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Article

Analysis of China–Angola Agricultural Cooperation and Strategies Based on SWOT Framework

by
Flavia Darcy Ferreira Cabral
1,
Changbin Yin
1,2,*,
Johan Landry Tchantchou Wague
3 and
Yanshu Yin
1
1
Institute of Agricultural Resources and Regional Planning, Chinese Academy of Agricultural Sciences, Beijing 100081, China
2
Research Center for Agricultural Green Development in China, Beijing 100081, China
3
School of Economics, Hefei University of Technology, Hefei 230009, China
*
Author to whom correspondence should be addressed.
Sustainability 2023, 15(10), 8378; https://doi.org/10.3390/su15108378
Submission received: 6 April 2023 / Revised: 6 May 2023 / Accepted: 18 May 2023 / Published: 22 May 2023
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Abstract

:
In the context of frequent food crises, Angola needs to improve the efficiency of agricultural production to meet the rigid domestic demand for food consumption. China has accumulated experience and technology in agricultural production over the years, it is a strategic partner for Angola, and Angola has a prominent place in the destination of Chinese investments. Therefore, agricultural cooperation between China and Angola based on mutual benefits will not only help Angola solve the problem of self-sufficiency in food but also provide a broad space for Chinese agricultural technology to “go global”, thereby providing reliable domestic food security solutions. Through the SWOT method, this study analysed Angola’s agricultural development prospects and the current situation of China and Angola’s agricultural cooperation to build a SWOT matrix and formulate reliable agricultural cooperation development strategies for promoting agricultural cooperation between China and Angola.

1. Introduction

Angola was once known as the “granary of Southern Africa”. It was not only self-sufficient in grain but also exported in large quantities. However, due to the serious damage to agricultural production caused by the civil war, Angola has changed from a historical exporter of agricultural products to a major agricultural shortage country and has to rely on imports of grain and meat to meet domestic demand [1]. In the past few decades after the end of the civil war, the government has always paid attention to the development of the country’s agriculture, taking the restoration of food production as an important task of national reconstruction, which is why the Angolan government has built several large-scale modern farms in the past few years [2]. In 2015, the Angolan government vigorously implemented the strategy of economic diversification and issued a series of policies and laws to attract investment, hoping to use the investment to replace imports, introduce advanced production technology and capital, and give priority to the development of agriculture, forestry, fisheries, animal husbandry, manufacturing, and processing industries [3]. The new Angolan President, Joao Lorenzo, has repeatedly expressed strong support for developing the country’s agriculture, ending food imports, and achieving food self-sufficiency.
Angola has rich agricultural resources and a huge market, and it needs to improve its agricultural production capacity to meet the rigid demand of domestic people for food consumption [4]. Agriculture is China’s primary industry; it has extensive experience in agricultural technology and management [5], and it is a key partner in Angola’s quest for social and economic development [6]. The Asian country has always had a strong presence on the African continent, with Angola among its top investment destinations [7]. Agricultural investment in Angola on the basis of mutual benefits will not only help Angola solve the problem of self-sufficiency in food but also be conducive to ensuring the balance of supply and demand in the market for Chinese agricultural products and effectively avoiding the risk of agricultural product import availability. Thus, the following study seeks to answer the following research question: how to promote closer agricultural cooperation between China and Angola in production, trade, science, and technology?
Thereby, this paper used SWOT to analyse the agricultural development prospects in Angola and the current situation of China’s agricultural investment in Angola, find out the strengths, weaknesses, opportunities, and threats of agricultural cooperation between China and Angola, and put forward strategies for promoting this cooperation.
The relevance of this research is based on the SWOT elements of China–Angola Agricultural Cooperation, which can allow a better understanding of the current situation as well as provide discussions about the Chinese agricultural investment in Angola and actions to fully use the advantages of the agricultural resources of both countries, deal with practical problems, and better perform comprehensive agricultural cooperation. This research also aims to complement the preceding literature, such as the studies conducted by [8,9,10,11].

