Improving the competitiveness of the economy

Context

Over 70 per cent of Mozambique's population work in agriculture, almost all of them as smallholders. More than half of the rural population has an income below the poverty line. Almost all enterprises are MSMEs.

It is very difficult for MSMEs and smallholder farms to harness the potential of agriculture, generate sufficient income and create jobs, especially for women and young people. The factors contributing to this include poor economic conditions, lack of access to financial services and the low level of integration into the markets.

Objective

MSMEs and smallholder farms increase their competitiveness and growth, something everyone benefits from. More employment and higher incomes reduce poverty.

Approach

The project has three fields of action:

Partnerships with companies that source agricultural products from MSMEs and smallholder farms promote value chains. The project provides training, enhances skills and develops digital solutions for registering smallholder farms and managing market processes. This improves both the income situation and resilience to climate change.

Innovative financial products and enhanced bankability facilitate access to financial services. One focus is on measures that are tailored to the needs of women and young people. Savings products, insurance and connection to the formal financial system increase the ability to adapt to external influences.

The project improves the economic ecosystem with a view to mainstreaming the measures in the long term. To this end, it offers local support for smallholder farms and MSMEs and develops regional networks and support structures. They include a public-private platform for coordinating agricultural finance (CIFAM) under the leadership of the Ministry of Agriculture.

Last update: December 2023