forest may not be FVL. means genetic material of actual or potential value.* means the conservation of ecosystems and natural habitats and the maintenance and recovery of viable populations of species in their natural surroundings and, in the case of domesticated or cultivated species, in the surroundings where they have developed their distinctive properties. Those factors of the business climate that affect agriculture and forest based investments which have origin in other sectors of the economy such as economic infrastructure (energy, transport, communications), social infrastructure (water,
Agriculture use Agriculture vocation land (AVL)
Agriculture based businesses Agriculture sector Agro-Ecological Zoning (AEZ),
Biological diversity
Biological resources Externalities
Food security Forest Based activities Forest based businesses Forest cover Forest land Forest policies Forest sector Forest use
Forest vocation land (FVL)
Genetic resources In-situ conservation
INTER sectorial factors
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INTRA Sectorial factors Land cover Land use Non-forest vocation lands (nFVL) Rural sector Rural development
sanitation, health, education), financial sector, environmental rules, land tenure, etc. Those factors of the business climate that affect agriculture and forest based investments which have origin with these same sectors and whose policy internentions instruments are under the control of agriculture and forest governmental institutions, businennes, and related stakeholders. The observed (bio) physical cover on the earth's surface, regardless of its use by people. Refers to arrangements, activities and inputs people undertake in a certain land cover type to produce, change or maintain it. Agriculture vocation lands plus all other land surfaces such as urban areas, water bodies. Excludes forest vocation lands. That sector of the economy that takes places in rural areas and includes agriculture, forest, fisheries, livestock based economic activities as well as non-farm related economic activities taking place in rural areas. Is that type of development that takes places in rural reas. Encompasses agriculture, forestryeducation, infrastructure, health, capacity-building both for off- and on-farm employment, and rural institutions the needs of vulnerable groups. Rural development aims at improving rural peoples livelihoods in an equitable and sustainable manner, both socially and environmentally, through better access to assets (natural, physical, human, technological, and social capital), and services, and control over productive capital (in its financial or economic and political forms), that enable them to improve their livelihoods on a sustainable and equitable basis. Externalities associated with the use of the soil and which are the result of erosive and water runoff processes. These externalities affect on-site soil plant nutrition and water availability for plant consumption, generate loss of soil particles that will be deposited as siltation elsewhere in the landscape, affect water percolation into the soil, the quality, quantity, and time availability of water on water bodies, and affect water availability in ground water and springs. The phrase excludes pollution resulting from agrochemical use. Individuals and groups who have an interest in the issues in hand. They normally represent their own interests as stakeholders. Those factors of the business climate that affect all sectors of a countrys economy such macro economic factors, exchange rate, fiscal policy, etc. Agricultural production activities that do not generate soil or water related negative externalities. Land use of any type that does not generate soil or water related negative externalities. It can be a sustainable agriculture use, a road, a building, forest cover, forest use.
Soil or water related externalities
Stakeholhers SUPRA sectorial factors Sustainable agriculture Sustainable land use
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ANNEX 10
Draft 25/09/08 FAO / UNILATERAL TRUST FUND PROGRAMME Project of the Government of the Republic of Angola Programme Document
Promotion of Sustainable Biofuel Development Programme in Angola PROBIOS UTF/ANG/[XXX]/ANG
Donor: Executing Agency: Duration: Estimated Start: Donor Contribution:
Government of the Republic of Angola FAO 30 months December 2008 US$ 3.080.663
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II. Table of content

Table of content............................................................................................................i Executive Summary..................................................................................................... ii Acronyms.................................................................................................................... iii 1. Background ......................................................................................................... 1 1.1. General context................................................................................................ 1 1.2. Country / Sectoral context................................................................................ 2 2. Rationale ............................................................................................................. 3 2.1. Problem/Issues to be addressed...................................................................... 3 2.2. Target Beneficiaries ......................................................................................... 4 2.3. Project Justification .......................................................................................... 4 2.4. FAOs related work and comparative advantage ............................................. 5 3. Programme Framework....................................................................................... 6 3.1. Impact/ Development goal and purpose........................................................... 6 3.2. Outcomes/ Specific objectives, outputs and activities ...................................... 7 3.3. Sustainability.................................................................................................. 11 3.4. Risks and assumptions .................................................................................. 11 4. Implementation and management arrangements .............................................. 12 4.1. Strategy/methodology .................................................................................... 12 4.2. Institutional framework and coordination........................................................ 14 4.3. Government inputs......................................................................................... 15 4.5. Technical support/linkages............................................................................. 16 5. Oversight, monitoring, management information and reporting......................... 18 5.1. Oversight and reviews.................................................................................... 18 5.2. Monitoring and knowledge sharing ................................................................ 18 5.3. Communication and visibility.......................................................................... 18 5.4. Reporting schedule ........................................................................................ 18 Annex 1: Budget (in US$) ............................................................................................ I Annex 2: Logical framework ...................................................................................... III Annex 3: Indicative work plan over 30 months ........................................................ VIII Annex 4.1. Terms of Reference of the National Programme Coordinator ................ 12 Annex 4.2. Terms of Reference of the International and National Sustainable Biofuel Advisors.................................................................................................................... 13
III. Executive Summary

The global context for sustainable biofuel development can be characterised by: Biofuel development is happening throughout the world for a variety of reasons and in a situation characterised by the current significant mismatch between demand and supply, and often with little emphasis on mechanisms to guarantee sustainability; A reasonable amount of work on international sustainable biofuel development (SBD) principles and standards exists, which could benefit from more coherence, consolidation, additional dialogue and formal recognition at a high-level international policy level; and by governments. Very incipient work on SBD enforcement mechanisms in a few non-OECD countries despite the feedstock production-related advantage of many of these countries; To date very little work and findings on indirect impacts of biofuel development, in particular those related to food security and indirect land use change impacts. These present significant challenges in relation to SBD principles, standards, and ways to implement them; Still unresolved challenges of ensuring local acceptability, equity, and enforcement of SBD standards. The above features influence the Angolan context of SBD. They are all the more important that Angola is one of the countries with highest potential to develop biofuel in Africa, given its size and natural characteristics. It is therefore crucial to ensure that this development happens in a sustainable manner. Given its vast, amounts of unused land and frequent favourable climatic conditions for feedstock production, Angola is considered as having significant potential and comparative advantages in biofuel development, be it for domestic use or expert. In that perspective, in 2008, the GoA has developed and approved a biofuel development policy and legislation, through a consultative interministerial process led by the Ministry of Petroleum (MINPET), with intense participation of the MINADER, as the body responsible for the production of biofuel feedstocks. Moreover, in its Medium Term Development Programme5, the MINADER considers that the country could make 500,000 hectares available for biofuel development between 2009 and 2013. Hence, the next logical step is the preparation of a Programme for the Promotion of Sustainable Biofuel Development PROBIOS which will support the development of the diverse value chains related to biofuels, including production, processing, storage, transport, trade and export. Obviously, the bulk of investments for the sustainable biofuel development in Angola will have to come from the private sector, with appropriate support from the public sector. In August 2008, both the MINADER and the MINPET have requested FAO to submit a concept note about a Programme on Sustainable Biofuel Development. In September, through its letter ref: 688/GAM.MINPET/08., the MINPET has officially requested FAOs support in the formulation of the Programme for the Promotion of Sustainable Biofuel Development PROBIOS along the lines of the concept note submitted in August 2008. The impact/development goal of the programme for the promotion of sustainable biofuel development in Angola PROBIOS is to contribute to rural development and poverty reduction in Angola through sustainable biofuel development. The purpose of the programme is to develop sustainable biofuel value chains which will create more job opportunities and income generation opportunities for rural people as well as increase and diversify export revenues at national level. The outcomes/immediate objectives of the programme are:
MINADER 2008. Plano de Desenvolvimento de Mdio Prazo do Sector Agrrio (PDMPSA), 2009-2013, Julho 2008.
ii
1. To identify and generate the information necessary to base the PROBIOS programme on sound foundations and ensure SBD; 2. To prepare guidelines on sustainable public and private investments in biofuel development; 3. To develop pilot experiments on different technical, economic, environmental, social and institutional aspects of biofuel value chains; 4. To generate knowledge and strengthen capacities on sustainable biofuel development of relevant national stakeholders groups from government, private sector and civil society, and; 5. To ensure efficient and cost-effective management of the PROBIOS programme.
The PROBIOS Programme is planned over a period of 30 months and its budget is worth US$
3.080.663
IV. Acronyms
BEFS BiAS FAO GoA GBEP Bioenergy and Food Security Project Bioenergy Impact Assessment UN Food and Agriculture Organisation Government of the Republic of Angola Global Bioenergy Partnership
MINADER Ministry of Agriculture and Rural Development MINPET NPC NRCB NSBDG NSC OECD PROBIOS SBD Ministry of Petroleum National Programme Coordinator Climate Change and Bioenergy Unit of FAO National Sustainable Biofuel Development Group National Steering Committee Organisation for Economic Cooperation & Development Programme for the Promotion of Sustainable Biodiesel Development in Angola Sustainable Biofuel Development
iii
Promotion of Sustainable Biofuel Development Programme in Angola PROBIOS