2. Literature Review

2.1. Research on China’s Agricultural Investment in Africa

At present, many scholars have explored the case of China’s agricultural investment in Africa. Ref. [12] analysed China–Africa agricultural cooperation from the government level and suggested how the government should respond to it and help enterprises invest in Africa. Ref. [13] detailed the development characteristics of China–Africa farm cooperation and put forward suggestions for existing problems and prospects. Ref. [14] analysed specific measures that China should take in agricultural investment in Africa from a strategic perspective. Ref. [15] sorted out the history of agricultural cooperation between China and Africa from a time series perspective. They analysed the characteristics of agricultural cooperation between China and Africa from multiple perspectives and emphasized the mutually beneficial and win-win advantages of agricultural cooperation between China and Africa, suggesting improving Africa’s aid mechanism. Ref. [9] conducted a feasibility analysis of China’s investment in Africa’s agriculture, analysed the existing investment scale, field, and operation mode, and evaluated the current investment effect. Ref. [16] investigated the current situation and risks of China’s investment in Africa from the perspectives of the current situation of food planting in Africa, the current situation of Sino–African agricultural product trade, and the African agricultural investment policy. Ref. [17] analysed the reference indicators for selected African countries and the choice of entry paths to suggest how the government can promote enterprises to invest in agriculture. Ref. [18] pointed out the difficulties for agricultural technology transfer in the current investment in Africa, the bottleneck of rural development in Africa for Chinese enterprises, and the position of China–Africa agricultural relations.
Furthermore, Ref. [19] studied the development process of China’s agricultural investment in Ethiopia and summarized the experience and lessons. Ref. [20] started by analyzing classical theories such as comparative advantage, technological localization, and international production compromises, analyzing the feasibility of developing China’s investment in Africa’s agriculture, and putting forward specific strategies for agricultural investment. Ref. [21] conducted an in-depth study on the sustainability of China–Africa agricultural cooperation. They pointed out that the prospects for China–Africa agricultural cooperation are promising and China’s agricultural investment in Africa will continue to develop. Ref. [22] conducted a comparative analysis of the development of smallholder-based agriculture in China and Africa and concluded that: China and Africa have similarities in their agricultural operations; China–Africa agriculture is highly complementary in technology and resource endowments; China agricultural technology adapts to the development of Africa’s agriculture; China–Africa agricultural cooperation is promising.
Finally, Ref. [23] elabourated on the history of China’s assistance to Africa’s agriculture, emphasizing that the assistance mechanism for Africa should be improved and that enterprises should play a more significant role in agricultural assistance to Africa and look for investment opportunities. Ref. [24] discussed the problems encountered by China’s development of agricultural investment in Africa and pointed out that the Chinese government has insufficient policy support for investment in Africa. Ref. [25] surveyed the performance of social responsibilities by Chinese companies. The survey results showed that African people are not satisfied with Chinese companies’ performance on social responsibilities. In addition, the author also provides policy suggestions on how to build an excellent Chinese corporate image. Ref. [26] specifically described the development status of various agricultural subsectors in Africa and proposed the complementary advantages of agricultural resources between China and Africa. However, Ref. [27] illustrated the huge potential of China’s agricultural investment in Africa from the perspective of the comparison of agricultural production modes and the cooperation between China and Africa in technology and resources.
At the same time, due to the particularity of the political and social environment in Africa, the policy factors related to the introduction of agricultural direct investment in Africa have also become the key factors affecting investment in Africa’s agriculture. In order to attract foreign investment in agriculture, the African government has made many efforts. In order to change the situation of backward agricultural production, many African countries are actively formulating preferential policies to encourage the development of agriculture and increasing the introduction of foreign investment in agriculture. They have introduced a series of preferential measures for importing agricultural production equipment and agricultural fertilizers/inputs and, at the same time, gave preferential tax treatment to land transactions [28,29]. Refs. [30,31] systematically sorted out the investment laws and regulations in the agricultural field in Africa, indicating that African governments have taken a strong role in actively introducing agricultural investment. However, the former study reveals that the relevant government departments have weak systems of policy enforcement.

2.2. Research on SWOT Analysis

Many scholars use SWOT as a method for analysis, which has been used in different fields. This section will look at different ways that empirical studies employ SWOT.
Initially, SWOT analysis was conducted in the context of business environments in order to develop business strategies [32]. It has been increasingly successful as a management tool since the 1950s, when it was created by C. Roland Christensen and George Albert Smith, two Harvard Business School graduates [33]. However, its most notable achievement occurred in the 1980s, when the CEO of General Electric, Jack Welch, conducted a SWOT analysis of GE’s strategy, which led to the growth of GE’s productivity [34]. Today, SWOT analysis is used by most large companies [35]. In addition, the Office of Planning Services of the United Nations has effectively utilized SWOT analysis to evaluate proposals and improve staff accountability, resulting in faster processing of proposals, increased personal participation, more organized processes, improved departmental collabouration, and reduced use of expensive external consultants [36].
Later, SWOT was used to analyse larger geographical areas. Ref. [37] used SWOT to examine Venezuela’s political and economic situation; Ref. [38] used SWOT to analyse Africa’s energy sector; Ref. [39] used SWOT to identify the advantages and disadvantages of the development of urban agriculture in Malaysia and put forward strategies for solving food security in urban areas. Ref. [40] used the SWOT tool to determine the prospects of RES cooperation between Turkey and the EU member states. The results indicate that, due to its significant untapped renewable resource potential, Turkey has enormous opportunities for renewable resource deployment and collabouration of strategic importance and suggest the strength of national renewable resource development policies and the mitigation of economic barriers. In order to understand a range of decisions in many developed and developing economies, SWOT was also applied, including the current situation of agribusiness enterprises in Kazakhstan [41], the formulation of strategies for solving the problem of food security in Iran [42], and the improvement of the cocoa sector in Ghana [43]. This framework can help decision makers quickly identify target elements impacting the study region.
Furthermore, it was also applied in combination with other methods: SWOT was combined with PESTLE and qualitative research to analyse the cashew industry in India [44]. In introducing the current status of oil and gas production in the Caspian Sea and the prospects of constructing an oil and gas pipeline, a combination of SWOT and Delphi methods was used to assess five potential routes [45]. A SWOT analysis with the support of qualitative and quantitative research was applied to identify the elements of the internal (strengths and weaknesses) and external (threats and opportunities) environments that affect the cashew sector [46]. Ref. [47] also used SWOT analysis and qualitative research to describe the main challenges facing the domestic sector in Jember town and find alternative solutions. Through qualitative research and SWOT analysis, the stages of Ghana’s cocoa industry from consumption, production, and marketing aspects were analysed [43]. Ref. [48] used SWOT with the analytic hierarchy process (AHP) model to analyse Ghana’s Planting for Food and Jobs (PFJ) plan from three aspects: political and legal environment, economic environment, and social and natural environment. After the PFJ SWOT elements were found, they used the AHP tool and ranked the identified factors: natural conditions favourable for agriculture were pointed out as the highest strength with 59.3%; on the other hand, insufficient financial services were the highest weakness with 55.8%.
In summary, SWOT is a flexible tool that can be applied in different fields at the enterprise and government levels. Many authors use SWOT as a tool for analysis, and, over time, SWOT has been adapted with other methods for better results. In this study, we have combined SWOT and qualitative research to analyse Angola’s agriculture prospects and the current situation of China–Angola agriculture cooperation.

