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Highest Growth Potential in Zambia Because of Consolidation in the Ag Sector

20 January 2012

SOUTH WEST AFRICA - Predictions for the agricultural sector in africa are hopeful of huge growth in the coming years.

There is a positive outlook for corn production in the region, especially in Zambia, where government support for increased production in a context of high global prices and good export opportunities should encourage farmers to increase plantings.

The other grain sectors in the region are small by comparison, with only Angola capable of strong growth potential.

For sugar, it is predicted the highest growth potential in Zambia because of consolidation in the sector and support for the diversification of the economy.

However, there may be significant challenges to the region's agricultural sector, mainly in terms of infrastructure and dependence on government support, as well as on movements in global prices. The sugar sector in the rest of the region is comparatively small, with Angola again the only major alternative for sugar production.

Key views in the report include:

  • Zambian corn production growth to 2015/16: 32.6 per cent to 3.7mn tonnes. This will come as government support and expectation of high corn prices should lead to a continued rise in corn plantings in the coming years.
  • Angolan sugar production growth to 2015/16: 68.8 per cent to 84,400 tonnes. This will mainly come from base effects, as we do not yet see a significant government commitment to the agricultural sector and believe the country will remain a net importer over the long term.
  • 2012 real GDP growth: 10.9 per cent (up from 5.6 per cent in 2011).
  • Consumer price inflation: 9.7 per cent y-o-y in 2012 (down from 11.7 per cent y-o-y in 2011).

Further Reading

- You can view the full report by clicking here.

January 2012.

TheCropSite News Desk



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