1. Background A. 1.1. General context
Current and expected (future) trends in energy prices may catalyse further growth in bioenergy production and more rapid adoption of biobased fuels. Biofuels, represent an important and growing source o demand for agricultural commodities. Major producers of biofuels, such as Brazil, the United States, the EU and Canada are either expected to reduce exports of basic feedstock commodities (cereals or oilseeds) and/or increase biofuel imports. There is increasing international recognition that while growth in bioenergy offers new opportunities for sustainable agricultural development, it also carries significant risks. With use of current technologies and set policies, the growth in liquid biofuels is contributing to the rise of commodity prices and may have negative impacts on food security and the environment. While governments, the private sector and civil society can take important measures to promote sustainable production of bioenergy, many challenges are global in nature and cannot be tackled without a concerted international response. An international approach is needed to address the full spectrum of bioenergy applications including, most urgently, liquid biofuels for transport. The possibility of increased competition for agricultural, water and other natural resources and production factors for biofuel systems instead of food production is already evident and an increasing demand for biomass derived fibres is adding to the pressure6. FAO projections to 2050 note that there may be declines in the growth of global agriculture, driven by lower population growth rates and the gradual attainment of medium to higher per capita food consumption in an increasing number of countries. The outlook also notes that the potential for world agriculture to be a significant source of feedstock for biofuels may offer development opportunities for countries with sufficient land and water resources as well as conducive trade policies. However, given potentially significant markets for biofuels, the competition for resources could induce price increases that adversely affect the ability of lower income consumers to economically access food. There is currently a huge mismatch between the location of highest demand for biofuel i.e. OECD countries, the countries with a natural advantage to produce the biofuel feedstock i.e. tropical countries - and others ready to meet the demand for biofuel as illustrated in Figure 1. This mismatch can be a significant opportunity for developing countries if addressed in the right manner. However, the size of the mismatch and the potential for developing countries (and foreign investors acting in developing countries) to respond too quickly to this new demand is a risk that needs to be managed. In other words, there is a lot of work to be done to ensure that pro-poor, pro-environment, and pro-food and water security policy frameworks are implemented before large-scale biofuel development can take place in a sustainable way (anywhere in the world). Moreover, too high standards may become a barrier for less producing developing countries even though these may have natural advantages for producing sustainable biofuel feedstock.
World agriculture: towards 2030/2050, Interim Report, FAO Rome, 2006.
Figure 1: Mismatch between demand and supply of biofuel feedstock
Rural development policies have often tended to favour large-scale agricultural and livestock production to foster economic growth at the industrial level, often at the expense of more sustainable mixed farming systems typically employed by poorer people. Dedicating large tracts of land to single crop industrial output often contributes to deforestation, land degradation, contaminated surface and groundwater, and loss of biodiversity. There are also growing concerns about the global energy balance of biofuel y systems that depend upon large-scale agro-industrial crops as a source of biomass feedstock. These systems may have a negative effect on food security due to competition for rural resources, increased need for cash-based instruments to access credit, land and productive inputs. Female smallholders are often excluded from accessing the cash and resources necessary to focus on single crop output, and may be excluded from any potential benefits of bioenergy production. Expanding biofuel production may increase economic growth in industrialized and developing countries growth that could alleviate some of the concern related to competition for resources to produce food versus fuel. Economic growth has a far greater effect on hunger reduction when growth occurs in rural areas that have already created conducive policy space for rural and human development.
B. 1.2. Country / Sectoral context

Angola has abundant natural resources with considerable economic potential, as in the case of Petroleum, diamonds, limestone, gypsum and phosphate deposits, huge hydro-electric capacity, vast reserves of sweet water allowing for irrigation and fish-farming, extensive forestry reserves, a rich biodiversity and plentiful agricultural resources, including large areas of savannah, which can be made productive in agriculture, livestock and forestry, using tropical and sub-tropical technologies, with great potential for generating employment, income and foreign exchange revenue. However, a combination of almost 30 years of civil war and inadequate public policies did not produce the expected results in making agricultural production a going concern, (beyond immediate subsistence requirements), resulted in a fall in the supply of agricultural and livestock products, and turned Angola into a large-scale importer of foodstuff. Previously, the country had produced enough to feed its population, and regularly exported large quantities of coffee, maize, cotton, sisal and bananas. These export goods were produced on colonial farms and by family farmers supported by the rural commercial networks of the private sector.
Peace brought about by the Accords of April 2002 signalled the start of recovery for the whole country and, regarding more particularly agricultural and rural sector, an increase in production in traditional agricultural-livestock producing areas. In order to consolidate this growth, and to promote significant and lasting improvements in employment, incomes and the quality of rural life, there is a recognized need to stimulate investment in expanding the capacity for the production, storage and processing of agricultural produce in the short-, medium- and long term. The Government has shown that it is committed to give a greater role to the private sector in the economy, and is currently devising public policies and a favourable institutional, legal and economic environment. On the basis of these policies and development strategies one may expect significant progress in making the most of Angolas vast potential. The Long Term Development Strategy 2025 of the Government of the Republic of Angola7 (GoA) emphasises the agricultural development as a key component. In the short- and medium-term the main priority is to ensure food security and in the medium- to long-term is to develop commercial agriculture to supply the internal and external markets. Of course, there are provisions for investment in the countrys infra-structure and support services for the agriculture and rural sectors. In this context the Government is undertaking important initiatives to promote sustainable short-, medium- and long-term economic development, with social inclusion, which are clearly outlined in the context of the National Strategy for Combating Poverty; Long-Term Development Strategy, 2025; Recommendations for Revision of the Agrarian Sector, 2004; Pillars of the New Partnership for the Development of Africa (NEPAD); and in accordance with Millennium Development Objectives signed by Heads of State, including Angolan, as a Member Country of the United Nations. The Ministry of Agriculture and Rural Development of Angola (MINADER) has defined its main priorities in the context of the Agriculture Sector Review of 2004, with the support of FAO, which include: Management of Agricultural and Rural Development Policies, Programmes and Projects; Food security; Reactivation of Agricultural Economy; Institutional Strengthening of Agricultural Public Sector; and Management and Protection of Natural Resources. Given its vast, amounts of unused land and frequent favourable climatic conditions for feedstock production, Angola is considered as having significant potential and comparative advantages in biofuel development, be it for domestic use or expert. In that perspective, in 2008, the GoA has developed and approved a biofuel development policy and legislation, through a consultative interministerial process led by the Ministry of Petroleum (MINPET), with intense participation of the MINADER, as the body responsible for the production of biofuel feedstocks. Moreover, in its Medium Term Development Programme8, the MINADER considers that the country could make 500,000 hectares available for biofuel development between 2009 and 2013. Hence, the next logical step is the preparation of a Programme for the Promotion of Sustainable Biofuel Development PROBIOS which will support the development of the diverse value chains related to biofuels, including production, processing, storage, transport, trade and export. Obviously, the bulk of investments for the sustainable biofuel development in Angola will have to come from the private sector, with appropriate support from the public sector.
2. Rationale C. 2.1. Problem/Issues to be addressed
Republlica de Angola. Ministerio do Planeamento. Angola 2025: Angola um pais do futuro, Estratgia de Desenvolvimento a Longo Prazo para Angola 2025. Feb. 2007. Vols. I-III. 8 MINADER 2008. Plano de Desenvolvimento de Mdio Prazo do Sector Agrrio (PDMPSA), 2009-2013, Julho 2008.
The global context for sustainable biofuel development can be characterised by: Biofuel development is happening throughout the world for a variety of reasons and in a situation characterised by the current significant mismatch between demand and supply, and often with little emphasis on mechanisms to guarantee sustainability; A reasonable amount of work on international sustainable biofuel development (SBD) principles and standards exists, which could benefit from more coherence, consolidation, additional dialogue and formal recognition at a high-level international policy level; and by governments. Very incipient work on SBD enforcement mechanisms in a few non-OECD countries despite the feedstock production-related advantage of many of these countries; To date very little work and findings on indirect impacts of biofuel development, in particular those related to food security and indirect land use change impacts. These present significant challenges in relation to SBD principles, standards, and ways to implement them; Still unresolved challenges of ensuring local acceptability, equity, and enforcement of SBD standards. The above features influence the Angolan context of SBD. They are all the more important that Angola is one of the countries with highest potential to develop biofuel in Africa, given its size and natural characteristics. It is therefore crucial to ensure that this development happens in a sustainable manner.
D. 2.2. Target Beneficiaries

The main beneficiaries of this project will be: (i) Decision makers in Angola, who will be able to use the results of this project to design and implement SBD in the country; (ii) Policy-makers in OECD countries because this project will contribute to ensuring that biofuels imported from Angola are produced in a sustainable manner. (iv) Members of the National Sustainable Biofuel Development Group (NSBDG) to be established in Angola, as they will improve their awareness and knowledge about SBD and will also contribute to national decisions in that respect; (v) Public and private sector investors, who will have a better investment basis as they will benefit from understanding SBD at both international and national level, and to contribute to SBD; (vii) Last but not least, the small-scale producers and population in rural areas in Angola, whose short and long-term livelihoods will be less threatened by and will more likely benefit from biofuel development given that the project will contribute to make it sustainable.
E. 2.3. Project Justification

