The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
Project Information Document (PID)
Concept Stage | Date Prepared/Updated: 08-Dec-2021 | Report No: PIDC32659
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
BASIC INFORMATION
A. Basic Project Data OPS TABLE
Country Project ID Parent Project ID (if any) Project Name
Angola P177305 Angola Agricultural
Transformation Project
(MOSAP3) (P177305)
Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead)
AFRICA EAST Jan 24, 2022 May 26, 2022 Agriculture and Food
Financing Instrument Borrower(s) Implementing Agency
Investment Project Financing Ministry of Finance Ministry of Agriculture and
Fisheries
Proposed Development Objective(s)
To increase productivity and climate resilience of and to promote commercialization for smallholder farmers in the
selected project areas.
PROJECT FINANCING DATA (US$, Millions)
SUMMARY-NewFin1
Total Project Cost 415.00
Total Financing 415.00
of which IBRD/IDA 300.00
Financing Gap 0.00
DETAILS -NewFinEnh1
World Bank Group Financing
International Bank for Reconstruction and Development (IBRD) 300.00
Non-World Bank Group Financing
Other Sources 115.00
FRANCE: French Agency for Development 115.00
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
Environmental and Social Risk Classification Concept Review Decision
Substantial Track II-The review did authorize the preparation to
continue
Other Decision (as needed)
B. Introduction and Context
Country Context
1. Angola is a resource-rich, fast-urbanizing country with considerably young population and high poverty rates.
The country is the third largest economy in Sub-Saharan Africa (SSA) and the second largest oil producer in SSA.
During the period of high oil prices (2005-14), it has achieved rapid economic growth. However, growing oil
wealth resulted in an overvalued currency, which fostered import dependency and hindered investment in the
non-oil tradable sectors. Currently, its population of 32 million, of which 45 percent is under 15 years of age and
52% women, is growing at an annual rate of 3.3 percent. Following the end of the civil war in 2002, the rural
population migrated to the cities in search of greater economic opportunities – this rural-urban migration was
also impacted by the internal displacement caused by the war. As a result, the urban population now represents
about 65 percent of the total population, and still grows at 4.5 percent per year, one of the fastest urbanization
rates of the continent. About a quarter of Angola’s population lives in the capital Luanda. Poverty remains high
at 56.4 percent and concentrated in rural areas at 56.7 percent of total poor. Poor rural infrastructure and lack
of access to services – schooling, improved water, and sanitation – exacerbate the non-monetary dimensions of
poverty. Low access to paved roads, for example, acts as a major constraint for the reduction in rural poverty
and is highly correlated to low market access, increased food insecurity, school dropouts, and low medical
consultations. Inequality is high and grew from 43 to 51 on the Gini index during the 2008-2018 period.
2. Angola endured a fifth year of recession in 2020. The country fell into a recession when oil prices declined in
2015 and the sharp drop in oil prices in early 2020 further exacerbated the economic situation. Gross Domestic
Product (GDP) declined by 5.2 percent in 2020, following a cumulative decline of 5.6 percent over 2015-19. Both
the oil sector (-8 percent) and non-oil sector (-4 percent) contracted in 2020. Angola’s per capita Gross National
Income (GNI) in nominal US$ in 2020 has fallen to less than half its 2015 peak. Poverty, defined as the proportion
of the population living below the poverty line (less than US$1.90 a day), is likely to continue increasing further
in the near-term due to a combination of loss of employment opportunities and higher food inflation. Estimates
suggest that nearly 2.6 million additional people fell into poverty between 2018 and 2020 alone. The size of the
public debt, much of it in foreign currency, was further boosted by currency depreciation, reaching 135 percent
of GDP in 2020.
3. The country ranks low on the Human Capital Index (HCI), largely due to persistent under-investment in social
sectors. HCI performs below income comparators and the SSA’s average at all levels. There is also ongoing work
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
needed to reduce the gender gap in Angola in a variety of sectors. For example, 27 percent of women are less
likely to be salaried workers compared to 40 percent of men. Moreover, of those employed, 81 percent of
women hold vulnerable employment compared to 54 percent of men. Investment in human capital, effective
institutions and a favorable business environment are critical for economic diversification and job creation.
4. The COVID-19 pandemic has made acutely apparent the importance of ensuring access to safely managed water
supply and sanitation (WSS), which are particularly important given Angola's limited-service coverage. In March
2020, Angola joined the ranks of countries with confirmed increasing cases of COVID-19 infection. This viral
outbreak is posing an even greater threat to the health and welfare of the Angolan population, due to the lack
of WASH services and ongoing difficulties in addressing recurrent infectious diseases (e.g., malaria, cholera,
typhoid). Epidemics of vector-borne diseases and water-borne diseases in Angola are likely to become worse
under climate change, due to both increases in frequency and severity of droughts and flooding, expanding the
geographic range and the seasonality of events and associated vectors (mosquitoes) and conditions (flood
waters, unsanitary conditions). As of 2015, access to improved drinking water sources had grown to 54 percent
(63 percent in urban areas), a very low rate for an upper-middle income country. Access to piped water service
only averaged 29 percent nationally (55 percent urban, 9 percent rural) and access to sanitation averaged 35
percent (57 percent urban and 17 percent rural).
Sectoral and Institutional Context
5. Agriculture was the motor of the colonial economy, but protracted conflict eroded the sector’s technical
capacity, destroyed infrastructure, and isolated production areas from markets; and these issues remain largely
unaddressed. In the colonial period, agriculture had a dual structure, with a commercial sector of about 6,400
farms (800,000 ha) managed by Portuguese settlers using modern technologies and a traditional sector
composed of smallholder family farms cultivating about 3.4 million ha. After independence, most Portuguese
settlers left the country and many former commercial farms and plantations were converted into state farms,
which have since been privatized. The civil war resulted in a virtual collapse of commercial production as large
numbers of rural inhabitants either fled or reverted to subsistence agricultural production. In fact, Angola’s once
thriving export of coffee, cotton, tobacco, and sugarcane all but ceased by the 1990s. Although the situation has
improved with the rehabilitation of main roads and bridges and clearance of mines, the agriculture sector has
not yet fully recovered from the destruction and decapitalization of the conflict period.
