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INOVAGRO Phase III INOVAGRO Phase III Annual Report 2019 OCTOBER 2018 – SEPTEMBER 2019 Annual Report 2019 INOVAGRO Phase III INOVAGRO PHASE III CONTENTS CONTENTS EXECUTIVE SUMMARY .................................................................... 1 CONTEXTUAL ANALYSIS ................................................................. 6 Political Developments ................................................................................................ 6 Renamo Change in Leadership ............................................................................................................. 6 National Peace and Reconciliation ....................................................................................................... 6 Presidential and House of Assembly National Elections ................................................................... 6 Cyclone Idai and Cyclone Kenneth ............................................................................ 7 Cyclone Effects on infrastructures ....................................................................................................... 8 Economic Developments ............................................................................................ 9 Local Currency Value ............................................................................................................................. 9 Major Investments ................................................................................................................................10 Rainfall season 2018/2019 ......................................................................................... 10 Rainfall levels across Project Districts ..............................................................................................10 Rainfall outlook for the season 2019/2020 .........................................................................................12 VALUE CHAIN ANALYSIS ................................................................ 14 Project Outreach ........................................................................................................ 14 Maize Value Chain ................................................................................................................................14 Pigeon Pea Value Chain .......................................................................................................................16 Groundnuts Value Chain .....................................................................................................................17 Sesame Value Chain ............................................................................................................................18 Soya Bean Value Chain ........................................................................................................................19 Overall Comments ..................................................................................................... 19 OUTPUT MARKETING INTERVENTION ............................................ 22 Introduction ................................................................................................................ 22 Facilitation of establishment and operationalization of buying posts .................. 22 Purchases in 2019 ................................................................................................................................24 Gender participation in commodity aggregation ..............................................................................27 InovAgro and Partners’ Contribution operationalize the partnerships ..........................................27 Strengthening the business and governance systems of the CATs ..................... 29 Strengthening the Ministry of Industry of Commerce capacity ............................. 30 Changes in the market ............................................................................................... 31 Challenges and lessons learned ............................................................................... 31 Exit and sustainability plan ....................................................................................... 32 Focus areas for 2019 – 2020 ..................................................................................... 33 i INOVAGRO PHASE III CONTENTS ACCESS TO FINANCE ..................................................................... 35 Fundo Agrícola (FA) ................................................................................................... 35 Partnerships with Co-Facilitators .......................................................................................................35 Facilitation of partnerships between the DMCs and seed companies ...........................................36 Main achievements ...............................................................................................................................36 Performance of FA ...............................................................................................................................38 Evolution of FA .....................................................................................................................................40 Partnership with Formal Financial Institutions and Insurance providers ............. 41 BancABC ...............................................................................................................................................41 Letshego Bank ......................................................................................................................................42 Hollard Insurance .................................................................................................................................42 Lessons learnt ............................................................................................................ 42 Exit Strategy ............................................................................................................... 43 INPUTS AND EXTENSION INTERVENTION ...................................... 45 Introduction ................................................................................................................ 45 Partnerships during the reporting period ................................................................ 45 Input demand creation activities .............................................................................. 50 Establishment of demonstration plots ...............................................................................................50 Realization of field days .......................................................................................................................51 Distribution channels for selling seeds ................................................................... 53 Seed retail and distribution network ..................................................................................................53 Seed sales in village market fairs .......................................................................................................54 Village Based Agents ...........................................................................................................................55 Seed Purchases by Smallholder Farmers ................................................................ 56 Evolution of Seed Sales in 2016 - 2019 ..............................................................................................57 Lessons Learnt ........................................................................................................... 58 Focus Areas for the 2019-2020 ................................................................................. 59 ENABLING ENVIRONMENT ............................................................. 62 Outcome 4: A well-regulated and coordinated agricultural market operating in the value chains................................................................................................................ 62 APROSE – Seed platform for dialogue ..................................................................... 62 Operational and institutional capacity improvements .....................................................................62 Expanding Partnership and Support ..................................................................................................62 Three Year Strategy ..............................................................................................................................63 National seed policy & advocacy dialogue events appropriately facilitated by APROSE ............63 Perception of APROSE Members on Appropriateness and Effectiveness ....................................64 National Seed Authority (NSA) .................................................................................. 64 ii INOVAGRO PHASE III CONTENTS Training of Private Sector Seed Inspectors .......................................................................................64 Website and Database Development ..................................................................................................65 Support to the Ministry of Industry and Commerce on agricultural marketing .... 65 KNOWLEDGE MANAGEMENT, GENDER INCLUSION AND PROJECT RESULTS MEASUREMENT .............................................................. 67 Knowledge Management ........................................................................................... 67 Capturing of Key Knowledge Generated since Phase I ...................................................................67
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