The quest for sustainable biofuel systems has increased tremendously over the last couple of years, and is receiving a lot of attention in current international and national discussions around biofuel development. Concerns about potential negative effects, like deforestation or the competition between food and biofuel production, have led to divergent reactions, from moratorium to a strong push for biofuel promotion. Central to the controversy is the size of both opportunities and risks of biofuel development. While this explains the crucial importance of reaching an agreement at both
international and national levels on how to make biofuel development sustainable, this is currently still a huge challenge and subject to intense debate. Angola has decided to take up this challenge. Its preliminary steps in that direction have resulted in a biofuel strategy and legislation. In August 2008, both the MINADER and the MINPET have requested FAO to submit a concept note about a Programme on Sustainable Biofuel Development. In September, through its letter ref: 688/GAM.MINPET/08., the MINPET has officially requested FAOs support in the formulation of the Programme for the Promotion of Sustainable Biofuel Development PROBIOS along the lines of the concept note submitted in August 2008.
F. 2.4. FAOs related work and comparative advantage

There are numerous specific examples of prior and ongoing delivery of FAO technical assistance that is highly relevant to this project, particularly given the need for a multidisciplinary and global approach to SBD mainstreaming food security concerns into bioenergy assessments. FAO work on food security, nutrition and the environment, as well as more than two decades of research and project delivery in various bioenergy fields, provide the multidisciplinary expertise necessary to implement this project. The development of normative and methodological approaches that integrate bioenergy systems into agricultural, forestry and socio-economic activities is common to nearly all the examples of relevant prior and ongoing FAO assistance. The analysis of the potential trade-offs between bioenergy development and food security, for example, is related to the normative framework of the human right to adequate food. The Organisation has also worked to promote a better understanding of the linkages between bioenergy and food security, poverty alleviation, climate change and sustainable development. Collaboration between different technical units and departments has been instrumental in guiding and implementing these activities. As regards bioenergy work, there are four areas of particular focus: (i) supporting knowledge generation and transfer; (ii) providing direct technical assistance to member countries in the field; (iii) assessment of funding and financing mechanisms related to bioenergy; and (iv) development of networks with national, regional and global partnerships. Of particular importance is the work of the BEFS project and of FAOs bioenergy environmental impact assessment framework (BIAS), whose findings will be very useful to the development of SBD principles and standards that include food security and the environment, at both international and national levels. Cooperation with national, regional and international partners, including several intergovernmental organizations, is central to the technical assistance FAO delivers. FAO is the Secretariat of the Global Bioenergy Partnership (GBEP), which is currently perhaps the major international dialogue mechanism on bioenergy. FAO is also co-chairing (with UNEP) the leadership of the Renewable Energy Cluster of the UN-Energy Mechanism, the interagency mechanism that reports to the Commission on Sustainable Development (CSD). Based strongly on the recommendations provided by FAOs Governing Bodies, FAOs overall approach on bioenergy matters is guided by the International Bioenergy Platform (IBEP)..FAO continues to play a key role in the promotion of the IBEP and GBEP activities for recipient countries, donors and other organizations. FAO has significant experience in facilitating multistakeholder processes related to sustainability frameworks (i.e. voluntary guidelines, codes of conduct, etc) in the agriculture, forestry and fisheries sectors, both at international and national levels. Its respected technical expertise, strong convening capacity and honest broker position have played a crucial role in that respect;
FAOs contribution to sound biofuel development will be further enhanced by its German-funded SBD project, due to start before the end of 2008, which combines work on practical aspects of SBD standards and their implementation, both at international and in three pilot countries. As regards more specifically Angola, FAOs support has occurred during and after the years of civil war. Whereas for many years this support has focused on supporting work related to information on food security and the Special Programme on Food Security, more recently, it has diversified and gained additional momentum, in particular through support related to the forestry sector (e.g. new forest law and national forest inventory), policy advice (e.g. on the Agriculture Sector Review and the support to the Planning and Studies Cabinet of MINADER) and institutional strengthening of MINADER (e.g. restructuring of the national research system and overall reorganisation of the Ministry). Based on the above, FAO is well placed to continue to deliver the required technical support to the implementation of the PROBIOS, combining relevant experience on SBD at international and country level with its honest broker role on such a controversial topic as biofuels.
3. Programme Framework G. 3.1. Impact/ Development goal and purpose

The impact/development goal of the programme for the promotion of sustainable biofuel development in Angola PROBIOS is to contribute to rural development and poverty reduction in Angola through sustainable biofuel development. The purpose of the programme is to develop sustainable biofuel value chains which will create more job opportunities and income generation opportunities for rural people as well as increase and diversify export revenues at national level.
H. 3.2. Outcomes/ Specific objectives, outputs and activities