6. In recent years, however, agriculture’s share of Angola’s economy has grown rapid ly, and the sector
provides opportunity for economic diversification and food and nutrition security. In contrast to the
rest of the economy, the sector growth averaged 4.9 percent in the 2015–19 period. Ranking in the
86th percentile globally, this rapid growth rate led to agriculture’s share of GDP increasing from 5.8 to
10 percent of Angola’s GDP during the 2011–2017 period. The cultivation of main food crops has
expanded rapidly, with cereals (maize), beans and oilseeds (peanuts), and tubers (cassava) production
growing by 47, 42, and 14 percent respectively between 2012 and 2016. Fruits and vegetables grew at
12 and 4 percent respectively, with banana and sweet potatoes growing the fastest. Livestock products
grew at the slowest rate, except chicken meat, which started from a low base (CPSD 2019). The broad-
based sector growth can be linked to the 2018-2020 currency devaluation (natural incentive for
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
domestic producers), cultivated area expansion by returning land to agriculture after the civil war, and
the Government’s investments in public infrastructure, cooperatives, and fisheries .1
7. However, agricultural productivity remains low due to low access to improved technologies and access to
services by smallholder farmers who account for 80 percent of production and 90 percent of agricultural land.
National agricultural output is well below demand, and Angola imports more than half of its food. The average
yields for cereals (0.9 MT/ Ha) and vegetables (3.6 MT / Ha) have been low and stagnant, currently at 1/4th and
1/5th of global averages respectively. Maize yields are 1/4th of regional leader South Africa and wheat yields are
1/6th of its neighbor Namibia. Yields for beans and soybeans are low relative to SSA comparators like Kenya,
Ghana, and Zambia. Small-scale and subsistence-oriented family farms – averaging 2.3 ha in size –account for
80 percent of production and 92 percent of land under cultivation, with community holdings and commercial
farms making up 5.8 percent of land. Almost one-third of agricultural households are headed by women, who
are responsible for 70 percent of traditional subsistence agriculture and for 24 percent of commercial
agriculture. Productivity growth is constrained by the use of poor agronomic practices and low access to
improved technologies like climate-smart seeds, agro-chemicals, and mechanization. The domestic markets for
seeds, fertilizers, tools, machinery, and other agricultural inputs are poorly developed and they are largely
imported and unaffordable. Farmers have poor access to extension services, which has led to limited information
related to production and marketing. Furthermore, only 2 percent of farmers report access to credit and
consequently, investments with high upfront costs are limited. Producer organizations could aggregate demand
and enhance access to inputs and services, but they remain weak and collective decision-making is uncommon.
Despite their large number, a small fraction is registered, active, and commercially oriented, thus contributing
to a low access to input and output markets.
8. Angola has an abundance of arable land, freshwater, and diversity of climatic conditions suitable to producing a
variety of agricultural products, but its agriculture potential remains untapped. The main crops include cassava,
maize, beans, potatoes, sweet potatoes, soy, and bananas, with other agricultural products being livestock,
coffee, manioc, rice, vegetables, and fruits. Agricultural land accounts for 57 million ha – 45.6 percent of total
land – and the arable area is estimated to be 35 million ha. Both crop and livestock production have significant
potential given that only 16 percent of arable area is cultivated and about nearly half of it is unused. There is
also large untapped irrigation potential as only 3.5 percent of irrigable land has been developed.
9. Agriculture is the largest source of jobs and livelihoods, but agricultural incomes remain low. The agriculture and
fisheries sector provides the main source of income to 90 percent of the 10.7 million Angolans living in rural
areas and employs 45 percent of the workforce. Further, more than half of Angola’s poor are in rural areas and
depend almost exclusively on agriculture for their livelihood. However, agricultural labor productivity, measured
in terms of value added per worker, is just US$1,216 (compared to a global average of US$20,916)2, which drives
the low returns to labor in farming. Among economic sectors, agriculture offers the lowest median income at
around 8,000 kz3 per month and is even lower for women (~6,000 kz per month). Additionally, the concentration
of low-skilled labor contributes to low incomes, with approximately 77 percent of the labor in the agriculture
1 The agriculture sector policy review 2021 finds that the macroeconomic policies led to increased prices for domestic agricultural produce leading to significant food
inflation. It also notes the low effectiveness of subsidies, prioritization of few staple crops, and policies discouraging private sector investment in agriculture.
2 World Bank, Food System Dashboard.
3
1USD = 600KZ (October 06, 2021).
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
sector having less than primary education. Under its strategic objective of “Increasing the contribu tion of the
agrarian sector to economic growth and social development�? in the medium -term sector development plan,
MINAGRIP has targeted raising the per capita income of agricultural households from US$1.2 per day to more
than US$2.2 per day. Given the rural population’s heavy reliance on the sector, increasing both agricultural
production and productivity is critical for improving livelihoods for the rural poor. Further, when accompanied
with complementary investments improving market connectivity, productivity gains will contribute to food and
nutrition security, poverty reduction, and ultimately help to diversify the economy.
10. Agriculture in Angola has long been affected by extreme climate events with considerable adverse impact on
key development indicators. Floods have made up 57.5% of average annual hazards occurring in Angola, and
droughts have made up 12%. However, droughts tend to have far reaching impacts. The country is currently
facing the most severe drought of the last 40 years with 6million not having enough food and 15 million people
are using crisis or emergency livelihood-base coping strategies, such as spending savings or reducing non-food
expenses.4 In 2019, a severe drought in the southern part of Angola resulted in food and nutrition insecurity for
2.3 million people, including close to half a million children under the age of five, due to impacts of crop yields
and livestock loss. The climate shocks led to the increase in the cost of basic commodities – such as maize and
maize flour, beans, and sugar – by 25 percent. More than 877,199 livestock (35 percent of the total) died, a
severe shock with both immediate and long-term impacts on rural households’ livelihoods. Furthermore, the
movement of people in search of water for human and animal consumption as well as greener pasture for their
cattle contributed to an increased number of school dropouts. More specifically, 614 out of 887 primary schools
in the Cunene province are affected by drought, leaving approximately 150,000 children without access to
education — almost 70 percent of the total students in the province (Provincial Education Directorate). Previous
droughts had similar devastating impacts.
