New warehouses are
being built or are on the
drawing boards for Beira,
Nacala and elsewhere in
Mozambique and its neighbouring
countries to meet increasing demand
for agricultural inputs such as
fertilisers, seed and chemicals, as
well as for exports of the resultant
crop.
The Mozambican government is
focusing on boosting agricultural
production in the highly fertile
country in order to improve food
security, create and sustain jobs, and
for foreign exchange.
“The Mozambican economy is
basically agrarian,” Mozambican
president Filipe Nyusi is quoted as
saying at the official launch of the
government’s 2016/2017 agricultural
campaign in the central Zambezia
province.
“Agriculture employs more than
80% of the economically active
population. It contributes about 25%
to the gross domestic product and
is responsible for about 16% of the
country’s exports,” he said.
Of the 4.3 million farms in the
country, around 600 are large-scale
commercial farms.
Another 1% of farms – most of
which are around five hectares –
combine subsistence and commercial
farming.
Opportunities
have been
created by the
government
for commercial
farmers from
Zimbabwe, South
Africa and Brazil
in particular to
establish farms in
order to develop
the natural advantage Mozambique
has in the agricultural sector.
According to “Investment
Opportunities in Mozambique
Agribusiness Edition” by Monitor
Deloitte and SDMoçambique,
finance is being provided by private
equity funds in a diverse range of
sectors such as input production,
fruit and vegetables, fruit processing,
sugar manufacturing, honey
production and livestock.
“Mozambique has excellent agroclimatic
conditions and only 15% of
arable land is currently utilised,” it
states.
High transport
costs and poor
roads are,
however, a
barrier to the
growth of the
industry.
Private equity
firms have also
seen this as an
opportunity, and
are investing in transporters and
warehouse operators.
International aid agencies are also
providing funding for agricultural
and agro-industrial projects.
One is the Nampula Fruits
Training Centre, which is funded by
the World Bank.
Following the training of around
700 participants, fruit available for
family consumption is expected to
increase from 50 tons to 150 tons
per year (valued at US$40 000 and
US$120 000).
This has affected demand for
transport into the region.
“The project helped me to brand
my various products,” Judite
Celeste of WISSA Tipicamente
Mocambicana in Nampula Province
is quoted by the World Bank as
saying, “and this helped me overcome
a major obstacle and allowed me to
compete with imported products.”
There is also a focus on agroprocessing.
Italian private and public
institutions, together with the
African Development Bank, are
providing finance and expertise for
the development of agribusiness
through the Mozambique
Confederation of Economic
Associations (CTA).
INSERT 1
Mozambique has excellent
agro-climatic conditions and
only 15% of arable land is
currently utilised.
– Report
INSERT 2
Agriculture employs
80% of the active population;
contributes 25% to GDP and accounts for 16% of exports