3. Analysis of Agricultural Development Prospects in Angola

3.1. Analysis of Agricultural Development Conditions in Angola

Angola is a nation in Sub-Saharan Africa and an example of the region’s economic potential, with an area of 1,246,700 km2 and a population of more than 33 million. It is bordered by the countries of Congo, the Democratic Republic of the Congo, Zambia, and Namibia [49].
The government started and maintained a robust economy between 2002 and 2011. However, Angola continues to experience the effects of decreasing oil prices and production levels, despite substantial advancements in macroeconomic stability and structural changes; the GDP fell from 69.31 billion USD in 2019 to 53.62 billion USD in 2020 [50].
A third of the GDP and about 90% of exports come from the oil industry. Although oil and natural gas exports contribute more than 50% of GDP, and 70% of government income, and 90% of export earnings, the rural population is directly involved in agriculture, and the sector continues to be the one with the most employment and livelihoods for Angola [51].
Table 1 helps to observe the population growth in Angola in the ten-year interval (2010–2020). When observing Table 1, it is possible to notice that the rural population has increased in a timid way when compared to the urban population, whose increase is more evident. This movement is related to the migratory flow towards urban centres, especially the region of Luanda, the country’s capital. The province of Luanda contains 27% of the total population residing in the country (MINFIN, 2021) [52]. In 2020, it was found that 66.8% of the population was allocated to urban areas and 33.1% to rural areas [53].
Regarding the conditions for agricultural production, about 58 million hm2 of Angola’s land is arable, of which 10% has been reclaimed for crop cultivation; it also has immense biodiversity, a great abundance of inner and coastal waters, aquatic biological resources, and other natural resources, combined with a dynamic rural population directly involved in agriculture, livestock, and fishing, which is suitable for the growth of a variety of crops. The resources for agriculture in Angola are presented in Table 2 [54].

3.2. Analysis of Crop Production in Angola

Angola’s agriculture can be divided into three ecological regions based on the country’s central climate and geographic features: the northern part of the humid climate is the primary production area for cash crops, with a focus on growing coffee, sisal hemp, sugar cane, rice, peanuts, and other crops; corn, cassava, rice, wheat, potatoes, beans, and other crops are primarily grown in the semi-humid central plateau region, while cattle are reared in the semi-arid south [49]. The following analysis of Angola’s agricultural output is focused on its four key crops: maize, rice, beans, and potatoes.
(1)
Maize
Maize is the largest food crop in Angola and the leading food for the Angolan people.
Despite a decrease of 19.6% in 2011–2012 compared to the previous year, there was a steady growth in production from the second quarter of 2012 to 2013 of 1,094,407 tonnes; according to the Angolan Ministry of Agriculture [55], this sharp growth is because, in the previous period, there were abnormal amounts of rain in the central part of Angola, the main geographical area of production. Since then, maize production in Angola has increased annually, while maize imports have followed the same trend. In 2020, the production volume was 2.3 million tonnes, and the importation was 42,293 tonnes; the area increased from over half a million ha in 2010 to over 2.1 million ha in 2020. Small farmers dominate Angola’s maize production [56]. Due to the lack of varieties, technologies, and inputs, the yield per ha is meager, and the country needs to import corn annually to meet domestic demand. In recent years, Angola has accelerated the development of maize, and the area sown to maize has been continuously expanded [54]. However, the sown area of maize is highly influenced by climatic circumstances and inadequate agricultural infrastructure, resulting in an unstable sown area over the years (See Figure 1).
(2)
Rice
The annual average temperature in Angola is 22°C, which is suitable for rice production. Rice can be grown year-round in Angola with irrigation. However, because of the scarcity of new rice varieties, Angola’s rice output is mediocre, its rate of chalky grain is high, and its aesthetic quality is subpar. Furthermore, the high temperature and humidity resulted in severe disease, insect pests, and grass damage to rice planting [1]. Farmers struggle to obtain herbicides and pesticides for production; diseases, insects, and weeds hamper rice production, and yield loss is severe. In addition, Angola’s rice processing technology is usually backward, and besides that, the processed products are of poor quality and lack competition in the market [3].
Angola produced 6000 tonnes of rice in 2020 and imported 430,000 tonnes. As a result, it reveals that the solid domestic demand could not be met, demonstrating the urgency to meet the demand and the supplier’s market pattern as we can see in Figure 2 [54].
(3)
beans
Dry beans and soybeans are the main types of beans grown in Angola. Dry beans are widely consumed in Angola. They are the favourite food and the primary nutrient source for average people’s diets [3]. Figure 3 illustrates that in 2020, Angola produced 372,000 tonnes, imported 25,000 tonnes, and the unit area was 915,000 ha. Except for 2012, the demand and import volume of beans in Angola were both on the rise, and the domestic output could not meet the domestic demand [54]. Consequently, there is a unique market opportunity for bean farming.
(4)
Potato
In 2020, Angola produced 446,111 tonnes of potatoes and imported 7080 tonnes, recording a significant drop of 209,270 tonnes between 2016 and 2017. The area harvested was 69,407 ha, and the imports accounted for 4.67% of the output, which was relatively small [56]. However, the yield per unit of Angolan potatoes is more than two times the average in China [5]. Thus, promoting a virus-free seed potato breeding system, improving seed potato breeding, and expanding the planting area have good market development potential (see Figure 4).