11. The area affected by drought is characterized by pastoral and agropastoral systems which are vulnerable to
climate shocks. Initial information indicates that households and communities in the three southern provinces
have suffered substantial losses of their livestock assets. It is estimated that over 2 million people are also in a
situation of food and nutrition insecurity (FAO_YEAR). With regards to agriculture-based farm households
(livestock included), the response will need to involve both short-term measures (improved animal nutrition;
provision of water; provision of seeds and fertilizers, ensuring animal feed supply; restocking; veterinary
services) and a transition to medium-term structural interventions to increase the resilience of affected
communities (sensitization and establishment of agropastoral associations, small-scale and climate responsive
irrigation, pastoral landscape restoration including water points and storages, sustainable feed supplies,
veterinary services, restocking, and preparedness for future shocks).
12. Climate change will exacerbate the vulnerabilities of agro-pastoral systems through increased exposure to
extreme event like droughts. Angola is 160th on the ND-GAIN country index rank, denoting a high vulnerability
and low readiness to deal with the impacts of climate change. Yet, climate change is projected to impose severe
stresses on the country, especially the agriculture sector. Projections show that average temperatures in Angola
could increase by up to 3.2°C by 2060. While precipitation projections are more uncertain, rainfall will likely
decrease, with the southern regions experiencing the steepest decline. Climate change is projected to lead to a
4Amnesty International – Press Release June 2021. Available at: https://www.amnesty.org/en/latest/press-release/2021/07/angola-millions-facing-hunger-as-
thousands-flee-their-homes-as-drought-ravages-the-south-of-angola/
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
decrease in productivity. For instance, bean yields could decrease by up to 60%, Under a changing climate, there
is a greater probability of extreme events, with a particular increase in heat waves, droughts and intense rainfall
events. Frequency and intensity of flooding in Angola is projected to increase, especially along the coastal zone.
Drought incidence, which is mainly concentrated in the southern regions, will likely expand to the central and
eastern regions, increasing the number people living in drought prone areas from 30.8 percent of the population
presently to more than half of the country’s population. Those directly impacted by drought conditions annually
will increase to 13 percent of the population, up from 7.5 percent by the 2050s. Average crop production loss
due to drought is estimated to range from 3.7% to 30% across common crops (cassava, maize, groundnut, millet,
sorghum, potato, banana, etc.) between 2051 and 2100. The dynamics between drought, increased population
pressure and increased agricultural development of lands will combine lead to a decline in quality and quantity
of soils, especially along major rivers catchments. The number of affected livestock will reach up to 68% of total
livestock populations, with major losses mostly in the southern regions. The livelihoods and incomes of
smallholder crop and livestock farmers in the marginal areas will be the ultimate victim of climatic changes. The
direct economic impacts to agriculture could rise seven-fold, considerably affecting the agriculture sector’s
potential contribution to the country’s economic growth and poverty reduction.
Figure 1. Estimated drought impacts in terms of annual Direct Agricultural Loss (left), and annual average number of
potentially affected livestock units (right), now and in the future.
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
Source: International Centre on Environmental Monitoring, CIMA, and United Nations for Disaster Risk Reduction, UNDRR,
20195.
13. Agriculture and land-use change are important contributors to environmental damage, including towards
growing GHG emissions in the country. Although Angola is a low emitter of greenhouse gases, at a global scale
(less than 1 percent), the country has experienced exponential increase in GHG emissions over the past few
decades. Emission increase has been largely driven by the energy sector. However, emissions from land-use
change and forestry, and agriculture are estimated at 37 percent and 12 percent respectively, a meaningful
contribution. Direct GHG emissions from agriculture largely emanate from livestock systems and crop residue
burning. Furthermore, burning to clear land for farming has been a key driver of deforestation, and GHG
emissions. Unabated, the trend of increasing GHG emissions in the terrestrial systems is projected to continue.
Yet, if well managed, the agriculture sector could also act as an important sequester of carbon in soils.
14. The sector is also vulnerable from non-climate shocks, such as the COVID-19 pandemic, which have further
exacerbated the economic and social situation. Since the beginning of the outbreak, several restrictive measures
were put in place, including social distancing and closure of borders, which has further exacerbated the
economic and social situation, and has worsened the food security crisis in the country. While the number of
people infected has been low compared to other countries in the region, several negative impacts are reported
country-wide, including business closures, shortages of supply of food items, price increases of agricultural
inputs, and loss of income for many households, among others. The pandemic has thrown into stark contrast
the inequalities inherent in the country’s food systems. The several months of stringent restrictive measures in
Angola, with massive disruptions in labor markets and loss of incomes, has aggravated the food security
situation, especially for the poor and vulnerable, such as in the southern provinces already affected by the
drought. It is estimated that 5.1 million could become food insecure – in addition to the 2.3 million prior to the
pandemic – if appropriate measures are not put in place.
15. Angola’s agriculture sector will need to transform to meet the needs of its people (especially vulnerable
farmers), the economy and the environment. To achieve this, efforts are needed to re-orient the agriculture
sector in such a way that boosts production and productivity, addresses the threat posed by climate change, and
opens opportunities for farmers to boost their incomes. All these will need to be done sustainably, minimizing
5
CIMA, UNDRR (2019) Angola Disaster Risk Profile, International Centre on Environmental Monitoring (CIMA) Research Foundation and
United Nations for Disaster Risk Reduction (UNDRR), Nairobi.
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
harm to the land, environment, and biodiversity, and taking advantage of opportunities to increase efficiencies
in the sector that can bring important environmental benefits and mitigation opportunities.