The outcomes/immediate objectives of the programme are: 6. To identify and generate the information necessary to base the PROBIOS programme on sound foundations and ensure SBD; 7. To prepare guidelines on sustainable public and private investments in biofuel development; 8. To develop pilot experiments on different technical, economic, environmental, social and institutional aspects of biofuel value chains; 9. To generate knowledge and strengthen capacities on sustainable biofuel development of relevant national stakeholders groups from government, private sector and civil society, and; 10. To ensure efficient and cost-effective management of the PROBIOS programme. The outputs and proposed activities under each outcome are presented hereafter. * Under Outcome 1: To identify and generate the information necessary to base the PROBIOS programme on sound foundations and ensure SBD This outcome will include studies on several topics which are deemed important to base the PROBIOS on sound foundations and ensure biofuel schemes are implemented in a sustainable manner. Output 1.1: Study on productive biofuel value chains and their respective markets This study will include the following topics: Justification of biofuel development in the context of the national energy strategy, and more particularly in comparison with fossil fuel and other types of renewable energies; Analysis of the three types of biofuel markets, i.e. local, national and export markets; Implications of each type of market on the different biofuel value chains, including more appropriate feedstock and specific requirements along the value chain for each type of market. Output 1.2. Study on ways and means to ensure that small-scale producers and rural communities do not lose and in as much as possible benefit from biofuel development This study will have to consider the three possible ways in which biofuel development can influence rural development, i.e. employment generation, income opportunities and better access to energy, and how these play out in the three modalities that can be used in the implementation of biofuel schemes, i.e. corporate companies having their own land, contract farming, whereby small-scale producer supply the feedstock to a large processing unit, and small-scale schemes for local supply of biofuels. These factors are likely to differ according to the feedstock and value chain considered. Whatever the modality biofuel is implemented, it should not hamper food security. Therefore ways and means to achieve this will have to be discussed in the study. Finally, the impacts of biofuel development on land tenure security of rural people will have to be taken into consideration for all the modalities mentioned above. Output 1.3.: Document presenting the biofuel development potential of the main agro-ecological zones and feedstocks This study will use the available information on the agro-ecological zones of Angola, adapting it in order to make it useful as a planning and decision making instrument at national, provincial and municipal levels.
Output 1.4.: Document presenting the energy balance sheets of the most relevant biofuel value chains for the local, national and export markets. This study will concern the energy balance of the most relevant value chains related to SBD in Angola, taking into account the three possible markets concerned (local, national and export). This balance will have to contemplate all the stages of the value chain, from feedstock production to distribution. A key aspect to consider relates to adapting data available from other countries to existing circumstances in Angola. Outputs 1.1. to 1.4. will require the same activities, i.e. - Activities 1.1.1, 1.2.1. 1.3.1 and 1.4.1.: To write the draft of the studies and submit them to FAO for clearance and to the relevant government authorities and the National Sustainable Biofuel Development Group (NSBDG See activities under Outcome 4) for comments,; - Activities 1.1.2, 1.2.2, 1.3.2. and 1.4.2.:, To discuss and validate the findings of the studies in a workshop when deemed appropriate ; - Activities 1.1.3, 1.2.3., 1.3.3. and 1.4.3.: To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information. * Under Outcome 2: To prepare guidelines on sustainable public and private investments in biofuel development Output 2.1.: Guideline document on sustainable public and private investments in biofuel development These guidelines are aimed to orient public and private investors. They will provide a roadmap, a decision-making tree, with rapid appraisal tools and estimates of time and costs for each step of the decision process. More specifically, they will include: Definition of elements that characterise the viability of biofuel investments from a technological, economic, environmental, social and institutional point of view; An approach to quickly define no go areas, i.e. areas where biofuel development should not take place because their development would do more harm than good, and best bet areas, where biofuel development is likely to cause less environmental and social damages, while still being economically feasible; Ways and means to develop national and local participatory negotiation processes related to decisions to be made about biofuel development as well as their monitoring and evaluation; Development of incentive and sanction mechanisms as well as quality control mechanisms related to investments in SBD. Activities necessary to achieve output 2 include: - Activity 2.1.1: To write the draft guidelines and submit them to FAO for clearance and the relevant government authorities and the National Sustainable Biofuel Development Group (NSBDG) for comments - Activity 2.1.2. To hold a workshop to discuss and validate the sustainable investment guidelines; - Activity 2.1.3.: To finalise the guidelines and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information. * Under Outcome 3: To develop pilot experiments on different technical, economic, environmental, social and institutional aspects of biofuel value chains This outcome will be achieved through a series of pilot experiments which are deemed necessary to develop some aspects of biofuel development on a large scale. Such experiments could concern the following aspects: Output 3.1.: Adaptation and improvement of feedstock production and processing techniques, including integrated food-energy systems, good agricultural practices (GAP), etc It is worth pointing out the linkage between this type of experiment and agricultural research, which means opportunities
to benefit from and collaborate with the future National Agriculture Research Organisation of Angola currently being established. Output 3.2.: Development of small-scale biofuel development schemes, which already exist in several developing countries, including in Africa. Regarding this topic, the PROBIOS will benefit from the findings of an FAO-DFID study due November 2008 - on lessons learned regarding livelihood impacts of small-scale biofuel schemes, based on 15 case studies in Asia, Latin America and Africa. These findings and other experience would be used to develop 2-3 experiments regarding small-scale biofuel development. Output 3.3.: Tests on different sustainability requirements of SBD, with an emphasis on environmental aspects and existing and future requirements of relevant export markets. There is an opportunity to test the framework and methodology developed under the FAO BIAS (Bioenergy Impact Assessment) Project, which relates to the assessment of all environmental aspects to consider in biofuel development. Another opportunity lies in the possibility for the PROBIOS programme to benefit and become involved in the international work related to biofuel sustainability, and also on biofuel certification, in which FAO contributes. This could include Angolas participation in some of the international sustainable biofuels forums, and the testing of different ways to enforce SBD standards, including different biofuel certification schemes currently being developed. Outputs 3.1., 3.2. and 3.3. will be achieved through the following similar activities: - Activities 3.1.1, 3.1.2. and 3.1.3. To create a national task force on the different topics; - Activities 3.1.2 3.2.2 and 3.3.2. To develop the terms of reference and requirements of the experiment (what feedstock, what technology, what methodology, what inputs are required, what costs, what duration, etc); - Activities 3.1.3, 3.2.3. and 3.3.3. To carry out the experiments; - Activities 3.1.4., 3.2.4. and 3.3.4. To write the draft reports on the findings of the experiments and submit them to FAO for clearance and to the relevant government authorities and the National Sustainable Biofuel Development Group, - Activities 3.1.5, 3.2.5. and 3.3.5. To hold validation workshops on the finding of the experiments when deemed appropriate; - Activities 3.1.6., 3.2.6. and 3.3.6.: To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information. * Under Outcome 4: To generate knowledge and strengthen capacities on sustainable biofuel development of relevant national stakeholders groups from government, private sector and civil society Output 4.1. A national SBD multi-stakeholder community of practice which contributes to the promotion of SBD Experience shows that the development of a national multistakeholder community of practice is very useful in raising awareness, strengthening capacities and achieving acceptance and sound performance regarding important, controversial and complex topics such as biofuel development. In Angola such institutional entity would be created through PROBIOS in the form of a multistakeholder National Sustainable Biofuel Development Group (NSBDG), which would include representatives from relevant government Ministries, corporate sector, academic bodies and civil society organisations (producer groups and NGOs). The main activities planned to achieve this output include: - Activity 4.1.1.: To establish a multi-stakeholder National Sustainable Biofuel Development Group (NSBDG); - Activity 4.1.2.: To enhance the flux of information and communication about topics and issues relevant to biofuel development. A regular flow of information on what is happening and debated as well as examples of good practice on biofuel development, both at international level and in Angola, will significantly
contribute to the quality of awareness and capacities throughout relevant sections of the Angolan society hence to the overall knowledge and success of PROBIOS. FAO could play an important role on this matter, particularly regarding the international perspective and its own work related to SBD, as supplier and processor of information. This activity will have to foresee the need for translations of executive summaries or whole documents. Activity 4.1.3.: To organise regular seminars and debates on topics relevant to SBD. Such seminars could be organised on a regular basis (say every three month) and would usually last maximum half day. In each seminar, one or two topics could be presented, followed by discussions. Again FAO could contribute in a useful manner, as provider of international experience and debater when appropriate. Activity 4.1.4.: To undertake a short comparative study on the feasibility of different SBD enforcement approaches of SBD standards This study would include different certification schemes and non-certification approaches such as regulations, agro ecological zoning, moratoria on sensitive ecosystems of edible feedstocks, score cards all with adequate participation in assessment and reporting by multistakeholder bodies; Activity 4.1.5.: To carry out an analysis and hold consultations to discuss how the country can capture and potentially regulate potential negative impacts of SBD. This will include the documentation of direct and indirect impacts of biofuel investments, including those related to land use changes (based on a selection on case studies); Activity 4.1.6.: To undertake two study tours planned during the duration of PROBIOS. Two study tours are contemplated during the PROBIOS: o One outside Africa. The obvious candidate for this study tour is Brazil, given its outstanding bioethanol programme and the interesting features of its recent biodiesel programme; o One in Africa: Mauritius could be interesting, given its long experience in bagasse production for the national electricity grid through contract farming schemes with small-scale farmers. Mali could be another country to visit, as the most advanced country in West Africa concerning small-scale biodiesel schemes. Five participants from the NSBDG would participate in each study tour, which would each last about 10-12 days. Activity 4.1.7.: To review the achievements and results of the PROBIOS Programme and provide advice on its substantive content and functioning as appropriate. The NSBDG will gradually increase its knowledge on SBD through the above-mentioned activities. Therefore, it could play a useful advisory role for PROBIOS once it has reached adequate level of knowledge. This would translate in the provision of comments and advice on the substantive content and the PROBIOS programme as they materialise, and on aspects of its management as appropriate. Activity 4.1.8. To contribute to the dissemination of information and training on SBD. Members of the NSBDG could be involved in the dissemination of information and participate as resource persons and organisers in training sessions on topics pertinent to SBD.
* Under Outcome 5: To ensure efficient and cost-effective management of the PROBIOS
Efficient and cost effective management of the PROBIOS is paramount to the success of this programme. This concerns quality of outputs, daily activities and adequate visibility of project findings.
Output 5.1. Efficient and cost effective management of the PROBIOS This includes daily follow up, ensuring adequate and timely availability of programme, quality control through adequate monitoring and evaluation resources. Activities under this output include: - Activity 5.1.1.: To hire the planned staff who will contribute to the PROBIOS Programme, including international and national programme staff and consultants See Section 4.3. for details;
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Activity 5.1.2.: To acquire planned programme equipment and office space See Section 4.2. for details; Activity 5.1.3.: To set up the appropriate programme institutional set up and coordination mechanisms see Section 4.2. for details; Activity 5.1.3.: To develop adequate monitoring and evaluation mechanisms, including reporting systems See Sections 4.2. and 5.4 for details.
Output 5.2.: Dissemination of PROBIOS results It is of crucial importance that PROBIOS results be given adequate visibility given the challenging character and importance of biofuel development in Angolas road towards the Millennium Development Goals. Therefore enough resources and time should be planned for adequate and timely information and communication of PROBIOS findings. Activities planned to achieve output 2 include: - Activity 5.2.1:To organise an information/inception workshop about PROBIOS, with adequate media coverage; - Activity 5.2.2.: To produce PROBIOS information brochures; - Activity 5.2.3.: To set up a PROBIOS website; - Activity 5.2.4. To organise media information events about PROBIOS findings whenever deemed appropriate; - Activity 5.2.5.: To organise a final PROBIOS workshop, with adequate media coverage;
I. 3.3. Sustainability
Sustainability is at the heart of the programme given that the PROBIOS is about promoting sustainable biofuel development in Angola. This Programme will allow relevant national promoters of PROBIOS to integrate the lessons learned on SBD both from this programme. From an operational point of view, sustainability of the work on SBD in Angola will be addressed by developing and capacitating the national communities of practice on SBD through the creation of the multi-stakeholder National SBD Group see output 4.1. As a result of PROBIOS, it is expected that a sufficiently large number of stakeholders from government, private sector and civil society will have acquired the skills to effectively mainstream sustainability concerns in decisions and implementation of biofuel initiatives.
J. 3.4. Risks and assumptions

From a substantive point of view there is no doubt that SBD is a hot topic, which means that there will be intense debate around this at both country and international levels. This is where FAOs comparative advantage comes into play, both as an honest broker, a facilitator, and a repository of significant international experience on aspects related to SBD; and this helps base the debates on facts and substance. Still, national agreements and action plans may require more intensive facilitation and more time. From an operational point of view, as with other projects involving work in countries, lack of continuity in the staffing ascribed to the project can be an element of disruption in the fulfilment of the project objectives. In order to minimise this impact, particular attention will be given to the selection of PROBIOS staff as well as contributing consultants, and to the multidisciplinarity of the overall contributing team. Moreover, risks of conflicts over the progress and findings of PROBIOS will be mitigated by the promotion of collective thinking on SBD through the creation of the NSBDG. Another way of addressing this risk will be to ensure strong ownership and high-level leadership at national level.
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While project results will be valid for a wide variety of circumstances, their use and the sustainability of processes initiated in the country may be influenced by international developments and national changes in priorities. A strong national team with good international (market) connections and concrete owned results, is again the best assurance for continuity.
4.
Implementation and management arrangements