4. China–Angola Agricultural Cooperation

Agricultural cooperation between China and Angola can be divided into two stages:
(1)
Stage 1: Infrastructure first
The finance-driven infrastructure package is the starting point of China-Angola cooperation and highlights China–Africa cooperation. In 2002, China innovated the financing model and provided the first funds for Angola’s post-war reconstruction [57]. Following the Framework Cooperation Agreement between China and Angola, the Export–Import Bank of China has provided about 10 billion USD to Angola to help Angola in the construction of more than 130 projects relating to infrastructure and livelihood, including water supply, schools, roads, hospitals and power transmission, and transformation [58]. The large-scale infrastructure projects built by China have significantly contributed to Angola’s post-war reconstruction, provided the Angolan people with measurable benefits, and laid a strong foundation for advancing China–Angola cooperation from the oil area to the agriculture sector and other non-oil industries [59].
Among the infrastructure projects under the package cooperation agreement, livelihood projects such as agriculture account for a large proportion. According to the official data released by the Angolan government [60], in the first two loans of 2.5 billion USD and 2 billion USD, respectively, provided by the Export–Import Bank of China, agricultural infrastructure absorbed a total of 530.6 million USD in loans, accounting for 11.7% of the total loan of 4.5 billion USD, ranking fourth only after municipal works, education, and transport (see Table 3) [58].
Sinohydro International Engineering Co., Ltd. (Beijing, China) has undertaken four agricultural irrigation projects: the reconstruction of Lunda irrigation, the Canjala irrigation restoration and upgrading project, the Caxito irrigation reconstruction and upgrading project, and the Andulo irrigation project. Among them, the Caxito agricultural cooperative project includes the construction of 23 km of trunk canals, seven pumping stations, and 20 water intakes, which can irrigate 40,000 ha of farmland [60].
Andulo Agricultural College, built by Sinohydro, is also one of the package cooperation projects between the governments of China and Angola. The Andulo Agricultural College has trained many agricultural technical personnel for Angola and significantly promoted the agricultural development of the Bie province and the neighbouring Malange province.
In recent years, the Export–Import Bank has continued to provide loans for Angola to support its infrastructure construction under a package of cooperation. Although specific data on the use of Export–Import Bank credit in various industries has not been released, according to the assessment of the Economic and Commercial Office of the Chinese Embassy [61] in Angola, the overall trend is to support the livelihood of Angola.
(2)
Stage 2: Integrated farm project
The first phase of 1.5 billion USD provided by the China Development Bank to Angola is mainly used for agricultural loans. The basic model is that a Chinese enterprise signs a five-year contract with the Ministry of Agriculture of Angola, which is approved by the Chinese and Angolan governments, and receives an advance payment.
Gesterra, an Angolan state-owned company, represents the Angolan Ministry of Agriculture as the project’s owner [57]. All projects use the one-stop farm style, comprising farms, processing facilities, irrigation systems, the building of offices and housing for employees, and agricultural equipment procurement. Rice, corn, and soybeans are among the crops grown on farms, and several also raise livestock; farms range in size from 1500 to 12,000 ha [5].
Six of Angola’s seven farms built or under construction use CDB loans, except for the Guimba farm. During Premier Li Keqiang’s visit to Angola in May 2014, the Export–Import Bank of China signed three agreements with the Ministry of Finance of Angola, including the Loan Agreement for Angola’s Guimba comprehensive farm project, with a total value of 170 million USD [58].
The contract content of the seven farms is similar: in the first three years, the Chinese Government is responsible for land opening, infrastructure construction, and trial planting, and in the second year, formal operation and personnel training will be carried out to form an integrated model of planting, storage, and processing. All the grain will be transferred to Angola after harvest, and the farm and the equipment will be transferred to Angola after the expiration of the five-year contract [60]. Pedras Negras Farm in Cacuso town near Malange, started being built in August 2010, covering a total area of 12,000 ha, and the total contract value of the project exceeded 120 million USD; so far, 4500 ha have been cultivated, making Pedras Negras the fastest of the seven farms. Furthermore, Pedras Negras Farm is the largest overseas agricultural comprehensive development project contracted by Chinese enterprises and the first non-engineering project officially signed and implemented by CITIC Construction in Angola [61]. The Malange project is now bearing fruit with the establishment of a modern agricultural research centre and specific training for local farmers, such as how to cultivate seeds. The Angolan Ministry of Agriculture will complete the planning of all farms, and the specific plans will be adjusted after communication with Chinese companies. Gesterra’s primary responsibility is to manage the land and farms, while Chinese companies have signed contracts with the Ministry of Agriculture to carry out the projects [60].
Regarding geographical location, the farm projects contracted by China cover several provinces in Angola from north to south. The farthest farm is CEIEC’s farm in Moxico province, 1300 km away from the capital, which is also the most difficult to open land in [62]. The province has not received financial support for its growth since the conflict. Therefore, the residents anticipate the early start of the farm project contracted by Chinese businesses, providing work prospects for them. Specific information on the seven farms is shown in Table 4.
Chinese investments partially contribute to Angola’s decolonial socio-economic development [64]. The volume of Chinese resources allocated to the agricultural sector made it possible to complement Angola’s OGE (General State Budget) and the construction of agricultural enterprises, such as farms; in addition to enabling the acquisition of agricultural machinery, such as tractors, it also contributes to the training of local labour through the transfer of knowledge [65]. However, the sector is still fragile, and most of the producers (peasant families) remain without assistance from the Angolan government [66]. Therefore, for Chinese financing to have a significant impact on the productive sector, it must be targeted at small producers, who are responsible for most of Angola’s food production. Angola’s autonomous development depends on intensifying the productivity of family farming [67].
In 2021, Angola’s total import and export volume was 52.4 billion USD, including 27.48 billion USD and 24.92 billion USD in export and import, respectively, and ranked fifth in Africa. Angola’s leading exporters are China, the United States, India, France, Taiwan, South Africa, and Canada, and its importers are Portugal, China, the United States, Brazil, and South Africa [68].
In terms of exported agricultural products, it was about 51.5 million USD in 2019, and compared to the previous year, there was a significant drop of 108 million USD [69].
According to the world bank [51], in 2020, Angola ranked second among China’s trading partners in Africa (the second biggest import supply and the fifth largest export destination). In the same year, Angola’s exports to China reached 12.7 billion USD, an increase of 50.73%, and its imports from China reached 1.75 billion USD.
In terms of agricultural product trade, in 2019, China exported 61 kinds of agricultural products to Angola, with a total output of 45,956 tonnes, including fennel, apple, and bacon [70]; the overall scale of agricultural trade between China and Angola is increasing daily (see Figure 5).

