ANGOLA – Angola Bioenergy Company (Biocom), a leading player in the production of sugar, ethanol, and electricity from sugarcane biomass, is gearing up to boost its performance, with plans to cover 60% of Angola’s sugar demand by 2026.
The move comes following a strategic agreement signed in Cacuso, Malanje, between Biocom and the Credit Guarantee Fund (FGC), aimed at facilitating access to financing for raw material producers.
Under the terms of the groundbreaking agreement, the FGC will allocate a portion of its funds, totalling 25 billion kwanzas, to provide guarantees for agricultural production on behalf of micro and small businesses and individual sugarcane producers.
This financial boost will pave the way for a significant ramp-up in sugarcane production, ultimately contributing to the broader value chain, including sugar, ethanol, and biomass electricity production, in line with the Production Support, Export Diversification, and Import Substitution Program (Prodesi).
Additionally, the agreement outlines collaborative efforts between the public fund and Biocom to support companies and individual entrepreneurs, while establishing service networks to foster community development and enhance living conditions for the local population.
Otília Viegas emphasized the memorandum’s pivotal role in augmenting the availability of raw materials for Biocom.
She noted that the boost in production capacity would enable Biocom to cover a substantial 60% of Angola’s sugar demand, a significant leap from the current 40% coverage.
“This expansion will see Biocom’s sugarcane production acquiring the entirety of the increased output,” she explained.
The company’s ambitious goals are set to align with its production targets for this year, which include 120,000 tons of sugar, 19,000 cubic meters of ethanol, and an impressive 63 megawatts of electricity.
The objectives also reflect the company’s commitment to sustainable growth and its pivotal role in Angola’s agriculture and energy sectors.
This strategic partnership between Biocom and the FGC not only signifies a promising step forward for the Angolan sugar industry but also aligns with the country’s broader economic development objectives.
By boosting domestic production and supporting small-scale producers, Angola aims to reduce its dependence on sugar imports, enhance economic stability, and create opportunities for local entrepreneurs.
In recent years, the majority of Angola’s sugar imports have been supplied by Brazil, with some also from India and South Africa.
According to the BMI report, Angola has sustained as a large producer of sugar in southern Africa, with further production growth ahead as a result of continued efforts by Biocon to supply the domestic market.
However, high levels of risk, particularly legal and investment risk, will deter other investments. As a result, Angola’s sugar deficit will be sustained until 2025.