Phase 1

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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.

Country/region	Topic	Period	Budget
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

The project in brief

Background	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.
Objectives	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.
Target groups	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)
Medium-term outcomes	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.
Results	Expected results: 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 Results from previous phases: 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.
Directorate/federal office responsible	SDC
Project partners	Contract partner Private sector Foreign private sector North DAI Global UK
Coordination with other projects and actors	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
Budget	Current phase Swiss budget CHF 9’250’000 Swiss disbursement to date CHF 1’609’622 Budget inclusive project partner CHF 9’250’000
Project phases	Phase 1 16.01.2023 - 31.12.2027 (Current phase)

Further technical details

Sector according to the OECD Developement Assistance Commitiee categorisation	BUSINESS & OTHER SERVICES AGRICULTURE INDUSTRY INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation	Business support services and institutions Agricultural services Industrial policy and administrative management Small and medium-sized enterprises (SME) development
Cross-cutting topics	The project promotes biodiversity. Crisis prevention
Aid Type	Mandate with fiduciary funds
Project number	7F10454