K. 4.1. Strategy/methodology
Given the urgency to ensure SBD in a fair and cost effective manner, both worldwide and in Angola, the PROBIOS programme will work on the several facets of SBD. It will do so this combining information and lessons from the international arena and other countries, applied work in Angola, because of the important synergies between international and national work, Moreover, the project will focus on feedstock production for liquid biofuel, given the recent significant increase in demand for and supply of this type of biofuel, and the fact that biomass production stage is where the links with food security are more important. The priority of PROBIOS is to contribute to sustainability of biofuel development, both for domestic and export markets, and it will work at combining three principal approaches, i.e. through work on policy, awareness and implementation processes. The consideration of both domestic and export markets explains why the project will consider several SBD value chains and enforcement mechanisms. In that line, Figure 2 shows aspects of SBD that need to be considered and those on which the PROBIOS Programme might focus - Aspects within the red circle would be part by the project. Figure 2 also illustrates a key aspect of the Programme strategy, i.e. the combination of technical work aimed at generating knowledge and capacity, and validation of these results through multi-stakeholder processes in Angola, with inputs from similar processes at international level.
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Figure 2: Different aspects of SBD and proposed areas of PROBIOS work
National level
Monitoring and Evaluation
Management Strategies Enforcement mechanisms, including certification en Awareness Raising/ Capacity building Research
Policy Making
Investment Strategies
FAO Technical Support & Facilitation
Multistakeholder, National Dialogue & Decisions
Consider: Food security Livelihoods, Environment, Economics, Climate change Governance
International level
Strategic Foundation, e.g.: Information Sustainability Principles & Standards Good practice Research
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L. 4.2. Institutional framework and coordination

The identification of optimal national stakeholders and partner institutions is very important to the overall success, and sustainability of PROBIOS outcomes. From the Government side, this includes the participation of relevant national government Ministries, i.e. Petroleum, Agriculture and Development, Planning, Energy, Environment, Social Affairs and Trade. Other national bodies to be involved include the Agricultural Development Bank (BDA, )the Agency for Private Investments (AIP), and the Federation of Agricultural Producers and Cooperatives (UNACA). Relevant units from the academic and research sectors as well as development NGOs should also participate in the work of PROBIOS. Three institutional mechanisms are envisaged in the context of PROBIOS Programme, to guide the programme, to help disseminate its results, to become a sustainable means to catalyse national and sub-national action, and importantly, to facilitate public-private sector collaboration.: A National Project Steering Committee (NSC), which will lead in terms of operational aspects of the project at country. The NSC will approve terms of reference of national staff, consultants and contracts, national reports before they are sent for clearance to FAO, and other outputs as appropriate. The NSC will be composed of government representatives from the Ministry of Petroleum, the Ministry of Agriculture and Rural Development, the Ministry or Urban Affairs and the Environment, and the Ministry in charge of national energy matters. Involvement of other Ministries and bodies such as research institutes, ANIP and UNACA will be decided during the inception mission to launch the PROBIOS. The development of a biofuel community of practice in the shape of a multi-stakeholder and multi-sectoral National Sustainable Bioenergy Development Group (NSBDG). Its task will be to provide an opinion to and advise the NSC regarding project matters. It will be composed of representatives from different relevant stakeholder groups from government, private sector, civil society, and development partners The appointment of a National Programme Coordinator (NPC), who will supervise the daily activities of the project at national level. The NC will report to the NSC and FAO. FAO will be the overall Executing Agency. It will report to the NSC and to the Ministry of Petroleum and MINADER, both as FAO clients and PROBIOS financial sponsors, and respectively as national coordinating body for biofuel development and government body in charge of feedstock production; The above-mentioned institutional arrangements are illustrated in Figure 3.
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Figure 3: Institutional and Coordination Framework of the Project

National Steering Committee (NSC)
MINPET
MINADER
Executing Agency (FAO) National Programme Coordinator (NPC)
National Sustainable Biofuel Development Committee (NSBDG)
Lines of reporting Lines of collaboration
M. 4.3. Government inputs

The inputs presented hereafter are based on the assumption that the PROBIOS Programme will last of 2.5 years. (i) Staff Costs: US$ 1.166.250 The PROBIOS staff will include the following staff for the whole duration of the Programme:, a National Programme Coordinator, a National and an International SBD Advisor, a Secretary and a Driver. Provision for additional secretarial and driving work on a temporary basis - has been planned in the budget. The Terms of Reference of the National Programme Coordinator and the National and the International SBD Advisors are presented in Annexes 4.1. and 4.2., respectively. In addition, one has to consider the need for contributions from both international (about 6 man-months per year) and national (about ten man-months per year) consultants, and technical support from FAO. (ii) Travel Cost: US$ 752,500 These costs include missions by the country-based team (NC, and technical Advisers) in the country, and missions by international and national consultants as well as by FAO supporting staff. Moreover, the project envisages two 15 days study tours with the involvement of five participants during the duration of the project. (iii) Contracts Cost: US$ 62.500 This sum will cover contracts with national public and private companies to support project activities, including publications, organisation of workshops, etc.
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(iv) Non-expendable equipment Cost: US$ 357.500 Implementation of the PROBIOS Programme will require a minimum amount of equipment. In this line it is planned to purchase one city car, one 4X4 car, one PC, three laptops, one printer and office furniture. In addition, a provision for equipment for trials on small-scale biofuel schemes and agronomic experimentation has also been included in the budget. (v) Expendable equipment Cost: $50.000 A sum of $50.000 has been planned for the purchase equipment, including spare parts, office supplies and publication information supplies. (vi) Training Cost: US$ 107.500 The project has a strong on-the-job capacity building component, especially focused on the National SBD Group. This will be complemented with two study tour and interaction with international expertise. The establishment of partnerships between relevant institutions in Angola and abroad on the key topics of the PROBIOS Programme is of particular importance, with north-south and south-south cooperation envisaged. The specific requirements will be identified as needs arise each outcome. The above explains the inclusion of several meetings and workshops during the course of the PROBIOS. (vii) Technical Support Services Cost: US$ 30.000 This item includes costs related to periodical reporting and the final evaluation of the PROBIOS and Three items have been foreseen under this item: (viii) General Operating Expenses Cost: US$ 200.000 General operating expenses (GOE) are envisioned to include routine costs of office maintenance (telephone, post, courier, miscellaneous expenses, utilities) over the life of the Programme. In addition one has to consider the costs related to the publication of important PROBIOS document and translation of documents to ease their use by the NSBDG. (ix) Direct Support Costs Cost: US$ 354.413 These are the standard support costs of FAO-executed projects, which amount to 13% of the budget. All inputs mentioned above amount to a total budget worth $ 3.080.663, broken down as presented in Annex 1.
N. 4.5. Technical support/linkages

The Climate Change and Bioenergy Division Unit of FAO (NRCB) will be the Lead Technical Unit (LTU) of this project. Other relevant units of FAO will contribute to this project, especially those with experience on agricultural policies (Agricultural Policy Support Service/TCAS), agricultural value chains and certification (Agricultural Management, Marketing and Finance service/AGSF), crop
16
production (Crop and Grassland Service/AGPC) and the Trade Policy Service (ESTT) for its experience on certification and other ways to ensure that trade benefits small-scale farmers and rural communities. PROBIOS will also collaborate with international bodies with experience relevant to the different stages of biofuel value chains, such as Brazil Agriculture Research Agency EMBRAPA and Petrol Company PETROBRAS.
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5.
Oversight, monitoring, management information and reporting

O. 5.1. Oversight and reviews
The progress of the project will be formally reviewed by FAO and the relevant authorities of the GoA twice a year, though the meetings of the National Steering Committee (NSC). The last meeting of the NSC will be scheduled in order to examine project achievements and decide on possible follow-up. In addition FAO will report to the NSC and relevant project authorities whenever required. The project will be jointly evaluated, prior to its completion, by representatives nominated by the GoA and FAO. The terms of reference, exact timing and place of the Final Evaluation will be decided in consultation among the two concerned parties. Either party may call for an evaluation at any stage of the project if deemed necessary.
P. 5.2. Monitoring and knowledge sharing

Within FAO, a Project Task Force will be created, with participation of all relevant units, be it from Headquarters or Regional/Sub-Regional Office for SADC Region. In Angola, in addition to the monitoring and knowledge sharing that will occur through the formal reporting mechanisms presented in Section 5.4., significant monitoring and knowledge sharing will happen through the work of the SBD community of practice, as planned under output 4.1.
Q. 5.3. Communication and visibility

An inception and final workshop will take place in each participating countries, with participation of media. Other national workshop could occur as deemed appropriate. In addition, whenever deemed appropriate, project findings would be made visible to the relevant audience, at both national and international levels.
R. 5.4. Reporting schedule

