Israeli infrastructure group Tahal expects to make revenues of $370m over the next seven years by selling agricultural products from a vast collective farm it has built in Angola.
Tahal and a local state-owned partner will manage 300 private farms of 10 acres each, raising grain, vegetables, fruit and livestock, paying a franchise to the Angolan government, according to an agreement signed this month, the company said.
The seven-year operation concession came after Tahal finished a $207m contract with Angola’s agriculture ministry to build houses, roads, chicken coops, and waste, water and power infrastructure at the 5,000-hectare site in the Quiminha region 70km east of the capital Luanda.
The project reproduces the model of the Israeli moshav, or cooperative agricultural settlement, Tahal told Israeli business publication, Globes.
Tahal, a subsidiary of Netherlands-based Kardan NV, will be entitled to the entire proceeds arising from the sale of the agricultural products, estimated at an average of $52m annually for the duration of the agreement. Output will reach 60,000 tons of products per year, and will be sold in Angola, Tahal said.
Under its agreement, Tahal Angola must supply all equipment necessary for the operation of the project, employing managerial and professional teams, and to pay a franchise fee to the Angolan government.
Image: Aerial view of the Quiminha farm development in Angola (Tahal)