Mozambique’s vast arable land holds significant potential, yet much of it remains underutilized. Many farmers are trapped in subsistence farming, relying on traditional methods that limit productivity. Limited access to improved seeds, fertilizers, and agricultural knowledge further hinders their ability to increase yields and income. Additionally, resource constraints make it challenging for the government to bridge these gaps.
A market-driven approach has been introduced to address these challenges, focusing on strengthening agricultural input markets in underserved regions. By collaborating with agribusinesses, distribution networks have expanded to ensure farmers can access certified seeds, modern fertilizers, and other essential inputs. These products are now more readily available through village markets and promotional roadshows, making it easier for farmers to integrate modern practices into their work.
To help agribusinesses navigate these changes, efforts have been made to improve their operations. Digital recordkeeping, cost management strategies, and business planning support have been introduced to increase efficiency and profitability. Recognizing the risks of entering remote markets, initiatives such as advertising campaigns, improved store visibility, and marketing demonstration plots have been co-designed and cost-shared. These efforts reduce financial risk while strengthening connections between businesses and farmers.
Farmers themselves have played a crucial role in promoting the adoption of improved agricultural inputs. Select individuals have been trained in good agronomic practices and have taken on the role of community ambassadors. Through their firsthand experience with increased productivity, they serve as both examples and instructors, educating their neighbors about the benefits of certified seeds and modern fertilizers. This peer-driven approach has accelerated the acceptance of modern farming techniques, helping thousands of rural farmers increase their crop yields.
Beyond productivity, smallholder farmers have historically faced challenges in selling their produce at fair prices. Many rural regions have only a few small traders purchasing goods, leading to limited competition and suppressed selling prices. To address this, rural fixed-buying points have been established, equipped with digital scales, price boards, and moisture meters to ensure accurate quality assessments. These centers, run by Commodity Aggregation Traders (CATs), serve as alternative buyers, fostering competition and improving market conditions for farmers.
The presence of CATs has particularly benefitted female farmers, who often face difficulties in traveling long distances to sell their produce. By offering nearby and reliable selling points with competitive prices, these buying centers have provided better market access and income opportunities. Additionally, CATs have been supported in expanding their operations through subsidies for trucks and warehouses, enabling them to store and transport large volumes of produce efficiently.
As trade volumes have increased, CATs have also attracted interest from larger buyers, including international markets. These buyers have begun providing financial advances to CATs to strengthen their working capital and offering market insights into desirable crop varieties and quality requirements. The goal is to continue expanding the reach of these aggregation traders and significantly boost sales volumes in the region.
Another key challenge for farmers has been limited access to financial resources. To address this, local savings mechanisms have been introduced, allowing farmers to pool their resources and build financial security. Digital tools have been incorporated to ensure safe recordkeeping and facilitate interest-bearing investments, providing farmers with secure credit options. This increased financial stability has enabled them to invest in improved inputs, further enhancing productivity and income potential.
Two years into the initiative, agricultural markets have begun to flourish in regions previously overlooked by agribusinesses. Modern farming inputs are more accessible, and improved techniques are driving higher yields. Small traders have grown their businesses, creating a more competitive and dynamic market that benefits rural communities. Additionally, digital savings groups have empowered farmers with financial tools, setting the stage for sustained growth, resilience, and economic development in the agricultural sector.
