Mozambique

Overview

In spite of strong recent economic growth and extensive natural resources, Mozambique remains one of the world’s poorest countries.

TechnoServe has been providing technical assistance to agribusinesses in Mozambique with high growth potential since 1998. We have helped create a competitive and sustainable commercial agricultural sector that has generated opportunities for small-scale rural producers and suppliers, and new jobs for the rural poor. Our goal for the next 10 years is to mobilize investment of approximately $500 million in the fruit industry and approximately $9 billion in the forestry industry. These investments -- combined with the growth of other industries including livestock, feed grains, tourism, confectionery nuts and horticulture – have the potential to increase the scale of TechnoServe-supported industries from 7 percent of Mozambique’s gross domestic product (GDP) to approximately 24 percent of GDP by 2025.

Impact

In the past five years, TechnoServe-assisted businesses in Mozambique have generated more than $76 million in revenue, purchased raw material from more than 154,000 smallholder producers and created more than 6,200 jobs.

Stories

New Opportunities Take Root in Mozambique

A TechnoServe-supported agro-forestry program is paving an environmentally and economically sustainable path for rural communities in Mozambique.

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Poultry Promotes Prosperity in Mozambique

TechnoServe works across a value chain to help create and support a thriving domestic poultry industry, transforming the lives of thousands of farmers.

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Revitalizing an Island Gem

TechnoServe helps a historic Mozambican island develop a tourism industry plan to bring much-needed jobs and business opportunities for local residents.

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On The Ground

Projects

 

Soy Value Chains

With support from the Bill & Melinda Gates Foundation, TechnoServe is helping to grow the incomes of tens of thousands of small-scale farmers in southern Africa by promoting the development of the local soy industry.
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Promoting Agro-Forestry Villages

A competitive and environmentally sustainable plantation forestry sector will generate a substantial amount of new employment in rural areas, drive continued expansion of the grain and livestock industries and help to ensure that new investments in the poultry industry are targeted for areas with high potential for low-cost feed grain production in order to promote competitiveness. Supported by the U.S. Department of Agriculture (USDA), the Agro-Forestry Village Project aims to break the cycle of poverty for about 60,000 workers, farmers and their family members. TechnoServe has been instrumental in increasing the number of plantation forestry companies in Mozambique from one to seven, including UPM of Finland, the world´s largest pulp and paper producer. Over the next decade, these companies plan to invest more than $4 billion in the country, plant more than 1 million hectares of pine and eucalyptus trees and employ more than 100,000 workers.

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Mozambique
 

Developing the Banana Industry

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.

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Mozambique
 

Improving the Seed System

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.

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Mozambique
 

Engaging Rural Women through Maize Mills

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.

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Mozambique
 

Growing the Poultry Industry

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.

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Mozambique
 

Promoting Export-Quality Horticulture

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.

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Mozambique
 

Transforming the Cashew Industry

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 Mozambique has gone from exporting no kernel in 2002 to becoming the second largest processor in East and Southern Africa and the eighth-largest processor in the world. The industry now employs more than 5,000 workers and has annual revenues of approximately $25 million. With financial support from USDA, TechnoServe is currently assisting the industry by providing agricultural extension to improve cashew tree productivity, 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. For more information about the Mozambican cashew industry and the MozaCajú project, please visit www.MozaCaju.com.
 

Promoting Rural and Eco-Tourism

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.

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Mozambique
 

Connected Farmer Alliance

The Connected Farmer Alliance (CFA) is a public-private partnership that seeks to promote commercially sustainable mobile agriculture solutions and increase productivity and revenues for 500,000 smallholder farmers across Kenya, Tanzania and Mozambique. The program also aims to increase revenues for agribusinesses and agricultural value chain service providers.
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Promoting Investment and Competitiveness for Agribusinesses

FinAgro is a program funded by USAID and the Government of Mozambique designed to increase the competitiveness of the Mozambican private sector in selected cash crops and value chains. The project focus is on tropical fruits (mangos, bananas and pineapples), pulses (common beans, cowpeas, and pigeon peas), oilseeds (peanuts, soybeans, and sesame), cashew nuts, and other crops as maize, rice, potatoes, and cassava. Through the provision of small grants, the program aims to support and promote partnerships between commercial farmers and smallholder or emerging farmers; increase access to production inputs and equipment in targeted areas; address gender imbalance by encouraging female applicants; Generate new jobs; and increase value and volume of exports. FinAgro grants are designed to leverage additional private capital from investors and financial institutions. The program focuses on supporting Mozambican small and medium size enterprises (SMEs) and farmer associations/cooperatives operating in farming, agro-processing, marketing and exporting activities. The grants are designed to contribute directly and substantially to the competitiveness of selected sub-sectors, enterprise clusters or value chains as opposed to only generating financial benefits to an individual grantee. For more information on FinAgro, please see www.finagro.org.mz.

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Mozambique

Blog Posts

May 8, 2014

Photo of the Week: A Salute to Mothers

In honor of Mother’s Day, TechnoServe recognizes the critical role that mothers play in lifting families out of poverty.

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April 2, 2014

Photo of the Week: Greening Mozambique

An environmentally and economically sustainable agroforestry program is catalyzing rural development in Mozambique.

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October 24, 2013

TechnoServe Featured in Global Agricultural Productivity Report

The Global Harvest Initiative’s new report on food security spotlights TechnoServe’s work with the poultry industry in Mozambique.

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Contact

TechnoServe Mozambique

Av. Zedequias Manganhela No. 267
5 Andar, F6
Prédio Jat
Maputo, Mozambique

Tel: +258 213 26171/73
Fax: +258 213 26166

Jane Grob

Director, Investment Advisory
jgrob@tns.org

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