Relationship to CPF
16. The proposed project is expected to contribute to the Government’s economic diversification agenda and
inclusive growth model by promoting a sustainable transformation of agriculture from subsistence farming to
commercial farming. It will support the transition from subsistence to more market oriented competitive
agriculture, while also improving food security, reducing the dependency on food imports, fighting the impact
of, and building resilience of agricultural systems to climate change, reducing agriculture’s environmental
footprint, improving the well-being of the rural families, and promoting Angola’s national agro -industry. This
approach is outlined in the Government’s National Development Plan (NDP)6, which sets out the medium-term
development objectives for Angola between 2018 and 2025. More specific to climate risk, the NDP and the
Nationally Determined Contributions (NDCs) explicitly mention the need to prioritize addressing the impact of
climate change through adaptation and mitigation efforts under the area of environmental sustainability. They
recognize that the country has been significantly impacted by extreme climate events, particularly droughts and
flooding.7
17. The project is also closely aligned with national and regional priorities for agricultural development. By
supporting the development of commercial agriculture, the project aligns with Angola’s updated Medium�?Term
Agriculture Sector Development Plan (PDMPSA) (2018–2022) which seeks to improve food security, reduce the
trade deficit in agro�?livestock products, and contribute to economic and social development. Accordingly, the
project provides technical support and access to capital, investments in critical infrastructure, and a better
enabling environment. The project will also help strengthen MINAGRIP’s capacity to boost private investment in
food systems, contributing to the PDMPSA’s pillar to make MINAGRIP a more relevant and competent institution.
18. The project is aligned with the World Bank’s Country Partnership Strategy (CPS) for Angola for the period of
2014-2016, extended to 2020. The revitalization of the rural economy and development of the agriculture sector
through productivity increases and market links are important sources of growth, employment creation, and
poverty reduction. Greater dynamism in the rural economy is expected to have far�?reaching effects on achieving
shared prosperity. The Performance and Learning Review (PLR) extended the CPS and reformulated its objectives
to respond to macroeconomic challenges emerging from the decline in oil prices, with economic diversification
remaining a key objective.
19. This project will build synergies with and draw on the experiences of other World Bank Group projects. These
include the Smallholder Agriculture Development & Commercialization Project (SADCP/P154447, also known as
MOSAP2), the Commercial Agriculture Development Project (CADP/P159052, also known as PDAC), and the
Climate Resilience and Water Security in Angola (P177004). Other World Bank operations can also provide
6
The six government priorities of the NDP are: (i) human development and welfare; (ii) sustainable, diversified, and inclusive economic development, (iii) infrastructure
development, including water supply and sanitation; (iv) peace consolidation, strengthening democracy, good governance, decentralization and state reform; (v)
harmonious territorial development; and (vi) ensuring Angola’s stability and territorial integrity and strengthening Angola’s role regionally and internationally.
7 The GoA has developed a National Strategy for Climate Change (ENAC 2018-2030) to fight the impact of climate change and they remain committed to the Paris Accords,
SDGs, and the African Agenda 2063.
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
important guidance on viable approaches to key activities considered under this project, as does the experience
of the World Bank’s productive alliance investments in Latin America. Further, close coordination between other
development partners, the International Finance Corporation (IFC), the and the World Bank can play an
important role in mobilizing investment and sector financing.
C. Proposed Development Objective(s)
20. The proposed Project Development Objective (PDO) is to increase productivity and climate resilience of and to
promote commercialization for smallholder farmers in the selected project areas.
Key Results
21. The proposed outcome indicators to measure achievement of the PDO are as follows:
(i) Farmers adopting improved and climate smart agriculture and livestock technologies (number).
(ii) Farmers benefitting from improved market information systems (number).
(iii) Increase in yield per hectare, selected indicative crops (disaggregated by gender).
(iv) Increase in productivity of livestock species, indicative targeted production systems (weight in kilogram,
liters of milk per animal per day, number of eggs per chicken per day).
(v) Increase in sales volume of agriculture and livestock products by targeted smallholders (average %
increase in sales).
(vi) Direct project beneficiaries (gender-disaggregated number).
A detailed monitoring and results framework with indicators will be developed during project preparation.
Project Beneficiaries
22. The primary project beneficiaries are expected to be about 600,000 smallholder farmers in the project areas of
which at least 50 percent will be women. Smallholder farmers are defined as those who are engaged in single or
mixed farming systems involving crop, livestock, pastoral, and aquaculture production. In addition, the project
will strengthen capacity of staff in the national and provincial institutions working on agriculture and livestock,
as well as of the private sector and NGOs in the sector.
Geographic Coverage
23. The project area is expected to cover all 18 provinces of Angola. The project, however, will adopt a spatial
approach by component. While Component 1 (FFSs) will reach the country’s 18 provinces, component 2 will
reach nine Provinces, including those of Bié, Huambo, Malanje, Cuanza Norte, Cuanza Sul, Huíla, Cunene,
Namibe and Cuando Cubango. The population census of 2014 estimates that the 18 provinces have a total
population of 32.9 million, and the 9 provinces identified for component 2 have a total population of 11.3 million,
representing about 42 percent of the total population of Angola. The main criteria for selection of the nine
provinces are: (i) areas severely affected by the drought and food insecurity, and under threat from climate
change; (ii) achievements under MOSAP 1 and MOSAP 2; (iii) complementarities with PDAC and CRWS – as well
as with other agricultural projects support by the GoA and development partners; (iv) agricultural and livestock
potential of provinces; and, (v) availability of government extension officers (minimum of three extension
officers per municipality).
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
D. Concept Description
24. The Angola Agricultural Transformation Project (MOSAP3) will build-up on ongoing Bank-financed projects,
namely the Smallholder Agriculture Development and Commercialization Project8 (MOSAP 2). MOSAP 2 was
designed to increase agricultural production through the provision of improved agricultural services and
investment support to smallholder farmers. Activities implemented included: (i) training of over 150,000
smallholder farmers in the use of improved agricultural technologies to increase crop production through
Farmers’ Field Schools (FFSs); (ii) the training of more than 100 agricultural MINAGRIP technicians; (iii) providing
investment support to over 50,000 smallholders through sub-projects; and (iv) building the capacity of
MINAGRIP staff in targeted provinces and municipalities. In addition to capacity building, MOSAP 2 also
contributed to: (a) an increase in agricultural production; and (b) the adoption of improved technologies for
maize, beans, cassava, and Irish potatoes in the project areas.
