Inovagro Private Sector Led Rural Growth


Inovagro aims at increasing the incomes of poor farmers in Northern Mozambique, through ‘pro-poor’ private sector development. It improves farmers’ access to inputs and markets through local private, public and civil society partners. Phase III will consolidate the work of previous phases and focus on scale-up and replicability of successful interventions. There will also be a stronger focus on women inclusion, risk reduction, communication and knowledge sharing based on lessons learnt over the past years.

Country/region Topic Period Budget
Mozambique
Employment & economic development
Business support & economic inclusion
Industrial policy
SME development
02.01.2018 - 31.12.2020
CHF 7'370'000
Background

Mozambique’s economy has been on a downward trend since 2015. The political instability in the country however, has improved since December 2016. The declaration of the cease fire has contributed positively towards mobility and supply of goods and agriculture production in the north of the country.

Despite cycles of drought, cyclone and irregular rainfall patterns in 2015 and 2016, the 2016/17 was the best agricultural season during the last 16 years based on available data. Most areas of Mozambique are experiencing only minimal acute food insecurity as the majority of poor households are able to meet their basic food needs by selling and consuming their own produced food.

Mozambique is still predominantly poor with more than 80% of the economically active population engaged in subsistence agriculture, with very low levels of production, productivity and low incomes.

The project links the private sector to the poor farmers through specific interventions, reinforcing the dynamics of the rural and local economy as an important engine for a broad based growth.

Objectives The overall goal is to increase the income and improve the economic security of 30’000 poor men and women small-scale farmers (40% women) in Northern Mozambique.
Target groups
  • 30’000 small-scale farmers (40% women) characterized as low income Northern Mozambique individual female or male farmers, who are 18 years of age or older and whose family lives on less than USD1.90 per family member per day (World Bank’s extreme poverty definition).
Medium-term outcomes

Outcome 1 : improved small-scale farmers sales and commodity trading systems in the target value chains.

Outcome 2 : increased small-scale farmers crop productivity in the target value chains.

Outcome 3 :  well-functioning agricultural markets operating to supply commercial  certified seed and interconnected agri-services to small-scale farmers in northern Mozambique.

Outcome 4 : well-regulated and coordinated agricultural market and enabling environment.

Outcome 5 : stronger supporting environment consisting of development agencies and/or private investors applying additional and/or improved market systems approaches in Mozambique.

Results

Expected results:   Output 1.1: commodity traders have improved capacity to serve small-scale farmers. Output 2.1: small-scale farmers have improved technical and financial capacity to enhanced crop productivity, skills and technology. Output 3.1: agricultural input and service providers have improved capacity to supply small-scale farmers. Output 4.1: Multi-stakeholders have improved capacity and market linkages to engage and support market system policy reform. Output 4.2: Government has improved institutional capacity to coordinate regulatory reform, compliance and an enabling environment. Output 4.3: Small-scale farmers have improved access to land tenure registration and administration. Output 5.1: Agencies supporting agriculture are better informed to implement market systems interventions.


Results from previous phases:  

  • Despite its small budget (relative to other donor projects) Inovagro has been the dominant donor programme supporting the transformation of the seed sector in Mozambique.  In 2010, when Inovagro started, good quality seed was provided mainly through government and NGO subsidized programs. Most farmers did not have access to it.  Now, the supply of good quality seed to farmers is granted by the private sector.
  • Outreach: 14'083 small-scale farmers (10’554 men and 3’529 women) in soy bean, maize, sesame, pigeon peas and ground nuts value chains covering 11 districts in Northern Mozambique.
  • Farmers are using improved seed. During the 2016/17 campaign, productivity levels increased in the order of 50% in average.
  • The private sector purchased a total of 16’773 Metric Tons of grains from small-scale farmers resulting in additional revenue of 317’916’100 MZN (~5.5 million CHF) from 2014 to 2017.
  • A total of 2’195’213 MZN (~CHF 36’587) was saved by 3’802 small scale farmers (2’314 women and 1’488 men) through savings groups and associations from 2014 to 2017.
  • SDC’s support at policy level led to the government’s approval of a new Private Sector Seed Inspectors model (that was successful in other countries in the region).
  • The methodology and approach of Inovagro is already being replicated by other donor funded projects in Mozambique.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Foreign academic and research organisation
Private sector
  • Consultative Group on International Agricultural Research
  • Foreign private sector South/East


Coordination with other projects and actors HortiSempre II, LUR II, Futuro Mcb & Post Harvest Project (SDC projects); IIAM (Mozambique Agricultural Research Institute); Ministry of Agriculture; Ministry of Industry and Commerce, Provincial Government; private sector actors, WFP, USAID projects, DFID projects, Seed Dialogue Platform, Civil Society Organizations Financial Institutions, NANA, Ophavela and other NGOs.
Budget Current phase Swiss budget CHF   7'370'000 Swiss disbursement to date CHF   2'017'678
Project phases Phase 3 02.01.2018 - 31.12.2020   (Current phase) Phase 2 01.01.2014 - 31.12.2017   (Completed) Phase 1 01.01.2011 - 31.12.2013   (Completed)