Client: U.S. Agency for International Development
Duration: 2017-2022
Region: Sub-Saharan Africa
Country: Mozambique
Solutions: Economic Growth
Mozambique has one of the best records of sustained economic growth in Africa, averaging a 7 percent increase in GDP per year for the last decade. However, poverty and malnutrition rates remain high while food availability is limited by low yields and inadequate access to markets. To address these issues, the government of Mozambique has launched an ambitious plan to grow its agricultural sector in an inclusive manner to reduce poverty and alleviate hunger throughout the country.
In support of this goal, the U.S. Agency for International Development (USAID) launched the Feed the Future Agricultural Innovations (FTF Inova) project to partner with farmers, businesses, and policymakers to explore ways to improve production and increase sales of key cash crops vital to Mozambique’s economy. In addition to providing technical assistance and training, FTF Inova leveraged project funds to strategically buy down risk and co-finance with farmers and agribusiness to promote investments in equipment upgrades, climate-smart agriculture, and women’s empowerment.
In developing value chains, FTF Inova took a portfolio approach adapted from the finance industry, relying on diversified assets, active monitoring of performance, and the flexibility to rebalance investments based on changing market dynamics. Also central to FTF Inova’s work was the co-creation of pilot interventions, which involved partnering with local private-sector firms to develop innovative and inclusive agribusiness models and demonstrating their viability to potential stakeholders. By encouraging private sector partners to invest in innovations across three portfolios (input distribution, supply chain, and support services), the project has left a clear pathway for local actors to address inefficiencies in Mozambique’s agriculture sector.
Since 2017, FTF Inova managed to reach more than 100,000 individuals (mostly smallholder farmers), increasing their voice, choice, and control of accessible inputs and improved productivity; engaged more than 100 local businesses to improve access to formal market buyers/sellers for/to smallholder farmers; and leveraged $1.8 million from the private sector, enabling partners to generate $56 million in sales.
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