25. MOSAP 2 implementation is progressing well and is likely to achieve the project development objectives. To
date, the project has reached 165,328 smallholder farmers corresponding to 94 percent of its target, of which
about 48 percent of beneficiaries are female. Major achievements to date include: (i) average crop yield increase
by at least 60 percent of beans, cabbage, cassava, Irish potatoes, and maize compared to the baseline; (ii)
considerable increased in the volume of production of maize and cassava by 122,412 tons and 752,822 tons
respectively, compared to the baseline; and (iii) increased proportion of production sold by the smallholder
farmers from 17 percent to 51 percent. The project has also been successful in introducing new technologies,
i.e. new maize and cassava varieties, new planting technologies, construction of small sheds (galpões) for
processing and storage to reduce post-harvesting losses. The project also, contributed to pilot small-scale
irrigation in 700 hectares expected to reach 1,700 hectares by the closing date.
26. MOSAP 3 will also scale up the geographic scope of MOSAP 2 from three provinces to a national coverage.
Building on the lessons learned from MOSAP 2, the project strongly emphasizes capacity building, institutional
development, investment support to smallholder farmers and sustainability by strengthening MINAGRIP’s
capacity for extension services, and market information. Also building on lessons learned, MOSAP 3 will
mainstream nutrition and food security considerations as well as climate-smart agriculture (CSA) practices into
the project design through investments in nutrition activities and the more efficient use of water resources,
promotion of soil conservation techniques, and integrated natural resource management.
27. The overall cost of the proposed Project is estimated at US$ 415 million, of which US$ 300 million IBRD and US$
115 million non-WBG financing (French Development Agency). The Government of Angola has requested the
Bank support for the development of smallholder agriculture and its climate-related risks by scaling-up the
successes of MOSAP 1 and 2 and complimenting it with PDAC. The proposed key interventions include technical
assistance and investments that aim at enhancing agricultural productivity and commercialization, and at
strengthening climate resilience in the south and central regions of Angola, thus contributing to food and
nutrition security in the medium term.
28. The proposed MOSAP 3 will build on the successes of MOSAP 1 and MOSAP 2 and will aim at expanding
technical and institutional agricultural capacity to improve climate resilience and food and nutrition security in
8
Approved in June 2016 and scheduled to close in December 2022.
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
Angola. The propose The project will also complement interventions implemented under PDAC that aims at
increasing productivity and market access for small and medium farm and agribusiness enterprises, as well as
the Climate Resilience and Water Security (CRWS) in Angola, which is under preparation with the objective of
improving WASH services and water resources development and strengthening the institutional capacity for
climate resilience in the water sector.
Table 1: Synergies with World Bank Projects
MOSAP3 MOSAP2 PDAC CRWS
600,000
500,000 people
smallholder
benefiting from
farmers (50% 175,000 smallholder
Project 11,500 farmers and measures aimed at
Women), farmers, 600
Beneficiaries agribusiness SMEs. alleviating drought
Government government officials.
impact on water
staff, and
availability.
NGOs.
Corridor (A): Luanda –
Benguela, Cuanza Sul,
Bengo – Malanje –
Huila, Namibe Cunene,
Cuanza Norte.
Geographic Cuando Cubango and
National Bié, Huambo, Malanje. Corridor (B): Luanda –
Coverage Zaire.
Bengo – Huambo – Bié –
(Talk of expansion to
Cuanza Sul – North of
Huambo, Bié).
Huila.
Supporting farmers Support WSS services
through productive through a combination
Strengthening technical,
alliances to reach new of TA, designs,
institutional, managerial,
markets and establish investments for: i)
and marketing skills of i)
commercial relationships; Rehabilitation and
farmers and farmers’
Strengthening business Expansion of WSS in
organizations; ii)
practices and VC medium-size cities; ii)
different units of the
development through strengthening rural
Ministry of Agriculture;
public-private dialogue to water supply systems
and agriculture research
benefit agribusiness to build drought
systems.
SMEs, including Partial resilience in the South
Technical Areas of Operation Credit Guarantees. of Angola
Strengthening selected
Improving agricultural institutions with
Investing in public goods
productivity, production, technical assistance
such as agricultural
and market access and key studies (i.e.
service roads, irrigation
through demand-base groundwater, storage,
infrastructure.
matching grants. drought contingency
Providing of technical plans, and basin plans)
assistance for irrigation, Addressing regulatory and will support an
production, and value constraints in public extensive community-
chains investments. support to enable level infrastructure
agribusiness, including program to increase
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
public research and reliable access to water
development. resources to improve
climate resilience and
water security in the
region.
Build on the knowledge Finance WASH
175,000 beneficiaries
and experience with the investments for
from MOSAP2 will
productive alliance communities, agro-
become beneficiaries of
approach, which can lead entrepreneurs, food
MOSAP3’s component 2
to increases in processing facilities,
(designed for investment
productivity, market food markets in
support to smallholder
integration, and income Provinces not reached
farmers).
of smallholder farmers. by CWRS.
Build on successes
MOSAP3 beneficiaries
Complementarities of delivered by Farmers
can be linked and benefit
MOSAP3 Field Schools to adopt
from PDAC’s Matching-
improved agricultural
Grants which will finance
practices and
approved business plans.
technology.
Address new
geographical areas
New geographical areas
affected by climate
to support public
change (flood in the
irrigation projects.
North and drought in the
South).
29. MOSAP 3 is designed to address three critical constraints to agricultural development in Angola. First, it is
designed to increase agricultural institutional capacity through training programs, both nationally and in the
project areas. Second, it is designed to sustainably increase production and productivity, including through,
access to improved production technologies, extension services, irrigation, and productivity enhancing inputs
(improved seeds, fertilizers, etc.), and management practices. Third, it will address critical bottlenecks along the
agri-food value chain particularly for post-harvest value addition, and market linkages. Agriculture is essential to
promote national development and economic diversification and its potential will remain untapped if
productivity does not increase significantly, if climate resilience is not strengthened, and if market incentives
aren’t aligned. Although agriculture output has increased in the past few years, crop yields remain very low
compared to other countries in the region. Substantial scope exists for increasing crop yields and production
through sustainable intensification via the use of improved climate smart agriculture (CSA) technologies and
practices, and management. This will require supporting farmers in the adoption of such CSA practices and
technologies, modern agricultural inputs, undertaking participatory development, and very critically, increasing
the area under irrigation among other interventions.
