The African Development Bank Group has approved a financing package worth $211.4 million to strengthen agricultural production and expand employment opportunities in eastern Angola. The initiative, known as the Eastern Region Agricultural Value Chain Development Project, aims to turn the region into a major food hub for Angola and neighbouring countries by capitalizing on its strategic location along the Lobito Corridor economic zone.
The project is expected to generate 7,500 direct jobs, with a commitment to allocate at least half to women and one-third to youth. Overall, an estimated 1.2 million people across six provinces—Lunda Norte, Lunda Sul, Moxico, Moxico Leste, Cuando, and Cubango—will benefit from the programme. Funding for the project combines a $190.4 million loan from the African Development Bank, $20 million from the Rome Process/Mattei Plan Financing Facility, and a $1 million grant from the Bank’s Transition Support Facility.
Bank representatives emphasized the transformative potential of this initiative, highlighting the opportunity to shift the Lobito Corridor from a logistics route into a catalyst for development, food production, and processing. Despite Angola’s vast agricultural potential, including 35 million hectares of arable land, the sector remains underutilized due to decades of conflict and limited investment. The eastern region, abundant in water and fertile land, has been especially affected.
The project aims to address these constraints through a comprehensive strategy to build a resilient and productive agricultural sector that supports both national food needs and export potential. One major component focuses on raising agricultural output by introducing climate-resilient, high-yield seed varieties through the TAAT programme. It will rehabilitate 2,500 hectares of irrigation infrastructure and develop 150,000 hectares of new farmland, primarily for cereal and rice cultivation. To support farmers, 3,000 Farmer Field Schools will be created to promote hands-on training and knowledge sharing.
New agribusiness centres will be established to drive entrepreneurship, value addition, and skill development, particularly for women and youth. The project also includes the rehabilitation of 400 kilometres of climate-resilient feeder roads to improve access to markets, processing facilities, and links to the Lobito Corridor. A key partnership with the African Fertilizer Financing Mechanism will vastly improve fertilizer access through a Partial Credit Guarantee scheme, enabling the delivery of 360,000 metric tons of fertilizer over the project’s lifespan. Youth empowerment is another priority, with skills development programmes and six mechanization centres providing tools and services to support 900,000 farmers, half of whom will be women.
Bank officials noted that the initiative will serve as a driver of inclusive growth by targeting women and young people, ensuring that economic opportunities reach the most underserved communities. By fostering employment and entrepreneurship, the project aims to support wealth creation and social mobility across the region.
The integration of the project into the Lobito Corridor Economic Zone enhances its regional significance. Four of the target provinces fall within this strategic transport corridor, providing access to markets in the Democratic Republic of Congo, Zambia, and ultimately the Indian Ocean. This positioning strengthens Angola’s potential to become a key supplier of agricultural products within southern Africa, elevating the project’s impact beyond national borders.
Implementation will take place over five years, from 2026 to 2031, under the leadership of Angola’s Ministry of Agriculture and Forestry. The initiative marks the first collaboration between the African Development Bank and the Government of Italy within the Lobito Corridor framework. The Angolan government will contribute $100 million in parallel financing, supporting land preparation, operational costs, and credit access through commercial banks and public financial institutions.
