Opportunities for Leveraging MSMEs in Agribusiness in Mozambique
Fact Finding Study on Leveraging MSMEs in Agribusiness in Mozambique
We conducted a study to recommend what, how, and where the Netherlands can support the development of agribusiness MSMEs in Mozambique, specifically in the Beira corridor and Cabo Delgado. The suggested mix of interventions will feed into the Netherlands Multi-Annual Country Strategy (MACS) of the Netherlands Embassy in Maputo and help with a gradual transition towards a more robust private sector.
The recommendations in this study are based on interviews with 34 key stakeholders. To analyze the data, we applied an ecosystem approach that identified relevant value chain interventions, stakeholders, and initiatives. This approach led to programme recommendations for available funding opportunities (e.g. PSD toolkit).
Agribusiness Micro Small and Medium Enterprises (MSMEs) dominate the agricultural sector and they are crucial actors for sustainable socioeconomic development. The study therefore identified the bottlenecks of these MSMEs and suggests leveraging points to unlock their economic potential. Chapter two describes six themes that constrain agribusiness MSMEs from scaling up: (1) Access to finance, (2) Access to knowledge, (3) Access to markets, (4) (Downstream) Value addition, (5) Scale-up impact makers, and (6) Transport and logistics. The themes further describe specific bottlenecks for which we propose leverage points.
Several principles for future programmes are suggested, including the long-term orientation of future programmes while incorporating adaptive structures that ensure continuous learning; working with actors with a proven track record; strengthening scalable businesses and value chains (perhaps even moving towards export); and strengthening formal and informal markets. Future programmes should include informal businesses as most private sector activities are of an informal nature and are driving local economies.