30. Key lessons and recommendations. The key lessons from MOSAP 1 and 2 and PDAC include: (i) The Farmers’
Field School approach to agricultural extension was very effective in enhancing smallholder farmers’ capacity to
generate and use new knowledge and adopt improved agricultural practices and technology; (ii) Provision of
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
investment support to farmers through demand-driven subprojects – MOSAP3 investments, however, will also
be driven by market demands, thus financing sub-projects that have identified a buyer (following the productive
alliance model utilized under the PDAC project); (iii) Availability of extension officers in the new areas is key for
successful implementation of capacity building activities; and (iv) Key project staff need to be involved in the
project design from the outset to ensure successful implementation after project approval.
31. The role of other development partners. The Project will coordinate with the GoA and other development
partners to improve the overall effectiveness of the investments, reduce costs, and avoid unnecessary
duplication of work. The figure below illustrates ongoing agriculture projects in Angola.
Figure 2. List of Agriculture Projects in Angola
Source: GEPE / MINAGRIP, 2021 (WB project team’s mapping).
Proposed Project Components
32. To achieve its PDO and in line with the sectoral needs, the proposed project will be structured as follows
(components):
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
33. Component 1: Capacity Building and Institutional Development (US$ 115 million, of which US$ 100 million IBRD
and US$ 15 million AFD): The objective of this component is to strengthen institutions involved in the
development of smallholder agriculture, including smallholder farmers’ organizations (including women’s
organizations), cooperatives, non-governmental organizations (NGOs), government agencies, service providers
(such as extension services), and private sector. It is expected that a total of 425,000 smallholder farmers will
benefit from this component.
a. Strengthening Capacity of Smallholder Farmers (US$XX million): The objective of this subcomponent is to
strengthen the technical, institutional, managerial, and marketing skills of direct beneficiaries through
the Farmer Field School (FFS) approach – which builds on the successful experience of MOSAP 1 and 29
[with MOSAP2 having benefitted a total of 150,126 beneficiaries, of which 72,774 women]. Through the
FFS approach, this subcomponent will finance: (a) organization of farmers into producer groups,
cooperatives, and associations to facilitate participatory development of and improved farmers access to
knowledge, and technologies, improve access to markets and improve their bargaining positions in input
and output markets through aggregations; (b) strengthening farmers’ knowledge and skills in areas of
productivity, climate and nutrition responsive farming practices and technologies, marketing strategies
and skills, agricultural finance and risk management products, post-harvest management and value
addition, value chains, nutrition awareness and practices, and gender responsiveness in farming systems;
(c) strengthening farmers’ functional literacy and numeracy skills ,as well as the capacity of vulnerable
households to adopt nutritious food production through kitchen-gardens (no-land production
technologies, small community water storages for irrigation, water harvesting, irrigation technologies,
wells, etc.) and small-scale household processing infrastructure (food preservation, processing, drying,
storing – solar/wind based); (d) develop and strengthen existing communication, information, and
support channels to help vulnerable people to access food or food markets in case of emergencies and
outbreaks; and (e) promote measures to counter misinformation and promote dissemination of correct
information on covid related measures.
b. Institutional Capacity Strengthening of Local, Provincial and National Units of MINAGRIP and Capacity
Building of Non-Governmental Organizations (US$XX million): The objective of this subcomponent is to
strengthen the institutional capacity of MINAGRIP at the national and decentralized levels to provide the
complementary services needed for the investments implemented under the project. This
subcomponent will finance technical assistance in the areas of (a) collection and dissemination of data
on crop and livestock production, prices, and market information – also adapted to agropastoral
communities; (b) promote coordination and partnerships between MINAGRIP and other relevant
agencies/institutions (e.g. climate and hydrological agencies, and civil protection), and strengthen
MINAGRIP skills to support/develop targeted agro-climate information services, pest/disease monitoring
and response systems, improved crop and pasture managements practices, and soil health monitoring;
(c) technical assistance to MINAGRIP to develop smart subsidy programs (i.e. input voucher system,
climate smart market-friendly smallholder support programs (for instance to support diversification from
maize and beans to other marketable nutritious and climate resilient crops, adoption of climate smart
technologies and practices, public goods that promote development of effective early warning and agro-
9
With MOSAP2 having established 4,417 FFSs in the Provinces of Huambo, Bié, and Malanje, benefitting a total of 150,126 beneficiaries, of which 72,774 women.
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
climatic information services); and, (d) technical assistance and capacity building activities on agriculture
practices to non-governmental organizations (NGOs) involved in relevant activities supporting the
development of smallholder agriculture – i.e. activities under subcomponent 1.a.
34. Component 2: Agricultural Resilience, Intensification and Market Linkages (US$ 270 million, of which US$ 185
million IBRD and US$ 85 million AFD): The objective of this component is to provide investment support to
eligible beneficiaries in driving their rehabilitation and/or development of new micro and/or small-scale
irrigation systems, sustainable and climate resilient crop and livestock production through improved access to
climate smart technologies and irrigation technologies, services, and infrastructure. This component is expected
to benefit 400,000 smallholder farmers (50% women), including 225,000 beneficiaries supported under
component 1 (exact number of beneficiaries to be discussed during project preparation and following the
selection criteria specified in paragraph 23) as well as 175,000 direct beneficiaries who graduated from MOSAP2.
a. Irrigation Infrastructure, WASH Investments, and Technical Assistance (US$ XX million): The objective of
this subcomponent is to improve access to agricultural water for irrigation and livestock needs through
investments in irrigation and water harvesting infrastructure and technologies that are climate
responsive, affordable (including operation and maintenance (MOM)) to smallholder farmers or
cooperatives and also in alignment with other core elements of building back greener and better concept
as well as strengthening institutional capacities for improved and sustainable water management. This
subcomponent will finance (Matching-Grants): (i) eligible investments in modernization of existing and in
development of new irrigation and storage infrastructure for producer groups. Estimates of new and
rehabilitates areas will be defined during preparation; (ii) technical assistance to support formation and
strengthening of Water Users Associations (WUAs) for adoption of improved and climate responsive
water management practices such as soil and water conservation techniques and O&M; (iii) WASH
investments for agro-entrepreneurs, food processing facilities, and food markets by supporting access to
reliable sources of quality water; and, (iv) community/household multi-purpose self-supply which
includes climate responsive technologies (solar/wind power technologies to support water supply for
irrigation (e.g. kitchen gardens), domestic and livestock purposes (e.g. irrigated fodder) and water
efficient irrigation), sanitation, and hygiene infrastructure, as well as behavior change messaging around
open defecation, hand washing, etc. – only in those areas which are not covered under the new CRWS
project.
