Mozambique – Empowering Private Enterprise in the Development of Agriculture (EMPRENDA)

Working with Farmers in the Beira and Nacala Corridors to Increase Rural Family Incomes

In recent years, Mozambique’s economic growth rate has averaged an encouraging 7 percent. Inflation is at 13.5 percent, down from 54.1 percent in 1995, and crippling debt service payments have been reduced by approximately half under the Heavily Indebted Poor Country (HIPC) Initiative to an average of $56 million. Agriculture remains the heart of the economy, accounting for 80 percent of exports and employing 83 percent of the labor force.

Despite this progress, Mozambican smallholder farmers continue to be some of the poorest people on Earth, typically cultivating subsistence crops on little over one hectare of rain-fed land. Nearly 70 percent of the population is poor, and the majority is chronically food insecure as a result of drought, floods, low-input agriculture, high marketing costs and land tenure insecurity. The average annual household income nationwide is estimated at $290; however, female-headed households—approximately 22 percent of all rural households—earn only about half of that amount.

In February 2005 ACDI/VOCA launched the Empowering Private Enterprise in the Development of Agriculture (EMPRENDA) project in Mozambique’s Beira and Nacala Corridors to increase per capita rural family income and promote productive asset accumulation. The project is an alliance between ACDI/VOCA, CLUSA and TechnoServe, Inc., who together have made substantial progress in developing new rural enterprises in Mozambique and have assisted rural enterprises in generating $6.5 million in revenues in previous projects. EMPRENDA’s focus is to create and strengthen sustainable, competitive rural enterprises and farmer associations operating in the three value chains where smallholders have the greatest potential to increase their incomes: high-value horticulture (fruit, vegetables and floriculture), confectionary nuts (cashews, groundnuts and macadamia nuts), and field crops/animal feeds (oilseeds, legumes and cereals). EMPRENDA helps strengthen the management and planning skills of farmer associations to unite them at the zonal and regional levels in order to form stronger businesses and to link to other actors in the rural economy.

The program analyzes market chains for key commodities such as maize, soybeans, nuts, and fresh fruits and vegetables. Mozambique enjoys a seasonal advantage over neighboring countries such as South Africa, as it can generate revenues up to 20 percent higher than its competitors. Tropical fruit, especially mangoes, is one such area where an earlier harvest season gives Mozambican farmers an advantage in capturing market demand. The Beira Corridor, where the program operates, is uniquely positioned to become a leading horticulture producer and offers 550,000 hectares of land suitable for fruit, vegetable or floriculture production. EMPRENDA staff teaches new production techniques and helps farmers market fruit and vegetables to high-end retail outlets such as supermarkets in the provincial capital. In collaboration with provincial and district unions and the Chimoio Agricultural Institute, EMPRENDA establishes improved marketing information systems so that farmers can assess the profitability of different market options.

ACDI/VOCA is active in organizing regional trade fairs where input suppliers, producers, processors, wholesalers and retailers can meet and do business. It has also introduced value-added processing technologies, such as frying equipment for making banana chips. By the end of the three-year project, it is anticipated that EMPRENDA will help generate $8.4 million in association sales and $14.4 million in rural enterprise revenues, and mobilize $5.8 million in new finance. Over 540 profitable associations, with well-understood governance structures and audited accounts, are expected to engage a membership of 16,250. These associations will further be linked to three functioning district unions.

EMPRENDA also recognizes the additional burden born by rural women in Mozambique in their traditional household roles. Gender issues are examined throughout the program, helping women to improve their incomes and stature, and to achieve their rightful position and voice. Additionally, EMPRENDA engages in activities to empower women in rural agribusiness through functional literacy programs and the proactive recruitment of female staff and contact farmers. Farmer organizations are used as vehicles for communicating vital HIV/AIDS prevention messages. By building local capacity to plan, manage, produce and sell, ACDI/VOCA strengthens the rural business sector and helps female and male smallholder farmers increase their household income.

At the end of 2007, ACDI/VOCA was working with 91 tier 1 associations and 1 tier 2 association called SIWAMA, which includes 32 associations. As part of the ongoing evaluation of associations, EMPRENDA focuses its efforts on continuing to support fully active associations. ACDI/VOCA has helped 1,682 member households, of which 680 are women-headed households. In the last quarter of 2007, sales proceeds from off-season vegetables at local markets and urban markets in Manica, Chimoio, Gondola, Dondo and Beira totaled $229,288.

For more information, contact Cathy Phiri at cphiri@acdivoca.org.

Updated: 3/08

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