The president of the Association of Bakery and Pastry Industries of Angola (AAIPA), Gilberto Simão, denounces that wheat imported to serve the national industry is being re-exported to the Democratic Republic of Congo (DRC), which is contributing to the scarcity of the product on the market
Gilberto Simão said that, in fact, what exists is price speculation, as the Executive has made large sums available for the import of raw materials, but it is not being consumed internally. The main problem, according to the person responsible, is in the distribution of the product, as most of the wheat flour is being taken to the DRC, where a 50 kg bag is being sold for the equivalent of 100 USD.
To reverse the current situation, Gilberto Simão argues that the Government should ban the export of wheat flour to benefit national production. If the situation continues, most national bakeries will close. The head of the bakeries also said that, to stabilize the price of wheat flour, it is necessary to invest in national production, as a cooperative of producers was formed in the provinces of Huambo, Bié and Cuanza-Sul. “In 2014 we had an identical situation.
Quantities of wheat flour were imported, there was speculation and the price was managed to stabilize. We have already written to the President of the Republic because we do not want exports. It is necessary to invest in national production”, he explained. He added that Angola can produce wheat flour on a large scale and has already started producing in the province of Huambo, where the Provincial Government has made more than 10 thousand hectares available, while in Bié more than 20 thousand hectares are available.
Impact on the price of bread
For economist Eduardo Manuel, the rise in the price of wheat flour will have a negative impact on the budget of Angolan families, taking into account that purchasing power has been decreasing, which requires the State to review the issue of salaries in public and private companies. “Bread is a product widely consumed by the population and the change in price directly affects families, especially those with an income of less than 30 thousand kwanzas”, he said. Economist Eduardo Manuel also states that the solution to reducing the price of wheat flour involves increasing national production, so that there is a greater supply of the product, because scarcity leads to an increase in price.
“Policies can be established through an agreement with banks, in order to grant credit for wheat cultivation as part of existing economic diversification policies.” In the economist’s opinion, when foreigners come to invest in Angola, they have greater access to financing, because they already come with a guarantee from their partners, unlike nationals, who are required to present a series of documents and endure bureaucracy. Within the scope of economic diversification programs, special policies must be promoted so that small and medium-sized entrepreneurs can have access to credit with the issuance of a sovereign guarantee.