b. Agriculture Production and Market Development (US$ XX million): The objective of this subcomponent is
to increase farm productivity, resilience to climate change and extreme climate events, and
competitiveness to facilitate transition to commercial farming. Following the MOSAP2 model, this
subcomponent will finance technical assistance and investment support, including the identification of
market-driven sub-projects at the level of farmer groups for increasing agricultural production and
improving access to storage capacity, post-harvest, value addition, processing, and marketing
infrastructures. The subcomponent will also support the development of commercial partnerships
between off-takers and project beneficiaries (those that have achieved certain level of organization).
Other activities to be supported under this subcomponent includes agriculture vouchers (pilot voucher
system) and Matching-Grants [define a very clear criteria on what MGs will support, i.e. climate-smart
technologies, marketing, post-harvest practices, skills for business plans’ preparation, etc.] for eligible
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
farmers to allow access to improved productivity enabling and climate smart technologies, farm
machinery and tools. These would include investments in but not be limited to access to improved and
climate adapted seeds (drought and water-stress tolerant, short season, etc.) and climate resilient crops,
nutrition smart agriculture practices (especially hardy crops like sorghum and millet, legumes, root tubers
and vegetables), other farm inputs, sustainable soil management and soil health enhancing technologies
(such as crop-rotation/intercropping, integrated soil fertility management, and crop residue
management), small scale farm machinery (power tillers, seeders, tractors, threshers, micro-irrigation
technologies). This model will enable market access to agricultural inputs and services and improve the
capacity of suppliers to plan and deliver quality inputs and services based on voucher system, increased
productivity, enhanced resilience of cropping systems and increased potential for cropland to build
mitigation Co-Benefits.
c. Livestock Production and Market Development (US$ XX million): The objective of this subcomponent is
to increase livestock productivity, strengthen synergies and integration with crop farming to support
diversification, build resilience to climate change and extreme climate events and increase the share of
production that is marketable by the beneficiaries, especially the agropastoralists, thereby supporting
the transition from subsistence to commercial livestock. Following the same MOSAP2 model, this
subcomponent will finance technical assistance and investment support, including the identification of
market-driven sub-projects for increasing livestock production, integration, and synergy with crop
farming (e.g. through manure management), storage capacity, value addition, processing/marketing
infrastructure, the rehabilitation of selected critical public facilities – i.e. zootechnical stations10 and
breeding centers at local levels. The subcomponent will also support the development of commercial
partnerships between off-takers and project beneficiaries (those that have achieved certain level of
organization). Other activities to be supported under this subcomponent includes small grants and
Matching-Grants for eligible farmers to allow access to improved livestock breeds, improved rangeland
management technologies, water and animal feed supply, provision of veterinary services and products,
restocking, managed grazing, and other responses to increase the resilience of beneficiaries to climate-
related shocks and reduce livestock sector contribution to environmental damage and GHG emissions,
such as improved manure management.
35. Component 3: Project Management and Monitoring and Evaluation (M&E) (US$ 30 million, of which US$ 15
million IBRD and US$ 15 million AFD): The objectives of this component are to (i) ensure an efficient project
management, which will include efficient and targeted use of project resources in accordance with the project’s
objectives, procedures, and fiduciary guidelines and efficient contract management among others; and (ii)
building the project M&E system capable to inform about the project progress and achievements, support
management decision making and course correction with timely and quality data and reporting.
36. Component 4: Contingent Emergency Response Component (CERC) (US$ 0 million): This component will provide
immediate response to eligible emergencies. As such, in the event of such an eligible emergency, as defined in
10Zootechnical stations will be financed to provide seeds of forage and animal feed in crisis periods and to disseminate technologies of pasture
improvement and management. A selection criterion for eligible facilities needs to be defined and agreed with the World Bank. These would include
government commitments to allocate specific resources for operations and maintenance. The potential beneficiary institutions include: Institute of
Veterinary Services (IVS), Veterinary Research Services (VRS), and Agriculture Research Institute (IIA).
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
the Contingency Emergency Response (CER) operational manual prepared and adopted by the GoA, this
component would finance emergency activities and expenditures through the reallocation of funds from the
Project.
37. Gender. The project will support women’s employment and decision-making throughout the activities
contemplated under Component 1 and 2. The objective is to guarantee the gender mainstreaming and that fifty
percent of the beneficiaries will be women, in a context in which women are 52% of the population of Angola
and the main workforce in the agriculture. More than half (55.6%) of the population is employed in the
agriculture, animal production, hunting, forestry, and fishing sectors, followed by the trade sector (19.4%).
Women are more represented in the Agriculture, Forestry and Fisheries sector (47%). Women in Angola also
play a key role in keeping the food system functional. Another relevant aspect is women's access to land, which,
for cultural reasons, sometimes encounter barriers. The project will prepare a Gender Gap Analysis and a
proposed Action Plan to close these gaps, in relation to each of the project components: capacity development;
access to technologies and infrastructure, transition to commercial farming and others to ensure that the project
will be gender-tagged.
38. Gender-based violence (GBV). The Project will be screened for GBV risks. Awareness raising and sensitization efforts
will be included in the design of investments as part of the social outreach program and technical assistance.
39. Citizen Engagement. Stakeholder engagement will be carried out throughout implementation to mitigate the
risk of misperceptions about project impacts and benefits. Expected meetings to be take place during
preparation will inform the development of a Stakeholder Engagement Plan, identifying affected and other
interested parties and vulnerable groups. The plan will include a schedule of engagement actions, including
sharing of project information and stakeholder participation, and description of a Project-level GRM. The latter
will be used to keep communication lines with residents open throughout implementation, resolve issues and
complaints, and answer citizens’ questions and concerns.