5. Methodology

A SWOT analysis can be carried out with the help of a matrix, according to Lobriser and Abplanalp (2006) [71]. Firstly, there is a blank matrix with four elements (strengths, weaknesses, opportunities, and threats). Table 5 contains helpful questions for each section.
Qualitative research can be used to fill up the sections and respond to the questions [73]. The next stage is to summarize and rank related arguments in order of priority, starting with the most crucial [74,75,76]. Through qualitative research, all relevant data related to the study were collected, and the necessary attributes to promote China–Angola agricultural cooperation were outlined and analysed.
Secondary and qualitative data were reviewed and collected from research findings, literature, and other publications conducted by the Food and Agriculture Organization of the United Nations (FAO, Rome, Italy), the Ministry of Finance of Angola (Luanda, Angola), the Ministry of Agriculture and Forests of Angola (Luanda, Angola), the World Bank (Washington, DC, USA), and other researchers and organizations.

6. Results and Discussion

6.1. SWOT Analysis of China–Angola Agricultural Cooperation

To fully utilize the advantages of the two countries’ agricultural resources, deal with practical problems, and better carry out comprehensive agricultural cooperation, this study analysed the prospects of agricultural development in Angola and the current situation of China–Angola agricultural cooperation and found out the SWOT elements of that cooperation. (see Table 6).

6.1.1. Strengths of Angola’s Agricultural Sector

(S1) Good agricultural resource endowment.
Angola is one of the most suitable areas in the world for developing agricultural production, with a vast area of fertile land, densely covered rivers, adequate temperatures, and abundant rain [49]. It has great potential to develop agriculture. Before Angola’s independence in the early 1970s, it was self-sufficient in food and able to export it in large quantities [1]. In addition, Angola also has extensive pasture; its pasture and mowing grassland are about 29 million hm2, natural conditions suitable for livestock production. Due to its proximity to the Atlantic Ocean, Angola has rich fishing resources and good natural conditions for year-round operations [53]. Therefore, Angola is endowed with rich natural resources for planting, animal husbandry, fishing, and agricultural processing.
(S2) Has a good foundation for cooperation.
After the tragic event in 2002, there was still much to be done. Some Chinese enterprises actively “went global” to participate in Angola’s post-war reconstruction and cooperated in oil, construction, telecommunications, agriculture, and other fields, promoting vigorous economic development cooperation between China and Angola [61]. In 2002, the bilateral trade volume between China and Angola was only 1.148 billion USD; in 2003, it was 2.353 billion USD; in 2006, it reached 11.827 billion USD, an increase of 10 times more than that in 2002 [70]. In recent years, bilateral trade between China and Angola has developed rapidly, and economic cooperation has been further advanced [77]. Angola has become one of China’s four strategic partners in Africa [78]. Angola’s agricultural cooperation demand with China includes planting, animal husbandry, fishing, and agricultural processing. There is a broad space for Chinese enterprises to invest in Angolan agriculture.
(S3) Land ownership is clear.
Compared with most African countries, Angola has a more precise land ownership relationship. State-owned enterprises such as Gesterra manage most of the country’s land resources on behalf of the government, and farmers can apply for certain land for cultivation free of charge [78]. With land in hand, the Angolan government has focused more on developing agricultural production on a large scale than on spreading technology to smallholder farmers and promoting contract farming.
(S4) Human resources are abundant and relatively cheap.
Data from the National Bureau of Statistics of China [79] show that from 2014 to 2018, the labour force in China remained at about 800 million, accounting for 58.13% of the total population, of which 26.7% were engaged in agriculture, forestry, animal husbandry, and fishing. Statistics from the World Bank [51] show that in 2021, the total labour force in Angola was about 13.2 million, accounting for 70% of the total population, and about 55% of the labour force was engaged in the agricultural industry. In addition, the labour price is the lowest in Southern Africa.

6.1.2. Weakness of Angola’s Agricultural Sector

(W1) Poor infrastructure.
Lack of adequate guarantees for agricultural production, poor transport facilities, difficult access to many parts of Angola, and the risk of landmines in some areas have exacerbated the social and economic impact and severely restricted the growth of agricultural production [54]. Despite the abundance of water resources in Angola, water facilities are poor and cannot be used effectively. Built during the Portuguese colonial period, the water infrastructure was destroyed during the civil war and is largely unusable. Water conservancy facilities built after the war are not only few but also lack reasonable maintenance, and the effective utilization rate is not high [2]. Due to poor agricultural infrastructure, a lack of effective transformation of agricultural land, and a lack of the effective guarantee and sustainable development of agricultural production, we can only rely on the weather; production, drought, and waterlogging disasters will cause severe production reduction [80].
(W2) Primitive mode of production and serious shortage of inputs in agricultural production.
Agricultural production in Angola belongs to the simple and primitive farming methods of the small-scale peasant economy [81]. The land is burned and cultivated with hoes and shovels rather than agricultural machinery. The seeding method is broadcast without field management. In agriculture, few draught animals are used for farming, and agricultural machinery and tools are very short [82]. Sowing, planting, and harvesting all depend on artificial means. The seeds used by Angolan farmers are often retained or replaced by a series of old local varieties, which are not purified and rejuvenated for a long time and are seriously mixed and degraded, and the production potential decreases year by year [83]. In addition, extensive cultivation makes it impossible to improve the yield significantly. At the same time, Angola does not produce chemical fertilizers, pesticides, or other agricultural means of production; the agricultural means of production mainly rely on imports, which not only have a small market supply but also have a very high price [81]. The vast majority of farmers can not afford it and do not have the habit of accumulating, stacking, and using farm manure. In addition, few farmers use a small amount of fertilizers and pesticides; they do not use fertilizers, pesticides, and other agricultural production materials; crops are in a natural growth state, limiting crop yield increases [54].
(W3) Weak technical force and lack of technical support for agricultural production.
Agricultural production lacks the technology to support the natural environment of high temperature and humidity in Angola, resulting in severe crop disease and insect and grass damage to agricultural production [81]. However, there is no specialized research unit and scientific or technical personnel to conduct targeted research and prediction of disease, insect, and grass damage, and a serious lack of effective chemical control drugs and control technology [84]. In the practice of agricultural production, no corresponding prevention and control measures have been taken at all. Therefore, disease, insect pests, and weeds have caused considerable losses to agricultural production [85]. Due to the weakness of agricultural education, the lack of professional and technical personnel, the lack of good extension agencies, and the lack of cooperation and exchange between established institutions [86], farmers rarely carry out direct technical training and demonstration. Therefore, agricultural growers lack technical knowledge and practical operation skills under adequate guidance, and agricultural production seriously lacks technical support.