The National Programme Coordinator (NPC) will prepare an Inception Report including an individual work plan for the first year, and quarterly technical progress reports, and any other reporting as requested. The quarterly reports will use the standard FAO format, including: Actual implementation of project activities compared to those scheduled in the work plan(s), achievement of outputs, based on the objectively-verifiable indicators; Identification of any problems and constraints (technical, human, financial, other) encountered during project implementation; Recommendations for corrective measures and lessons learned; A detailed work plan for the following reporting period. The above-mentioned reports will be submitted to FAO for technical clearance and the concerned government authorities and the NSBDG for information. Field reports on various technical matters will be prepared and issued under the authority of the National Programme Coordinator, with copies provided directly to the staff concerned, FAO
18
Representation and concerned FAO Technical Officers. Copies of all such Field Major reports on substantive technical matters (and thus normally specified amongst the Outputs) will be published as Technical Reports under the authority of FAO headquarters. The National Programme Coordinator will draft the project Terminal Report during the concluding months of the Programme, and this terminal report will be made available by FAO to concerned authorities and partners for consideration at the final meeting of the national Steering Committee. This report will assess in a concise manner, the extent to which the scheduled activities of the PROBIOS have been implemented, outputs produced, achievement of the Outcomes/specific objectives and contribution to the programme Impact/Development Objective. It will also present recommendations for any future follow-up action resulting from the PROBIOS Programme. The Terminal Report and corresponding final financial statement will be finalized and submitted to the Government of Angola upon conclusion of the Programme.
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V. Annex 1: Budget (in US$)

Items (i) Staff National Programme Coordinator National Technical Adviser International Technical Adviser Secretaries Drivers International consultants National consultants FAO Technical support Sub-total staff (ii) Travel National Programme Coordinator National Technical Adviser International Technical Adviser International consultants National consultants Study tours FAO-staff Sub-total travel (iii) Contracts Lumpsum for diverse types of contracts Sub-total contracts (iv) Non Expendable Equipment One 4X4 car One city car Computers Unit costs 6.000 5,000 12.000 2.500 2.500 63.000 20.000 42.750 Number of units (30 months; 2.5 years) 30 30 30 30 30 2.5 2.5 2.5 Total costs 180.000 150.000 360.000 75.000 75.000 157.500 50.000 118.750 1.166.250
15.550 23.100 28.100 93.000 43.500 49.000 46.875
2.5 2.5 2.5 2.5 2.5 2.5 2.5
38.875 57.750 70.250 232.500 108.750 122.500 121.875 752.500
25.000
2.5
62.500 62.500
45.000 20.000 4.000
1 1 3
45.000 20.000 4.000
Printer Office furniture - lumpsum Equipment for small-scale biofuel trials Equipment for feedstock production trials Other equipment - lumpsum Sub-total non-expendable equipment (v) Expendable equipment Spare parts - lumpsum General office equipment & stationnary Public information supplies - lumpsum Sub-total expendable equipment (v) Training National workshops NSBDG meetings/seminars NSC meetings Sub-total training (vi) Technical Support Services Project evaluation - lumpsum Reporting - lumpsum Sub-total Technical Support Services (vii) General Operating Expenses Lumpsum Publications - lumpsum Translation of documents Sub-total general operating expenses Sub total Direct support costs (13%) Grand total
1.000 25.000 50.000 100.000 5.000
1 1 3 1 2.5
1.000 25.000 150.000 100.000 12.500 357.500
10.000 5,000 5.000
2.5 2.5 2.5
25.000 12.500 12.500 50.000
30.000 10.000 3.000
2.5 2.5 2.5
75.000 25.000 7.500 107.500
25.000 5.000
1 1
25.000 5.000 30.000
30.000 20.000 30.000
2.5 2.5 2.5
75.000 50.000 75.000 200.000 2.709.688 352.259 3.080.663
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VI. Annex 2: Logical framework

Design Summary Outcome 1: To identify and generate the information necessary to base the PROBIOS programme on sound foundations and ensure SBD Output 1.1: Study on productive biofuel value chains and their respective markets Output 1.2. Study on ways and means to ensure that small-scale producers and rural communities do not lose and in as much as possible benefit from biofuel development Output 1.3.: Document presenting the biofuel development potential of the main agroecological zones and feedstocks Output 1.4.: Document presenting the energy balance sheets of the most relevant biofuel value chains for the local, national and export markets. Activities common to outputs 1.1., 1.2., 1.3 and 1.4. Activities 1.1.1, 1.2.1. 1.3.1 and 1.4.1.: To write the draft of the studies and submit them to FAO for clearance and to the relevant government authorities and the NSBDG for comments,; Activities 1.1.2, 1.2.2, 1.3.2. and 1.4.2.:, To discuss and validate the findings of the studies in a workshop when deemed appropriate Activities 1.1.3, 1.2.3., 1.3.3. and 1.4.3.: To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information. Outcome 2: To prepare guidelines on sustainable public and private investments in biofuel development Draft studies Documents Indicators/Targets Means of versification Assumptions
Studies
Documents
Availability of consultants
Workshop proceedings
Documents
Final version of studies
Documents
III
Output 2.1.: Guideline document on sustainable public and private investments in biofuel development
Guidelines
Document
Availability of information and consultants
Activity 2.1.1: To write the draft guidelines and submit them to FAO for clearance and the relevant government authorities and the National Sustainable Biofuel Development Group (NSBDG) for comments Activity 2.1.2. To hold a workshop to discuss and validate the sustainable investment guidelines Activity 2.1.3.: To finalise the guidelines and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information Outcome 3: To develop pilot experiments on different technical, economic, environmental, social and institutional aspects of biofuel value chains Output 3.1.: Adaptation and improvement of feedstock production and processing techniques Output 3.2.: Development of small-scale biofuel development schemes
Draft guidelines
Document
Document
Final version of guidelines
Document
At least two experiments on feedstock production and/or processing At least two small-scale biofuel development experiments Reports on different aspects of SBD
Results of the experiments Results of the experiments Documents
Availability of technical staff Availability of technical staff Availability of technical staff s
Output 3.3.: Tests on different sustainability requirements of SBD
Activities common to outputs 3.1, 3.2. and 3.3. Activities 3.1.1, 3.1.2. and 3.1.3. To create a national task force on the different topics Task forces Documents on Task force creation
Activities 3.1.2 3.2.2 and 3.3.2. To develop the terms of reference and requirements of the experiment Activities 3.1.3, 3.2.3. and 3.3.3. To carry out the experiments At least two experiments Results of the experiments
IV
Activities 3.1.4., 3.2.4. and 3.3.4. To write the draft reports on the findings of the experiments and submit them to FAO for clearance and to the relevant government authorities and the National Sustainable Biofuel Development Group Activities 3.1.5, 3.2.5. and 3.3.5. To hold validation workshops on the finding of the experiments when deemed appropriate Activities 3.1.6., 3.2.6. and 3.3.6. To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information Outcome 4: To generate knowledge and strengthen capacities on sustainable biofuel development of relevant national stakeholders groups from government, private sector and civil society
Output 4.1. A national SBD multi-stakeholder community of practice which contributes to the promotion of SBD
Draft reports
Documents
Number of workshops
Final version of the studies
Documents
NSBDG has contributed to and/or organised at least 10 activities Existence of an active NSBDG
Minutes of NSBDG meetings/workshops Documents on NSBDG activities and contributions Documents
Activity 4.1.1.: To establish a multi-stakeholder National Sustainable Biofuel Development Group (NSBDG)
Activity 4.1.2.: To enhance the flux of information and communication about topics and issues relevant to biofuel development
At least 10 documents sent by FAO and at least 4 part or entirely translated into Portuguese per year At least 4 seminars per year Study
Activity 4.1.3.: To organise regular seminars and debates on topics relevant to SBD Activity 4.1.4.: To undertake a short comparative study on the feasibility of different SBD enforcement approaches of SBD standards Activity 4.1.5.: To carry out an analysis and hold consultations to discuss how the country can capture and potentially regulate potential negative impacts of SBD Activity 4.1.6.: To undertake two study tours planned during the duration of PROBIOS
Reports on seminars Document Availability of consultants
Study and meetings
Document and minutes of meetings Reports on study tours
Study tours
Activity 4.1.7.: To review the achievements and results of the PROBIOS Programme and provide advice on its substantive content and functioning as appropriate
At least two NSBDG notes on PROBIOS per year
Documents
NSBDG is requested to provide feedback on PROBIOS
Activity 4.1.8. To contribute to the dissemination of information and training on SBD
Members of NSBDG participate in at least one PROBIOS media event and/or training session
Minutes of media and/or training events
Outcome 5: To ensure efficient and cost-effective management of the PROBIOS Output 5.1. Efficient and cost effective management of the PROBIOS Adequate and timely use of PROBIOS resources Number of staff as planned Progress and financial reports Staff contracts
Activity 5.1.1.: To hire the planned staff who will contribute to the PROBIOS Programme Activity 5.1.2.: To acquire planned programme equipment and office space Activity 5.1.3.: To set up the appropriate programme institutional set up and coordination mechanisms
Adequate equipment as planned Existence of the NSC and NSBDG
Equipment and bills Documents related to the creation of the NSC and NSBDG Documents
Activity 5.1.3.: To develop adequate monitoring and evaluation mechanisms
Nine progress reports and one final report Two workshops, one website, one information brochure One workshop
Output 5.2.: Dissemination of PROBIOS results
Workshop proceedings, brochure, website Workshop proceedings
Activity 5.2.1:To organise an information/inception workshop about PROBIOS, with adequate media coverage Activity 5.2.2.: To produce PROBIOS information brochure Activity 5.2.3.: To set up a PROBIOS website Activity 5.2.4. To organise media information events about PROBIOS findings whenever deemed appropriate
One information brochure One website At least one media event per year
Document Website Minutes of the event
VI
Activity 5.2.5.: To organise a final PROBIOS workshop, with adequate media coverage
One final PROBIOS workshop
VII
VII.
Annex 3: Indicative work plan over 30 months