40. Citizen engagement through the project will also go beyond grievance mechanisms. The project will put in place
mechanisms for stakeholder’s involvement at all stages of project design and implementation to make sure that
it is informed by beneficiaries. Moreover, periodic beneficiary assessment surveys to promote overall
accountability and responsiveness to beneficiaries. Especial attention will be paid to women and people with
disabilities which have less access to basic services.
Legal Operational Policies Triggered?
Projects on International Waterways OP 7.50 TBD
Projects in Disputed Areas OP 7.60 No
Summary of Screening of Environmental and Social Risks and Impacts
.
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Angola Agricultural Transformation Project (MOSAP3) (P177305)
41. The environmental risk is classified as Substantial at this stage considering the activities described below. This is
based on the project’s anticipated civil Works under Component 2, such as, modernization of existing and in
development of new irrigation and storage infrastructure; as well as activities under Component 1 that include
capacity building, technical assistance and small-scale household processing infrastructure. The number of
construction activities in nine provinces under Component 2, in different locations that are not yet known; and
the Borrower’s lack of experience on the implementation of projects under the new ESF requirements is also
considered as being a potential risk. Key environmental concerns are related to potential risks and impacts of
the modernization of existing and in development of new irrigation and storage infrastructure. The proposed
civil works may generate some adverse impacts related to: (i) disposal and management of waste during the
construction phase, (ii) occupational health and safety of workers, (iii) nuisances related to air and noise
emissions, and (iv) community health and safety. Project activities such as improving access to fertilizers;
modernization/rehabilitation of existing irrigation infrastructures and development/construction of new
irrigation infrastructures, have the potential to adversely impact the physical and natural environment. Likely
risks and impacts could include soil erosion and contamination, water use efficiency, increased use of pesticides
and other agrochemicals. These potential risks and impacts shall be managed through the implementation of
cost-effective mitigation measures. Technical assistance activities will be financed by the project under
Component 1 and 2 and will support MINAGRIP to develop smart subsidy programs; capacity building activities
on agriculture practices; formation and strengthening of Water Users Associations (WUAs) for adoption of
improved and climate responsive water management practices such as soil and water conservation techniques
and O&M; investment for increasing agricultural production and improving access to storage capacity, for
increasing livestock production; and the rehabilitation of selected critical public facilities. The proposed TA
activities are classified as type 2 (formulation of programs) and type 3 (borrower capacity building) per OESRC
Advisory Note for TA under ESF. Anticipated environmental risks of the TA activities are expected to be moderate
and easily manageable through the implementation of cost-effective mitigation measures. Hence,
environmental and social objectives shall be included into the TA process.
42. The project’s social risk rating is Substantial at this stage. This is based on the project’s proposed interventions
envisaged under Component 2 (such as, modernization of existing and in development of new irrigation and
storage infrastructure; as well as activities under Component 1 that include capacity building, technical
assistance and small-scale household processing infrastructure), which have the potential to result in significant
social impacts in part due to the social context that characterizes some of the areas where project interventions
will take place (e.g., remote rural communities affected by drought and with high incidence of poverty). Although
the social and economic impacts of the envisaged project interventions are expected to be positive overall, it is
anticipated that there will be substantial social risks relating to the impacts of civil works on communities,
including issues relating to labor and working conditions (e.g., risk of child labor), labor influx, and sexual
exploitation and abuse and sexual harassment (SEA/SH); potential temporary or permanent physical or
economic displacement impacts; potential issues relating to the distribution of project benefits and social
inclusion (including limited participation of women); and interventions in pastoralist and/or Indigenous
Peoples/Sub-Saharan African Historically Underserved Traditional Local (IP/SSAHUTL) communities in southern
Angola, where culturally-appropriate engagement and consultation activities and measures to ensure
appropriate inclusion of such communities as project beneficiaries will be needed. (e.g. prevalence of child labor
in agriculture and construction, enforcement of labor laws, workplace exclusion/discrimination, water
availability, local land use patterns, tenure arrangements and access/competition for arable land). In rural
communities affected by drought in southern Angola, there is limited access to social services such as health
clinics and high incidence of poverty and food insecurity. Ensuring the inclusion of vulnerable groups in the
distribution of project benefits may be one of the project’s main challenges, in part due to the remoteness of
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
many rural communities affected by drought (often characterized by poor road access) and to the limited reach
of the state (and hence of public services) in many of such locations. Furthermore, the IP/SSAHUTL communities
which are present in southern Angola are characterized by additional vulnerability and marginalization in part
due to linguistic and cultural differences and – in some cases – reliance on government services across the
border in Namibia due to the Angolan state’s limited reach.
43. A preliminary sexual exploitation and abuse/sexual harassment (SEA/SH) risk assessment has been conducted,
using the World Bank’s SEA/SH Risk Assessment Screening Tool, and the risk rating is substantial. This is largely
due to the fact that it is envisaged that there will be project interventions involving civil works in rural and remote
areas, where supervision of the project’s labor force is typically more challenging, and as it is anticipated there
will be interventions in areas severely affected by drought and thus characterized by high a degree of
vulnerability. Measures designed to manage potential SEA/SH risks in line with the risk level will be outlined in
the E&S documents that are to be developed for this project (e.g., ESMF, LMP, SEP, and IPPF), and a SEA/SH
Action Plan will be developed during project preparation and implemented by Effectiveness.
.
CONTACT POINT
World Bank
Izabela Leao, Marco Antonio Aguero
Senior Rural Development Specialist
Borrower/Client/Recipient
Ministry of Finance
Implementing Agencies
Ministry of Agriculture and Fisheries
Anderson Jeronimo
Project Director
andjeronimo@gmail.com
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The World Bank
Angola Agricultural Transformation Project (MOSAP3) (P177305)
FOR MORE INFORMATION CONTACT
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 473-1000
Web: http://www.worldbank.org/projects
APPROVAL
Task Team Leader(s): Izabela Leao, Marco Antonio Aguero
Approved By
APPROVALTBL
Practice Manager/Manager:
Country Director: Jean-Christophe Carret 09-Dec-2021
Oct 27, 2021 Page 21 of 21