6.1.3. Opportunities

(O1) Great potential for agricultural development.
Angola still has vast market space to develop agriculture. First, domestic grain production in Angola is severely deficient, and imports remain the main source of supplies [87]. Therefore, increasing agricultural production is essential to addressing the current domestic supply gap. Simultaneously, the average annual growth rate of Angola’s population is 3.2%, the neonatal mortality rate and life expectancy still have much room for improvement, population growth tends to rise, and so does the need for food [50]. Furthermore, central and southern Africa is the most food-scarce region in the world, and neighbouring countries have a massive demand for food.
(O2) The advance of China’s agricultural technology.
China has accumulated years of technology and experience in agricultural production, water conservation and irrigation, agricultural processing, and other fields [5]. Take maize, the main grain crop in Angola, as an example. Currently, the highest area harvested in Angola is only over 2 million tonnes/ha [56], while the actual area of corn collected in China is 43.3 million tonnes/ha [88]. The corps’ technology, adapted to local conditions such as soil, climate, and precipitation, can greatly increase maize production in Angola. Angola has a suitable climate, abundant water, and fertile soil, and maize can be planted twice a year. China can bring advanced technology and experience in farm management to Angola in cooperation and improve agricultural productivity and yield per unit area.
(O3) Food security is due to the Chinese economy.
With rapid economic development, the cost of agricultural production materials and labour power continues to rise, and the development of domestic grain production has encountered difficulties and limitations; it is urgent to expand and extend production and sales areas and use global resources to solve the issue [89]. In the next 10 years, China’s food and agricultural production of agricultural resources and labour constraints will become more prominent, and the import of primary agricultural products will increase substantially [90]. Foreign agricultural cooperation expands China’s agricultural technology popularization, and application scope can improve other countries; the world’s food supply [91] can not only relieve the contradictions of the global food and agricultural products demand but also be imported to China at a low cost to provide a reliable guarantee concerning domestic food security solutions [92].

6.1.4. Threats

(T1) The global COVID-19 outbreak in 2019.
At present, the number of infected people is still rising. Furthermore, due to the epidemic’s impact, each country’s economic growth has slowed, the national fiscal policy has been adjusted accordingly [93], the import and export management of agricultural products has been stricter, and the inspection and quarantine of imported and exported goods have been strengthened [94]. These factors have a particular impact on the trade cooperation between the two countries, and the World Health Organization (WHO) [95] stated that the epidemic is far from over and that new variants could emerge, which could pose a threat to future cooperation.
(T2) Climate change.
The negative impact of climate change and its economic impact on developing countries such as Angola have piqued the interest of stakeholders [96]. Hot, dry weather can harm soil moisture and nutrients, while heavy rain can cause flooding, reducing yields.
Increasing droughts, late or early rains, floods, reduced annual precipitation, and higher temperatures, particularly in Angola, have severely exposed farmers’ vulnerability due to their over-reliance on the agricultural sector [97].
Therefore, farmers must adopt climate change mitigation strategies and technologies because future climates will change even when comprehensive mitigation efforts are successfully implemented [98].

7. Strategies and Recommendations for Agricultural Cooperation between China and Angola

Based on SWOT analysis, various elements (SWOT) were matched, combined, and systematically analysed to get different cooperative strategies.

7.1. SO Strategies

(SO1) Expand the scale of Angola’s food production.
China should take advantage of agricultural technology, strengthen cultivation techniques, and use Angola’s superior agricultural resources conditions, especially to fully tap the potential of grain production in the central plateau of Angola, aimed at solving the food gap problem in southwest China, by actively seeking cooperation in the cultivation of rice and other crops. Providing excellent germplasm, advanced cultivation techniques, and a complete set of advanced equipment and machinery to enhance the level of Angola’s food production, which can create multiple primary production and processing jobs at the same time, inspire Angola’s export potential of grain production, and gradually achieve Angola’s rice development on a large scale, to ensure food security and establish win-win outcomes.
(SO2) Strengthen cooperation in the construction of agricultural demonstration parks.
In 2009, the Ministry of Agriculture of China started the establishment of the national modern agriculture demonstration zone; China has accumulated much valuable experience in constructing the modern agriculture demonstration zone. China and Angola can further strengthen cooperation in agricultural and industrial demonstration parks, pool agricultural intellectual resources, labour resources, and natural conditions, and give full play to land value, resource utilization rate, and labour productivity. In areas with relatively good development conditions, attention should be paid to technological digestion, absorption, and innovation, standardized production demonstration, improved seed breeding research, processing technology demonstration, warehousing and logistics services, and a series of functional constructions that are of both application and exploration significance for the development status of Angola; auxiliary functions such as leisure, tourism, and training should be added. The integration and utilization of local components can be carried out to gradually develop agricultural and industrial chain cooperation, with agricultural technical cooperation as the starting point.