Activities Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Outcome 1: To identify and generate the information necessary to base the PROBIOS programme on sound foundations and ensure SBD Output 1.1: Study on productive biofuel value chains and their respective markets Output 1.2. Study on ways and means to ensure that small-scale producers and rural communities do not lose and in as much as possible benefit from biofuel development Output 1.3.: Document presenting the biofuel development potential of the main agro-ecological zones and feedstocks Output 1.4.: Document presenting the energy balance sheets of the most relevant biofuel value chains for the local, national and export markets. Activities common to outputs 1.1., 1.2., 1.3 and 1.4. Activities 1.1.1, 1.2.1. 1.3.1 and 1.4.1.: To write the draft of the studies and submit them to FAO for clearance and to the relevant government authorities and the NSBDG for comments,; Activities 1.1.2, 1.2.2, 1.3.2. and 1.4.2.: To discuss and validate the findings of the studies in a workshop when deemed appropriate Activities 1.1.3, 1.2.3., 1.3.3. and 1.4.3.: To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information. Outcome 2: To prepare guidelines on sustainable public and private investments in biofuel development Output 2.1.: Guideline document on sustainable public and private investments in biofuel development Activity 2.1.1: To write the draft guidelines and submit them to FAO for clearance and the relevant government authorities and the National Sustainable Biofuel Development Group (NSBDG) for comments Activity 2.1.2. To hold a workshop to discuss and validate the sustainable investment guidelines Activity 2.1.3.: To finalise the guidelines and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information Outcome 3: To develop pilot experiments on different technical, economic, environmental, social and institutional aspects of biofuel value chains
VIII
Output 3.1.: Adaptation and improvement of feedstock production and processing techniques Output 3.2.: Development of small-scale biofuel development schemes Output 3.3.: Tests on different sustainability requirements of SBD Activities common to outputs 3.1, 3.2. and 3.3. Activities 3.1.1, 3.1.2. and 3.1.3. To create a national task force on the different topics Activities 3.1.2 3.2.2 and 3.3.2. To develop the terms of reference and requirements of the experiment Activities 3.1.3, 3.2.3. and 3.3.3. To carry out the experiments Activities 3.1.4., 3.2.4. and 3.3.4. To write the draft reports on the findings of the experiments and submit them to FAO for clearance and to the relevant government authorities and the NSBDG Activities 3.1.5, 3.2.5. and 3.3.5. To hold validation workshops on the finding of the experiments when deemed appropriate Activities 3.1.6., 3.2.6. and 3.3.6. To finalise the studies and submit them to FAO for clearance and to the concerned government authorities and the NSBDG for information Outcome 4: To generate knowledge and strengthen capacities on sustainable biofuel development of relevant national stakeholders groups from government, private sector and civil society Output 4.1. A national SBD multi-stakeholder community of practice which contributes to the promotion of SBD Activity 4.1.1.: To establish a multi-stakeholder National Sustainable Biofuel Development Group (NSBDG) Activity 4.1.2.: To enhance the flux of information and communication about topics and issues relevant to biofuel development Activity 4.1.3.: To organise regular seminars and debates on topics relevant to SBD Activity 4.1.4.: To undertake a short comparative study on the feasibility of different SBD enforcement approaches of SBD standards Activity 4.1.5.: To carry out an analysis and hold consultations to discuss how the country can capture and potentially regulate potential negative impacts of SBD Activity 4.1.6.: To undertake two study tours planned during the duration of PROBIOS Activity 4.1.7.: To review the achievements and results of the PROBIOS Programme and provide advice on its substantive content and functioning as appropriate Activity 4.1.8. To contribute to the dissemination of information and training on SBD Outcome 5: To ensure efficient and cost-effective management of the PROBIOS
IX
Output 5.1. Efficient and cost effective management of the PROBIOS Activity 5.1.1.: To hire the planned staff who will contribute to the PROBIOS Programme Activity 5.1.2.: To acquire planned programme equipment and office space Activity 5.1.3.: To set up the appropriate programme institutional set up and coordination mechanisms Activity 5.1.3.: To develop adequate monitoring and evaluation mechanisms Output 5.2.: Dissemination of PROBIOS results Activity 5.2.1:To organise an information/inception workshop about PROBIOS, with adequate media coverage Activity 5.2.2.: To produce PROBIOS information brochures Activity 5.2.3.: To set up a PROBIOS website Activity 5.2.4. To organise media information events about PROBIOS findings whenever deemed appropriate Activity 5.2.5.: To organise a final PROBIOS workshop, with adequate media coverage
Annex 4: Terms of Reference for International and National Project Staff
Note: Complete and detailed Terms of Reference for international and national consultants who would contribute to the Programme will be prepared during the inception phase of the project, and throughout project implementation according to the envisioned work plan. Therefore, in this document, only the Terms of Reference of the National Project Coordinator, the International Sustainable Biofuel Advisor and National Sustainable Biofuel Advisor are presented.
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VIII. Annex 4.1. Terms of Reference of the National Programme Coordinator

Tasks Under the overall supervision of FAO Representative in Angola, technical supervision of the Senior Bioenergy Group Coordinator (NRCB), and in collaboration with other FAO Professional staff and PROBIOS staff, the National Programme Coordinator will coordinate daily implementation of the project at country level. In particular, he/she will perform the following tasks: Provide overall technical and managerial (including financial aspects) supervision to the Programme; Present the PROBIOS Programme to national authorities and other relevant stakeholder groups whenever appropriate; Prepare progress and financial reports and submit them to the FAO Representation in Angola; Supervise the preparation of the Terms of Reference regarding consultants and institutes to be hired during the duration of the PROBIOS; Coordinate the work related to the selection of national consultants or bodies to be contracted in the context of the Programme, and submit these to FAO-Representation in Angola; Review all technical reports of the PROBIOS before submitting them to FAO; Supervise the organisation of technical meetings and other types of events ; Supervise the development of an effective two way communication system between the PROBIOS and relevant audiences; Set up and promote operational relationships with the relevant NGO, private operators, governmental and international projects and programmes with similar objectives, as well as with other UN and FAO programme activities in the country; Supervise the preparation of progress reports, annual reports, and the final report intended for the relevant Government authorities and FAO. Act as the Secretary of the National Steering Committee. Liaise on behalf of the PROBIOS with government agencies concerned at national-central or regional and local levels Perform other related technical duties as required by the Programme. Qualifications; University Degree in environmental science/economics, agricultural economics or related field with at least five years experience in activities related to environmental or natural resource management, experience on rural energy and biofuels in particular would be an asset. At least five years experience in the management of national and/or donor-funded projects, including administrative, organisational, financial and reporting aspects. Languages: Working knowledge of English is desirable. Duration: This is a full time job spread over the entire duration of the project Duty station: Luanda, with field trips as appropriate. In addition, the National Coordinator will participate to at least one of the study tours planned during the duration of the Programme.
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IX. Annex 4.2. Terms of Reference of the International and National Sustainable Biofuel Advisors
Tasks Under the overall supervision of FAO Representative in Angola, technical supervision of the national Programme Coordinator and Senior Bioenergy Group Coordinator (NRCB), and in collaboration with other FAO Professional staff and other PROBIOS staff, the International and National Sustainable Biofuel Development Advisors will perform the following tasks: Supervise and contribute to the development of the substantive work of the PROBIOS Programme. including the identification of required, available and missing knowledge, data and analytical tools; Identify and supervise partner institutions and consultants required to contribute to the technical work of the PROBIOS Programme; develop their terms of reference, and coordinate their inputs to the project. Identify, together with the National Programme Coordinator, national counterparts that are able and willing to participate in the NSBDG; Review and comment all technical reports and submit them to the NPC for clearance and processing; Contribute to the preparation of PROBIOS progress and final reports; Contribute to the substantial and organisational part of PROBIOS meetings and workshops; Contribute to the publication of PROBIOS technical material; Perform other related technical duties as required by the Programme. Qualifications * International SBD Advisor Advanced University degree in environmental science/economics, agricultural economics or related field with at least four years experience in an international working environment, working on bioenergy in the context of development, including particularly agriculture, food security and rural development issues. Experience in project management and very good analytical and quantitative skills; ability to work within a team of professional staff from diverse technical and cultural backgrounds and expertise; very good communication, writing and presentation skills (English); previous working experience in developing countries and good command of a second UN language would be highly desirable. * National SBD Advisor University Degree in environmental science/economics, agricultural economics or related field with at least five years experience in activities related to environmental or natural resource management, experience on rural energy and biofuels in particular would be an asset. Languages: Working knowledge of English is desirable. Duration: This is a full time job spread over the entire duration of the project Duty station: Luanda, with field trips as appropriate.
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Framework for the Sustainable Development of African Savannah: The Case of Angola (Final Report)
ANNEX 11-
Presentation. Agriculture and Rural Development Economic Zones: Framework or Rapid Development of Angolas Savannah
Agriculture and Rural Development Economic Zones. Framework for Rapid Development of Angolas Savannah.
Presented to the
National Agency for Private Investment.
Luanda, Angola. October 2009.
Summary

