Angola cuts VAT rate on basic food items as consumers struggle

By our African Marketing Confederation News Team | 2024

Items such as meat, bread, eggs, vegetables, cooking oil and powdered milk now taxed at 5%, rather the standard 14%.

In good news for Angola’s consumers, grocery stores and supermarkets, the country’s government has implemented a cut in VAT on basic foods. The reduction – from 14% to 5% – became effective on Sunday (28 January). 


As in most, if not all, African countries, Angolan consumers have been struggling to afford the skyrocketing cost of goods and have been cutting back on purchases as their income fails to keep pace with inflation. 


According to the website Trading Economics.com, the cost of food in Angola increased by 19.5% percent in November 2023, over the same month in the previous year. “Food inflation in Angola is expected to be 20% by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations,” the website states. 


The cuts affect a range of product categories. Among them are meat, frozen and dried fish, eggs, edible vegetables, beans, fruit, tea, cereals, maize and wheat flour, cooking oil, sugar, bread, pastries and powdered milk. The measure is also aimed at agricultural inputs. 

Photo credit: Hansueli Krapf via Wikimedia Commons


VAT cuts passed on to consumers 


“According to local media, consumers have struggled to ascertain whether the fall in the price of food has happened because the festive season has ended, or due to VAT cuts. Nonetheless, the price cuts have been passed onto consumers and are visible in the market,” the London-based emerging markets consultancy, Trendtype comments. 


It adds that a survey undertaken by the newspaper Jornal de Angola in mid-January found that the Alimenta Angola and Fresmart supermarket chains in Luanda have the lowest prices for the basic basket of 16 essential products. The highest prices were at the Casa dos Frescos chain. 


The country’s Minister of State for Economic Coordination, José de Lima Massano, announced in July last year that VAT would be reduced on certain items due to inflation. 


VAT was implemented in Angola on 1 July 2019, with an initial rate of 14%. 

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.