7.2. ST Strategies

(ST1) Establishment of sustainable modern agricultural production management system.
Through technology exports, improved technical standards and regulations of cropping and breeding, agricultural infrastructure, and other aspects in Angola guide agricultural production and management with a complete agricultural science and technology system, improve the production environment, and standardize production behaviour. It will help Angola gradually eliminate the extensive mode of production, transform the scattered and self-sufficient mode of production into a standardized and large-scale one, and improve its ability to withstand natural disasters. It will also help Angola adjust its agricultural production structure and make it more attractive to foreign investment.

7.3. WO Strategies

(WO1) Priority to carry out collective farming in areas with relatively perfect infrastructure construction.
As the current China–Angola agricultural cooperation projects involve introducing and trial planting of wide varieties, technology demonstration promotion, etc., there are specific requirements on the infrastructure conditions of water-benefit irrigation, transportation, and others. Therefore, in planning, priority should be given to areas with relatively excellent infrastructure, such as transportation, water, electricity, and communication in Angola, to reduce unnecessary labour, material resources, and transportation costs and improve cooperation results.

7.4. WT Strategies

(WT1) Overall implementation of comprehensive agricultural cooperation projects.
Most China–Angola agricultural cooperation projects are single-content projects, focusing on technical assistance and transfer, variety introduction and demonstration, etc. However, agricultural technology alone is not enough to make Angola a modern agricultural country with a market economy. Therefore, the government departments of the two sides should encourage the implementation of comprehensive agricultural cooperation projects and make overall arrangements for cooperation contents such as agricultural science and technology, agricultural machinery and equipment and infrastructure, and agricultural organization and management to improve and even reform all key links of agricultural development in Angola and remove inherent defects and disadvantages.
(WT2) Strengthen the government’s comprehensive support for agriculture.
Agriculture is a weak industry with high risk and low profit due to its long production cycle and high dependence on natural parts. This kind of industry weakness determines the government’s need to support and protect agriculture. The Chinese and Angolan governments can help foreign-related agricultural investment enterprises avoid political and commercial risks by formulating specific preferential policies on credit, taxation, and insurance, improving laws, regulations, and various policy systems, and establishing risk prevention mechanisms and warning management systems.

8. Conclusions

The present study aimed to analyse the prospects for agricultural development in Angola and the current situation of China’s agricultural investment in Angola through SWOT analysis, identify the strengths, weaknesses, opportunities, and threats of China–Angola agricultural cooperation, and suggest strategies for promoting this cooperation. The main result showed that Angola has abundant agricultural resources and a broad market space with huge development potential. In addition, it hopes to learn from China’s successful experience to help it solve food security and promote economic growth and rural development, which undoubtedly provides more development space and unlimited business opportunities for Chinese agricultural enterprises.
The SWOT analysis only came to reaffirm that there is excellent potential for China–Angola agricultural cooperation’s success. Additionally, this methodology adds necessary information to the planning of agricultural cooperation, as it positions China–Angola in the current scenario of agricultural cooperation and enables the establishment of strategies to deal with practical problems and better carry out comprehensive agricultural cooperation.
This research, like all others, had some limitations. Firstly, agricultural investment is rarely taken as a statistical target in various statistical databases, and China–Angola relations are rarely taken as the main object of study in international databases, which makes it difficult to obtain more extensive statistical data.
Secondly, in the research, we did not interview several farmers and other stakeholders from both countries; therefore, for future investigations, it is recommended to carry out field studies that would allow a deeper analysis of Chinese agricultural enterprises and Angolan farmers’ realities.

Author Contributions

Conceptualization, F.D.F.C., C.Y. and J.L.T.W.; methodology, F.D.F.C. and C.Y.; validation, F.D.F.C. and C.Y.; formal analysis, F.D.F.C., C.Y., J.L.T.W. and Y.Y.; writing—original draft preparation, F.D.F.C.; writing—review and editing, F.D.F.C.; visualization, F.D.F.C., J.L.T.W. and Y.Y. supervision, C.Y.; funding acquisition, C.Y. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

Not applicable.

Conflicts of Interest

The authors declare no conflict of interest.

