Mozambique’s aspirations for agricultural modernization are facing significant headwinds as women and young people continue to be locked out of essential financing, according to the Food and Agriculture Organization (FAO).
Speaking at the first meeting of the Agricultural Sector Coordination Committee (CCSA), FAO representative José Fernandez emphasized that despite recent progress, deep inequalities in access to resources and services persist.
“Rural women and young people remain under-represented in value chains, production processes and the division of labour,” Fernandez stated. He argued that unlocking their potential through inclusive policies and climate resilience measures is crucial for the sector’s long-term sustainability.
The Push for Private Capital
The FAO representative stressed the need for greater private sector investment to drive innovation and create quality employment.
“The private sector, when properly engaged, can speed up the modernization of agriculture and fisheries, expand market access and support balanced regional development,” Fernandez said.
The call for capital comes as the Minister of Agriculture, Roberto Albino, criticized the country’s continued dependence on food imports, insisting that Mozambique possesses the capacity for local self-sufficiency. Albino urged farmers to prioritize competitive production to serve the domestic market.
German Funding Boost
The focus on agricultural finance received a timely boost with the announcement that Germany, via the German Development Bank (KfW), will provide €45.5 million ($49 million) in funding.
The financing mechanism, dubbed FINOVA, is specifically designed to support micro, small, and medium-sized enterprises (MSMEs) in the agricultural sector. At the launch in Maputo, Planning and Development Minister Salim Valá underscored the commitment of the German fund to generating jobs and boosting incomes in the country’s vast rural economy.
