Agriculture is one of the most effective drivers of inclusive economic growth, having the highest multiplier effects on poverty alleviation, estimated to be four times the impact on poverty reduction compared to other sectors of the economy. Subsequently, a study from the International Food Policy Research Institute (IFPRI) found that a 1% growth in the agriculture GDP results in a 2.6% reduction in poverty, compared to 1% overall GDP growth resulting in only 0.25% reduction in poverty. Mozambique ranks 181 out of 189 on the UN Human Development Index, a reflection of the depth of poverty and poor social indicators such as literacy, malnutrition and maternal mortality. National poverty rates are between 41–46% of the population which equates to around 10.5 and 11.3 million people in absolute poverty.
Broad-based, long-term economic development in Mozambique is limited by weak, inefficient, and noncompetitive market systems that do not sufficiently include or benefit smallholder farmers, youth, and women. A recent Michigan State University analysis on agricultural development in Mozambique found that only 15-20% of smallholder farmers have both the resources and the incentives to become commercial farmers. The remaining 80-85% of smallholders will not escape poverty through farming, and will need to find off- and non-farm employment to supplement or replace their incomes from agriculture.
Life of Activity
Total USAID Funding
The Feed The Future Mozambique Promoting Innovative and Resilient Agriculture Market Systems (PREMIER) activity is a five-year $25.5 M activity that will promote inclusive and resilient agriculture-led growth along the Nacala corridor of northern Mozambique. It supports the goals and objectives of Feed the Future to reduce poverty, fight hunger, increase smallholder incomes, and improve nutrition. This activity focuses on applying a market systems approach that will incentivize responsible private sector investment, improve access to finance, enhance risk mitigation management, and expand employment and entrepreneurship opportunities, particularly for youth and women. The goal is to achieve transformational results by targeting small and medium sized agribusinesses, and smallholder commercial farmers. The activity will use multiple pathways to stimulate agricultural growth, working with private sector market system/food system actors of all sizes, including commercial farmers, processors, service providers, traders, transporters, and others to enhance the competitiveness of market systems. It will also facilitate participation in commodity and service markets for youth and women, and for smallholders with potential for commercialization.
Through this activity, PREMIER aims to target USAID/Mozambique Country Development and Cooperation Strategy (CDCS) Development Objective Two (DO2): “ Diversified and Inclusive Economic Growth” through more rewarding and competitive agribusiness, and increasing entrepreneurship and technical capacity. To enhance collective impact and improve efficiency of implementation across programs, PREMIER will link with other USAID activities such as Integrated>/p>
Resilience in Nutrition and Agriculture (RESINA) , Resilient Coastal Communities (RCC), USAID Southern Africa Trade and Investment Hub, USAID SPEED (Supporting the Policy Enabling Environment for Development), and FTF Innovation Labs. These linkages target specific key areas to help drive economic growth in Mozambique and improve systemic pover.
The FTF Premier activity will be implemented by TechnoServe as the lead and DAI, Elim Servicos and Partners in Food Solutions (PFS) as sub-partners. The five years activity will work in seven districts of the Nacala Corridor (Cuamba, Balama, Gurué, Meconta, Malema, Nampula and Nacala) using a Market Systems development approach to build strong and trust relationships with key markets system actors through co-creation.
Under PREMIER, TechnoServe and its partners will help a variety of market actors seize on value-adding opportunities that attract additional private sector investment into the corridor. PREMIER will implement a facilitative market systems development (MSD) approach driven by three core components: a) support agricultural firms to expand local value addition in value chains with growing and attractive opportunities in export and local markets; b) strengthen the local agro-processing industry within key geographic nodes; and c) improve the capacity of local third-party service delivery partners to provide business, financial, and technical advisory and assistance. The Activity will establish critical foundational elements for a resilient market system, improving the capacity of private, public, and civil society actors to absorb and adapt to future shocks and stressors. Activities under each sub-objective (SO) will be delivered by local partners with Premier staff serving to guide, build capabilities, and pivot where needed.
Increase profitability of agricultural enterprises - Increase incomes by an average of 30% and/or improve employment for over 100,000 individuals, including 26,700 women and youth.
Deepen and accelerate inclusive and resilient agricultural growth -Generate $58M in annual sales by supported agribusiness firms and farmers
Strengthen and expand access to markets and trade for farmers and SMEs - Facilitate $6M in new inclusive contracts for agribusinesses to reach 100K SHFs
Increase access to financial services for farmers and agribusiness SMEs
Expand economic opportunities and employment (on and off-farm) for women and youth
Produce 65,000 MT of nutritious food