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Figure 1. Area and production of maize in Angola during 2010–2020. Source: [56].
Figure 1. Area and production of maize in Angola during 2010–2020. Source: [56].
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Figure 2. Production and imports of rice in Angola during 2010–2020. Source: [56].
Figure 2. Production and imports of rice in Angola during 2010–2020. Source: [56].
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Figure 3. Area and production of beans in Angola during 2010–2020. Source: [56].
Figure 3. Area and production of beans in Angola during 2010–2020. Source: [56].
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Figure 4. Area and production of potato in Angola during 2010–2020. Source: [56].
Figure 4. Area and production of potato in Angola during 2010–2020. Source: [56].
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Figure 5. Agricultural trade scale between Angola and China from 2009 to 2019. Source: [70].
Figure 5. Agricultural trade scale between Angola and China from 2009 to 2019. Source: [70].
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Table
Table 1. Angola’s economic development situation and prospects in 2020.
Table 1. Angola’s economic development situation and prospects in 2020.
YearGDP Billion (USD)GDP Per Capita (USD)Population, Total (Billion)Urban Population (% of Total Population)Rural Population (% of Total Population)Employment in Agriculture (% of Total Employment)Agriculture Value Added (% of GDP)
201081.703.49743123.3659.840.248.96.2
2011109.444.51112924.2660.539.551.25.8
2012125.004.96228625.1961.338.751.26.1
2013133.405.10133826.1562.038.051.26.5
2014137.245.05860627.1362.737.351.17.5
201587.223.10060428.1363.436.651.29.1
201649.841.70977729.1564.135.951.29.8
201768.972.28301830.2164.835.251.010.0
201877.792.48768731.2765.534.550.98.6
201969.312.14250332.3566.233.848.96.7
202053.621.60394833.4366.833.250.89.5
Source: [51].
Table
Table 2. Agricultural resources in Angola.
Table 2. Agricultural resources in Angola.
Agricultural ResourcesDescription
Arable land areaAngola has a total geographic area of 1.2467 million km2 with approximately 58 million ha of arable land, and only 5,673,259 ha were cultivated in 2017–2018. Of the total cultivated area, 92% was done by family farming, and commercial farms cultivated the remaining area.
Water resourcesThe country had more than 148.4 billion m3 of renewable water resources available in 2018, of which less than one percent is withdrawn annually. About two-thirds of the total water withdrawal is used in agriculture each year.
Irrigated areaIn Angola, agriculture is predominantly rainfed; only about one percent of the cultivated area is irrigated annually.
PopulationAbout 33% of the population lives in rural areas, and they are directly involved in the agriculture sector. Family farming is the basis of Angolan agriculture, responsible for more than 80% of the national agricultural production and about 97% of the total area under exploration.
Source: [54].
Table
Table 3. Infrastructure construction supported by the first two credits provided to Angola by the Export–Import Bank of China (2004–2010).
Table 3. Infrastructure construction supported by the first two credits provided to Angola by the Export–Import Bank of China (2004–2010).
IndustryTotal Value (Million USD)Percentage (%)
Municipal works905.520
Education642.514.2
Transport572.812.6
Agriculture530.611.7
Energy514.111.3
Health409.39
Telecommunication408.29
Livelihood project2705.8
Water supply252.85.5
Justice41.10.9
Total4547100
Source: [5,60].
Table
Table 4. Large integrated farm projects undertaken by China Development Bank and Export–Import Bank in Angola.
Table 4. Large integrated farm projects undertaken by China Development Bank and Export–Import Bank in Angola.
Name of the FarmGeographical PositionInvestorsType of CompanyProject Start DateLine of Credit (Million USD)Farm Size (ha)Plant Species
Pedras NegrasMalangeCITIC Constructionstate-owned enterprise201116012,580corn, soybean
Sanza PomboUigeCITIC Constructionstate-owned enterprise20121291610rice, cattle
LongaCuando CubangoCAMC Engineeringstate-owned enterprise201277.61500rice
KamacupaBieCAMC Engineeringstate-owned enterprise201288.644500corn,
GuimbaZaireCEIECstate-owned enterprise2014683000Corn, Soybeans
CamaiangalaMoxicoCEIECstate-owned enterprise2013793000Corn, Soybeans
ManqueteCuneneCEIECstate-owned enterprise2014 45,000rice
Source: [63].
Table
Table 5. Questions for developing the strengths, weaknesses, opportunities, and threats (SWOT) analysis matrix.
Table 5. Questions for developing the strengths, weaknesses, opportunities, and threats (SWOT) analysis matrix.
Strengths (Internal)Weaknesses (Internal)
Which advantages of the cooperation are there?
What has been done well?
What do others see as advantages for
the cooperation?		Which drawbacks of the cooperation are there?
What can be done better?
What should not occur?
Opportunities (external)Threats (external)
What factors have a favourable impact on cooperation?
What are the potential opportunities for that cooperation?
Which opportunities can arise from trends when the two countries corporate?		Are there any barriers that could threaten China and Angola’s agricultural cooperation?
Source: modified by the authors from [48,72].
Table
Table 6. China–Angola agricultural cooperation SWOT matrix.
Table 6. China–Angola agricultural cooperation SWOT matrix.
Strengths of Angola’s Agricultural SectorWeakness of Angola’s Agricultural Sector
S1. Good agricultural resource endowment
S2. Has a good foundation for cooperation
S3. Land ownership is clear
S4. Human resources are abundant and relatively cheap		W1. Poor infrastructure
W2. Primitive mode of production and serious shortage of input in agricultural production
W3. Weak technical force and lack of technical support for agricultural production
OpportunitiesSO strategiesWO strategies
O1. Great potential for agricultural development
O2. The advance of China’s agricultural technology
O3. Food security is due to the Chinese economy		SO1. Expand the scale of Angola’s food production
SO2. Strengthen cooperation in the construction of agricultural
demonstration parks		WO1. Priority to carry out joint farming in areas with relatively perfect infrastructure
ThreatsST strategiesWT strategies
T1. The global COVID-19 outbreak in 2019
T2. Climate change		ST1. Establishment of sustainable modern agricultural production management system
WT1. Overall implementation of comprehensive agricultural cooperation projects
WT2. Strengthen the government’s comprehensive support for agriculture
Source: author’s own analysis.
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Cabral, F.D.F.; Yin, C.; Wague, J.L.T.; Yin, Y. Analysis of China–Angola Agricultural Cooperation and Strategies Based on SWOT Framework. Sustainability 2023, 15, 8378. https://doi.org/10.3390/su15108378

AMA Style

Cabral FDF, Yin C, Wague JLT, Yin Y. Analysis of China–Angola Agricultural Cooperation and Strategies Based on SWOT Framework. Sustainability. 2023; 15(10):8378. https://doi.org/10.3390/su15108378

Chicago/Turabian Style

Cabral, Flavia Darcy Ferreira, Changbin Yin, Johan Landry Tchantchou Wague, and Yanshu Yin. 2023. "Analysis of China–Angola Agricultural Cooperation and Strategies Based on SWOT Framework" Sustainability 15, no. 10: 8378. https://doi.org/10.3390/su15108378

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