81308806-Strengthening inclusive business models, service provision and financial systems in rural areas

The project "Strengthening the competitiveness of selected value chains in Mozambique" (VaMoz Competir) is commissioned be the German Federal Ministry of Economic Cooperation and Development (BMZ) from 10/2023 to 08/2026. It aims at an improved competitiveness of Mozambican micro, small and medium-sized enterprises and smallholder farms in rural and coastal regions. To achieve this, the following three outputs will be implemented: Output 1: Private Sector Development Focus on integrated development partnerships with the private sector to strengthen the business development of smallholder farmers, service providers and agricultural companies. This includes capacity building on entrepreneurial and technical skills as well as digitization. Output 2: Improved Access to Finance Through a multi-level approach, the conditions for access to financial services will be adapted to the agricultural sector with the objective to improve the competitiveness of lead firms, service providers and smallholder farmers. The project aims to improve the work of financial service providers as well as the qualification of potential beneficiaries. Output 3: Improved Ecosystem for Private Sector Services in Rural Areas The access of rural stakeholders to financial, technical and business services will be improved by strengthening decentralized service provision (agribusinesses, cooperatives and small entrepreneurs), business acceleration programmes and improvements to sector governance. The target group includes 10 lead firms that operate inclusive business models as well as 70 MSMEs and 8,000 smallholder farms in rural areas and coastal regions, of which 25 MSMEs and 4,000 smallholder farms are led by women and 16 MSMEs and 2,500 smallholder farms are led by young people. 5 lead firms, 30 MSMEs and 5,600 smallholders, of which 15 MSMEs and 2,800 farms are run by women and 10 MSMEs and 1,700 farms are run by young people, will be supported in accessing banking products and financial services, including savings groups. Additionally, 4,000 jobs have to be created, including seasonal work, e.g. farm hands. The political partner of VaMoz Competir Ministry of Agriculture and Rural Development (Ministerio da Agricultura e Desenvolvimento Rural, MADER). An implementation agreement is currently in preparation and expected to be signed by August 2024. MoUs are signed or in preparation with the Mozambican Central Bank (Banco de Moçambique), M-PESA, the Mozambican Association for the Promotion of Modern Cooperativism (Associação Moçambicana para a Promoção do Cooperativismo Moderno - AMPCM) and the Zambezi Valley Development Agency (Agência de Desenvolvimento do Vale do Zambeze - ADVZ). The project is establishing a steering structure together with MADER. In the districts where the project will be implemented, the District Service for Economic Activities (Serviço Distrital de Actividades Económicas - SDAE) will be involved. In addition to the module target indicators of the country package, particular attention is paid to the cross-cutting issues of gender equality, youth employment, digitalisation, farmer organization and mechanisation. Sustainability strategies must pay particular attention to these topics.