Profitability is what attracts investments Factors that influence profitability Business climate model agriculture and forest investments Improving business climate is critical and incremental Zones offer short and long run solutions Framework for the sustainable development Angolas Savannah Principal stakeholders and actions for ARDEZs operations ARDEZs links to the country and to abroad Governance Model and Actions to Implement ARDEZs ARDEZs implementations steps
Profitability is what attracts investments

Expected profitability depends on the firms internal and external factors.
Firms
control directly the internal factors. Firms consider external factors in investment and other decisions.
Internal and External Factors Influence Profitability

More direct investments
+
Expected agriculture and forest business profitability +

+
Capacity to properly manage internal factors
Favaroble business climate
Business Climate Model for Agriculture and Forest Investments

GDP growth Agr-for investment atractiveness + Exchange rate stability Interest rates Tax burden Free trade Political risk + + Favorable SUPRA sectorial factors Adverse actions + + + Benefit reducing actions + Agr-for investment profitability + + + Favorable INTRA sectorial factors + Available agr-for vocation lands Favorable supports Cost reducing supports Benefit increasing supports Cost increasing actions Agr-for prod domestic market Agr-for productivity
+ + +
Favorable INTER sectorial factors --
Ecoonomic infrastructure
Credit accessibility
Enviromental restrictions
Labour Rule of law
Social infrastruture
Licences and permits
Capital treatment
Improving business climate is critical and incremental

Improvement is incremental because it requires:
Time
for investments to be executed Substantial financial resources Political conditions to chance policies Sequential steps Complex coordination of stakeholders and activities
Zones offer short run conditions to improve general business climate

ARDEZ - Agriculture and Rural Development Economic Zones:

Can be adopted and start operating relatively quickly Foster favorable business sub-climate that allow more profitable investments Serve to pilot and demonstrate actions and policies that can be applied to the rest of the country Facilitate technology adoption, training, and entrepreneurship skills development Mobilize private initiative Create business opportunities linked to agriculture and forest production (services, input provision, processing, urban services, etc) Create business opportunities also outside zones themselves
8
Framework for the sustainable development Angolas Savannah
Create the legal, institutional, and complementary infrastructure conditions for the implementation of ARDEZs Implement ARDEZs Monitor & evaluate ARDEZs to identify best practices Implement learned lessons to the rest of the country
9
Two parts framework
10
Principal stakeholders and actions for ARDEZs operations

National government: establish

ARDEZs rules based on best international practices; assure infrastructure outside the zones.
ARDEZs Regulatory Agency:

create zones; administrate competitively distributed incentives; supervise performance; report progress.
Administrator or Concessionary: administer zones, prepare

ARDEZ land and uses zoning, give licenses; give local service concessions; supervise performance; report to the Regulatory Agency; administer customs, promote zones among investors; etc.
Investors, contractors: undertake productive activities, introduce

technology, train workers and professionals, provide local public services and services associated to agriculture and forest businesses.
11
Governance Model and Actions to Implement ARDEZs

War, civil disturbance, terrorism, and sabotage Breach of contract Expropriation Non commercial risk mitigation MIGA Currency restrictions Mediation between investors and goverments
Investors - operators ARA-Autonomous Regulatory Agency ZM-Zone Management Contractor-Developer Communication Creation Eligible services of new activities Zone Private Management (or Licensing Contracts zones General On site Private or concesion) Contract Education, health, infrastructure Economic sector Zones' Annual M&E concesion On site policy roles Zones law ameneties services Reporting infrastruture Activity Procurement Investment Tax & fees Licenses Promotion Local roads policies provision incentives Free regimen Safeguards Capital & Zones Standards' trade Social Water, Waste & profit operational regimen repatriation impact compliance ILO Labor Non distorting Sewage services Conflict mediation regulation regulations , foreign regulation Land competitive enforcement Revenues exchange subsidies services zoning Government
Environmental, Land Duty free zoning WTO trade & customs policy social, occupational regulations inspection & safety safeguards Environmental standards & regulation Land zoning methodologies Occupational and safety standards Urban zoning
Visas & work permits
Off-site infrastructure
Zone's yearly M&E reporting
Forest aptitud zoning
Agriculture aptitud zoning FVL identification & monitoring
Storage &
Revenues. commercialization
Security services Training services
Other on site services

Business Development Services Extension
Electricity Railroads Roads Airport Communications
Training and R&D subsidies funding
Zone level procurement Competitive subsidies

Cost sharing Vouchers for training
Training facilities
Zone's Customs operations Export - Import licensing
Auditing reports M&E reports Cost sharing grants
R&D
Creation and start-up funding ARA
Justice services
Training vouchers
National development bank financing Zone private supervision contract Zone contract supervisor
Zone promotion services
Agriculture forest production
Input providers Industrial processing ZM Contracts, grants & licenses supervision contracts Technical & Accounting Auditors
Competitive subsidies management contract Competitive subsidies manager
Service, facilities, ameneties procurement
Contract Contract forest production farming Professionals Labor Land owners Entrepreneurs Supervision contractors
12
ARDEZs links to the country and to abroad

Health, education, potable water, sewage, security Input import substitution opportunities Qualified labor Exportable agr forest production Input supply Income Adapted technology dissemination Businees opportunities Domestic consumption of agro forest production Services provision Forest production contracts Agriculture production contracts Fuelwood, charcoal, timber Food Food security
Abroad Foreign exchange Machines, Equipments Technology Agro forest production inputs
ARDEZ
Country
domestic inputs Entrepreneurship Country unavailable Agrochimicals profissionais National capital National Profissionals agrochimicals
Capital
Workers
13
ARDEZs implementations steps

Design and formalize ARDEZs General Regulation Create Zones Regulatory Agency Identify and create 2-3 ARDEZs. Procure the hiring of ARDEZs administrator Complement infrastructure that reduce costs and risks to investors
14
Adicional information

Dr. Geraldo Calegar Agriculture Economist Geraldo.calegar@fao.org Dr. Jos Rente Nascimento Senior International Consultant
jrenten@gmail.com
15
Thank you
16

Framework For The Sustainable Development of African Savannah: The Case of Angola

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Framework For The Sustainable Development of African Savannah: The Case of Angola

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By Jose Rente Nascimento Senior International Consultant

Brasilia Brazil November / 2009

Abbreviations and acronyms

African Ag international + - competitiveness -

Altenative non farm jobs

Regional logistics costs African Ag Regional competitiveness +

+ Global market share -

Regional market share

+ + product + import cost International product price + international production cost

+ Labor Productivity cost + + Labor productivity + Training

soil nutrition mining

+ + Adapted technology Input price

Intervention leverage point

Source: Prepared by the author based on The World Bank, 2009.

Figure 01 Factors Affecting Agriculture Competitiveness in African Countries

Export favorable exchange rate Open trade policy Consumers' Welfare + + +

Price of imported inputs -

+ Communications Infrastructure + Roads +

Arable land stock

Urbanization + Population size

Acreage under production + -

Input providers + technology stock

Farming Pattern Technology/Action

Ease Doing Business Ranking

Global Competitiven ess Report

Rank: 125 out of 134

Human Development Index

Rank: 162 out of 177.

Index of Economic Freedom

Score: 47 out of 100. Rank: 162 out of 179.

Economic Freedom of the World

Score: 4.1 out of 10 Rank: 140 out of 141

Corruptions Perception Index (CPI)

Favorable INTER sectorial factors --

Labour Rule of law

Licences and permits

5-Environmental restrictions 6-Capital treatment

Table 3: Brief Description of the INTER Sectorial Factors.

INTRA Sectorial Factors

Table 4: Brief Description of the INTRA Sectorial Factors.

Box 1: Angola Land Tenure Issues.

Box 2: Land Concessions

PART I - General Business Climate

Incremental business climate improving measures adopted

M&E of strategy impacts

Agriculture, environment, and forests reconciled Adoption of RDSZ's RegulationsInsititutional framework

Access to land resources

Price stability increased Foreign exchange increased

Supervision & auditing operating

Development more sustainable

Enviromental impact Enviromental quality improved

RDSZ operational regulations published

2-3 RDSZ identified and Zone managers selected

PART II - Agriculture and Rural Development Economic Zones

21 i. 8 Off-site Strategic Economic Infrastructure

Adoption of ARDEZ Regulatory and Institutional Framework

Governance of the ARDEZ

War, civil disturbance, terrorism, and sabotage Breach of contract Expropriation

Non commercial risk mitigation MIGA

Currency restrictions Mediation between investors and goverments

Visas & work permits

Zone's yearly M&E reporting