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Support to inclusive and sustainable development in the Zambezi Valley, Mozambique Formulation of a project to be funded by the Dutch Government to the Zambezi Valley Development Agency and strategic partners Jan Douwe meindertsma (MC- Team Leader) Niek Bech (DHV) John Belt (KIT) Anna Locke (ODI) Marco Machado (iDE) Final Report The Centre for Development Innovation, part of Wageningen UR (Wageningen University & Research centre) works on processes of innovation and change in the areas of secure and healthy food, adaptive agriculture, sustainable markets and ecosystem governance. It is an interdisciplinary and internationally focused unit of Wageningen UR within the Social Sciences Group. Through facilitating innovation, brokering knowledge and supporting capacity development, our group of 60 staff help to link Wageningen UR’s expertise to the global challenges of sustainable and equitable development. The Centre for Development Innovation works to inspire new forms of learning and collaboration between citizens, governments, businesses, NGOs and the scientific community. More information: www.cdi.wur.nl Innovation & Change Ecosystem Governance Adaptive Agriculture Sustainable Markets Secure & Healthy Food Support to inclusive and sustainable development in the Zambezi Valley, Mozambique Formulation of a project to be funded by the Dutch Government to the Zambezi Valley Development Agency and strategic partners Jan Douwe Meindertsma (MC-Tem Leader) Niek Bech (DHV) John Belt (KIT) Anna Locke (ODI) Marco Machado (iDE) Final Report September 2012 Project code 8141207600 Report number CDI-12-020 Centre for Development Innovation, Wageningen UR Support to inclusive and sustainable development in the Zambezi Valley, Mozambique Formulation of a project to be funded by the Dutch Government to the Zambezi Valley Development Agency and strategic partners Belt, J. Bech, N. Locke, A. Machado, M. Meindertsma, J.D. September 2012 Centre for Development Innovation, Wageningen UR (University & Research centre) This report is part of a support initiative of the Netherlands government to the Zambezi Valley Agency in Mozambique. Investment opportunities in agricultural value chains in the Zambezi Valley are identified, including opportunities for the Dutch private sector. There are good prospects for agribusiness development in value chains, such as vegetable growing, dairy, poultry, vegetable growing and fisheries. Furthermore, suggestions are provided to support capacity development of the Zambezi Valley Agency. Orders + 31 (0) 317 486800 [email protected] Table of contents Executive summary ............................................................................................................................ v List of abbreviations and glossary ...................................................................................................... vi Introduction ...................................................................................................................................... 1 Part A: Context 3 1 Country performance ............................................................................................................... 5 1.1 Socioeconomic development ...................................................................................... 5 1.1.1 Gross Domestic Product and macro indicators .................................................. 5 1.1.2 Poverty .......................................................................................................... 6 1.2 The agricultural sector .................................................................................................. 7 1.3 Private sector development ........................................................................................... 9 1.4 Political environment .................................................................................................. 11 2 Development strategies and policies ........................................................................................ 13 2.1 Mozambicans policies and strategies ........................................................................... 13 2.1.1 Overall development policy ............................................................................. 13 2.1.2 Agriculture and agribusiness .......................................................................... 13 2.1.3 Access to land .............................................................................................. 15 2.1.4 Private sector development ............................................................................ 17 2.1.5 Environment and natural resource management ............................................... 17 2.1.6 Decentralization ............................................................................................ 18 2.2 Development policies of the Dutch Government ............................................................ 19 2.2.1 Priority areas ................................................................................................ 19 2.2.2 Mozambique: partner country in Dutch development cooperation ....................... 20 3 Agro-ecological and socioeconomic conditions of the Zambezi Valley ......................................... 23 3.1 Drivers of development ............................................................................................... 23 3.1.1 Uneven development in the Lower Zambezi Valley ............................................ 23 3.1.2 Coal as driver of development in the Lower Zambezi Valley ............................... 24 3.1.3 Opportunities and risks from the mining boom ................................................. 24 3.1.4 Infrastructure and access .............................................................................. 27 3.1.5 Availability and quality of human resources ...................................................... 29 3.2 Natural resources ...................................................................................................... 30 3.2.1 Availability and quality of natural resources ...................................................... 30 3.2.2 Environmental issues and climate change ........................................................ 33 4 Agribusiness models and investment opportunities .................................................................... 37 4.1 Inclusive and sustainable agribusiness models .............................................................. 37 4.1.1 Inclusive and sustainable business models ....................................................... 37 4.1.2 Value chain approach ..................................................................................... 37 4.1.3 Most common model: the outgrower scheme .................................................. 38 4.1.4 Alternative and complementary models ........................................................... 40 4.1.5 Financial models ........................................................................................... 43 iii 4.2 Portfolio of investment opportunities ............................................................................ 44 4.2.1 Potential and criteria for selection of priority value chains ................................. 44 4.2.2 Involvement of Dutch private sector ................................................................ 45 4.2.3 Agribusiness investments in Zambezi Province ................................................. 46 5 Institutional analysis of the ADVZ ............................................................................................. 51 5.1 Origins and history ..................................................................................................... 51 5.2 Objectives and mandate ............................................................................................. 53 5.3 Structure and organization .......................................................................................... 53 5.4 On-going activities ...................................................................................................... 55 5.5 Assessment of available capacities .............................................................................. 56 5.6 Financial systems, processes and resources ................................................................ 57 Part B: Programme proposal 61 6 Support to inclusive and sustainable agricultural development in the Zambezi Valley .................... 63 6.1 Introduction ............................................................................................................... 63 6.2 Rationale ................................................................................................................... 63 6.3 Objectives and results ................................................................................................ 65 6.4 Programme intervention approach ............................................................................... 66 6.4.1 Focus on multi-sector planning and agribusiness development ........................... 66 6.4.2 Long-term partnerships with Dutch knowledge institutes ................................... 66 6.5 Programme components ............................................................................................ 68 6.6 Beneficiaries, stakeholders and areas of collaboration ................................................... 68 6.7 Sub-component 1.1 Strategic studies and planning ....................................................... 71 6.8 Sub-component
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