Promoting Sustainable Agricultural Market Systems (PROMAS)


Agriculture is the main source of income for 70% of the population and is an important means to improve people’s livelihood. The sector suffers from low productivity and an unfavourable business environment. Thanks to better functioning markets and capacity building, smallholder farmers will improve their income and resilience through enhanced productivity, improved access to markets, climate adaptation, financial services and private sector development in northern Mozambique.

País / Região Tema Período Orçamento
Mozambique
Employment & economic development
Agriculture & food security
nothemedefined
Business support & economic inclusion
Agricultural services & market
Industrial policy
SME development
16.01.2023 - 31.12.2027
CHF  9’250’000
Contexto Agriculture provides a key source of income for more than 70% of the population and employment for 80% of Mozambicans. Smallholder farmers account for 95%, and commercial farmers for 5% of the agricultural production. In addition, women play a crucial role in growing food crops but are vulnerable as unequal intrahousehold relations and high illiteracy keep them trapped in low-return farming. The agricultural sector is characterized by low growth and productivity due to weak input (e.g. seeds, fertilizers) and output markets, limited access to financial services, vulnerability to climate change and other shocks and an unfavourable business environment. The Promoting Sustainable Agricultural Market Systems program will strengthen the functioning of the market systems to improve smallholder farmers’ income and employment opportunities, in particular for youth and women, in northern Mozambique. Compared to other donors Switzerland is building on a long standing experience in Mozambique (11 years) in private sector led agricultural market systems development. 
Objectivos Increase income and employment opportunities of male and female smallholder farmers, youth and micro, small and medium enterprises in Northern Mozambique through their engagement in resilient market systems.
Grupos Alvo
  • 32’000 female (40%), male and youth (40%) smallholder farmers and micro, small and medium enterprises
  • Private sector actors (inputs suppliers, output buyers, retailers, agroprocessors, and others)
Resultados a médio prazo

Outcome 1: Female, male and youth smallholder farmers enhance their productivity.

Outcome 2: Smallholder farmers and Micro, Small and Medium Enterprises access better functioning agriculture input and output markets.

Outcome 3: Female, male and youth smallholder farmers use adequate risk management instruments to be more resilient to climate change and other shocks.

Outcome 4: Conducive policies and regulations promoting inclusive agricultural value chain development are implemented.

Resultados

Resultados esperados:  

  • Smallholder farmers have improved technical and financial capacity for enhanced crop productivity, skills and technologies
  • Agricultural input and service providers have improved capacity to supply smallholder farmers with improved and climate smart inputs
  • Commodity traders have improved capacity to serve smallholder farmers
  • Service providers of weather information, agroecology practices, insurance and savings are better able to respond to smallholder farmers’ needs 


Resultados das fases anteriores:  

Inovagro project:

  • Reached more than 38’000 farmers (40% women), with 25’300 (50% women) increasing their income resulting in net income increase of 34 million USD.
  • Increase from no seed company (in 2014) to 10 seed companies (in 2021) selling certified seeds directly to farmers.
  • 34 commodity aggregator traders opened over 500 new buying posts closer to farmer, improving farmer’s access to markets. 
  • 20’000 farmers saved over USD 750’000 (up from USD 4’135 in 2015) for buying certified seeds/inputs.
  • Strong linkages between seed companies, distributors and lead farmers established.

Hortisempre project:

  • 48’000 farmers accessed certified seeds
  • Accumulated net income increase of farmers of USD 23 million. 32% net income increase per farmer. 40% productivity increase for farmers.

Insights:

  • The market systems development approach works in thin markets in northern Mozambique. It is important to address both the supply and demand sides of the market system. 


Direcção / Responsável no Departamento Federal SDC
Parceiros do Projecto Parceiro contractual
Private sector
  • Foreign private sector North
  • DAI Global UK


Coordenação com outros projectos SDC: OHOLO/PREMIER, Futuro Mcb, SIM!, LAGO, ISSD
Other donors: USAID, World Bank, FCDO, FAO, IFAD
Public sector: National Seed Authority, National Department of Agriculture, Provincial Dept Industry and Commerce, SDAEs, Governors/State agencies 
Orçamento Fase do projeto em curso Orçamento suíço CHF    9’250’000 Desembolsos Suíços até à data CHF    1’609’622
Fases do Projeto Phase 1 16.01.2023 - 31.12.2027   (Fase do projeto em curso)