Mozambique’s abundant arable land holds immense but largely untapped potential. Most farmers are trapped in subsistence farming, relying on traditional methods and constrained by limited access to the improved seeds, fertilizers, and agricultural knowledge that would boost their low productivity. Mozambique’s government—also lacking resources—is hard pressed to close these gaps.
The Swiss-funded Promoting Sustainable Agriculture Market Systems (PROMAS) project set out in 2023 to address the structural weaknesses in Mozambique’s agricultural sector. One of the key steps was building up agricultural input markets in underserved areas. PROMAS partnered with agribusinesses to extend their distribution networks to downstream partners to sell certified seeds and modern fertilizers, marketing these and other essential inputs through village markets and road shows.
At the same time, PROMAS supported agribusinesses to embrace digital recordkeeping, improve costing and pricing, and develop business plans and marketing strategies. To reduce the business risks of entering remote regions, PROMAS co-designed and cost-shared efforts such as advertising, improved store visibility, and marketing demonstration plots, all of which enables agribusinesses to better connect with farmers while reducing their financial risk.
PROMAS also engaged local farmers themselves as ambassadors for improved agricultural inputs. Trained in good agronomic practices, they became both concrete examples of rising productivity and formal instructors in their communities, training their neighbors on the benefits of certified seeds and fertilizers. Their advocacy boosted communal acceptance of modern techniques. With these inputs, PROMAS aim to help 26,000 rural farmers increase their crop yields over the life of the project.
In many regions, Mozambican farmers rely on just a few small traders to purchase their produce—a lack of competition on the buy side that depresses prices on the sell side. PROMAS facilitated the creation of rural fixed-buying points, equipped with digital scales and price boards, and quality control moisture meters to accurately evaluate produce quality and value run by Commodity Aggregation Traders (CATs).
The CATs act as alternative buyers for rural smallholders, increasing competition and supporting higher prices for farmers’ produce. CATs especially benefitted female farmers who struggled to travel long distances to sell their goods. Fixed rural buying points provide better access to sellers and more attractive sale prices. The project also helped CATs to expand operations by subsidizing trucks and warehouses to support the storage and transport of large produce volumes.
As these volumes grew, the CATs became attractive partners for bigger buyers, including international purchasers. International buyers started providing the CATs support, including advances to increase their working capital and market intelligence around desirable varietals and quality requirements. Over the next few years, PROMAS hopes to equip 40 CATs to grow sales volumes in the region by $20 million.
Finally, PROMAS helped famers access capital by promoting savings mechanisms. PROMAS partnered with a fintech company to digitize local savings records and hold savings in safer, interest-bearing investments. This provided farmers with secure, accessible credit that improved productivity and income.
Two years into the project, agricultural markets now exist in regions previously neglected by agribusinesses. Improved inputs are more accessible in rural communities and farmers have adopted modern farming techniques and inputs, increasing their yields. Small traders have expanded their businesses, creating vibrant competition that benefits rural communities and increases farmer incomes. And digitized savings groups are helping farmers save and secure financial credit, laying the foundation for even greater productivity and resilience.
