TechnoServe determined early on that Mozambique had the potential to become a major supplier of tropical fruit to world... markets and in particular to the Middle East. TechnoServe’s market research determined that in order to reach economies of scale in transporting products to international markets, the first point of entry into the fresh fruit market should be bananas. TechnoServe then succeeded in brokering an agreement for commercial farm Matanuska to supply Chiquita Brands. One of the unique aspects of this project was that we assisted Matanuska in obtaining government approvals to build one of the largest dams in the country in order to irrigate northern Mozambique´s first 3,000 hectares of commercial export bananas. We are assisting other investors to further increase banana plantings, since our research indicates Mozambique could cultivate more than 30,000 hectares of bananas within the next 15 years, creating approximately 90,000 jobs.

Within 10 years, the incomes of 200,000 smallholder households in southern Africa will have significantly increased... through the development of a competitive local soy industry. Funded by the Bill & Melinda Gates Foundation, and led by TechnoServe in partnership with private agribusiness partners, CLUSA Mozambique and local farmer organizations, the project aims to provide extension services to small farmers and promote seed production. TechnoServe has designed a scalable value chain intervention with a four-year goal of increasing the annual incomes of 30,000 small-scale farming families in Mozambique and 7,000 families in Zambia by an average of $200. The program supports growth and investment across the value chain and will help develop market connections between producers and the poultry industry.

The Kingdom of the Netherlands and TechnoServe have entered into a three-year grant agreement to support the work of... small commercial farmers and the Government of Mozambique’s ongoing efforts to reduce poverty. This $5-million project will specialize in high-potential crops, beginning with soybean and groundnuts, to improve income and nutrition for three million poor smallholder families that are underserved by the formal seed system. This effort bridges formal and informal seed systems, leading to a more consumer-responsive distribution network based on newly mechanized small-scale entrepreneurs. The project further aims to establish a cohort of small commercial farmers with the competencies and tools to improve the competitiveness of local seed production. Taken together, this partnership has the potential to transform the seed system in Mozambique by generating nutritional outcomes and increases in smallholder farmer income, unlocking the participation of women in decision-making about production and the use of generated income, encouraging substantial private investment and supporting policy development through well-informed regional seed grower associations. This approach embraces people’s innovation and empowers farmers to determine their own strategies as they navigate issues of market access, food security, labor availability and the harvest cycle.

Moageiras Milénio de Moçambique (MMM) is a registered company in Mozambique, headquartered in Nampula Province, with... business operations planned throughout the northern provinces of the country. MMM’s goal is a profitable social franchise of maize mills delivering reliable, affordable milling services and a range of affordable, nutritious foodstuffs. Moreover, since village mills are often centers of community dialogue and activity, there is an untapped opportunity to add value for rural consumers, most of whom are women, through innovative services and products. Franchise mills may select from several pre-designed product and service lines, including poultry feed and extension services, flour production and sales, and operation of a small shop in addition to traditional milling and hulling services. MMM will directly provide nationwide marketing and brand management; extensive business, financial and technical guidance; and continuous product development and distribution from its research and development headquarters in Nampula. It will also work closely with selected franchisees to secure financing and equipment through pre-negotiated relationships with banks and preferred vendors.

In 2006, the U.S. Department of Agriculture awarded TechnoServe a grant under the Food for Progress Program to develop... the country’s poultry industry. Due largely to TechnoServe’s assistance, the Mozambican broiler industry has grown from approximately $20 million in sales in 2005 to more than $120 million in 2011, and increased its market share in relation to Brazilian imports from 25 percent to greater than 75 percent. This has directly impacted the incomes of more than two million Mozambican smallholder farmers, as maize and soy are the key ingredients used for poultry feed. This program offers a methodology that can guide similar interventions outside of Mozambique.

TechnoServe’s Inhambane province program, supported by Irish Aid, is designed to stimulate inclusive growth of the... agricultural economy while enhancing the long-term resilience of the poorest households. Building on the successful outgrower model developed with our private-sector client Mozambique Organicos, the program is growing a network of nucleus and outgrower farmers who are generating income by producing export-quality horticulture crops. We predict that the project will generate $8.6 million in wages and revenues over the next five years, directly benefiting 3,345 men, women and children. While most households in the province currently grow coconuts, few invest in good management of their trees. As aging trees leach nutrients from depleted soils, yields continue to fall, and coconut-related incomes remain low. The program pilots creative models for household and community-level replanting through intercropping with other food crops, which increases productivity and soil fertility. Further, the interplay between the horticulture and coconut elements of the program holistically addresses the agricultural development needs of Inhambane and results in jobs and income, while increasing the availability of nutritious fruits and vegetables.

The cashew processing industry was TechnoServe´s first success story in Mozambique. This transformation had its roots... in a TechnoServe industry study, which showed that a new labor-intensive processing model would create benefits for the rural poor and the national economy. A “model” approach to processing was developed in rural Nampula and between 2002 and 2008, Mozambique went from processing zero cashews to becoming the largest processor in Africa and the fourth-largest processor in the world. The industry now employs more than 5,000 workers, with annual revenues of approximately $25 million. The revitalized cashew industry is bringing cash into rural communities and turning them into commercial centers. Spin-off businesses such as small stores, restaurants and bicycle repair shops are springing up to cater to the expanding demand, creating more job opportunities and reinforcing the cycle of economic growth. TechnoServe is currently supporting the development of local roasting, facilitating links to major international buyers, helping implement greater traceability standards and rethinking the overall approach to how value is best shared and returned to communities.

In 2003, with support from the Ford Foundation, we began identifying opportunities in the tourism sector. Our tourism... industry strategic plan was developed by a pro-bono McKinsey & Company team. They identified eco-tourism as the segment with significant growth potential and where TechnoServe’s expertise could add the most value. More specifically, eco-tourism enables us to have an impact on isolated rural communities, which might not otherwise have access to employment or business opportunities. Our approach is based on working with a cluster of eco-tourism lodges that show that ecotourism, if practiced in a responsible way, can bring benefits to the rural poor. The aim is for these lodges, like the community-owned Covane Lodge in Limpopo National Park, to set high standards of responsible tourism and to demonstrate how tourism can promote rural development. Similarly, we are establishing a model for the restoration, monetization and maintenance of Ilha de Mozambique, a UNESCO World Heritage Site. To achieve this, a community foundation (Fundação Ilha de Moçambique) was established to give religious, cultural and craft groups a say in the future development of the island.