Overview

Despite Mozambique’s recent economic growth and its strategic location in southern Africa, the country still faces challenges in developing its agriculture sector and reducing hunger. The most common is the lack of access to quality inputs and markets. The Mozambican agricultural market has an undeveloped agro-inputs distribution system, with very few agriculture supply shops in rural areas. The few inputs that are commercially available are found in distant urban centers, inaccessible to most farmers.

Program Description

P4I partners with the private sector to commercialize agricultural technologies and services to smallholder farmers. These include mechanized equipment, quality storage facilities, training in good agricultural practices and financial literacy, innovative mobile data systems and technologies, and other value-added services. Because access to finance and banking services are also barriers to smallholder farmers increasing their production, the program works with several microfinance institutions to develop innovative loan products that  reach rural farmers. The program also works with farmers and the private sector to capture and exchange information and best practices in agricultural technology and marketplace development and distribution

Ongoing and Expected Results

In 2016, with funding support from P4I, Banco Oportunidade de Moçambique opened savings accounts for 5,332 farmers, far exceeding its milestone target of 1,500 farmers. The bank also disbursed 476 loans to soybean and sesame farmers. Targeted training in good agricultural practices and financial literacy has resulted in farmers understanding the benefits of savings accounts and other financial products that the bank offers. 28,004 smallholder farmers, 26 percent of whom are women, gained greater access to agricultural inputs and services. In addition, 10,916 farmers have been trained in financial literacy and 746 are receiving credit with loans valued at $111,401. Recognizing the benefits and opportunities of employing women and specifically marketing to women customers, several of FTF-P4I’s partners have incorporated women into their business development strategies. For example, Export Marketing Company Limited has hired 30 women to run its new input shops, offering women the opportunity to increase their incomes while providing greater access to inputs for smallholder farmers. The company intends to hire an additional 16 beyond the partnership goal of 30.