81320368-Implementation of field activities to strengthen competitiveness in selected blue economy value chains in Mozambique

Background Causes preventing MSMEs and farmers from harnessing the potential of agriculture, aquaculture and fisheries to generate enough income and create jobs, especially for women and young people, are manifold. Public services are not sufficiently available, and laws and regulations are inadequate or not consistently applied. Most MSMEs and farmers lack skills and access to financial services, especially in rural areas. However, Mozambique has favorable land, inland water and marine resources for increasing productivity and value addition to meet growing demand for food. The Government of Mozambique recognizes the importance of agriculture and the blue economy for economic development and supports the sectors through strategies such as the National Strategic Development Plan for the Agricultural Sector 2030 and the National Blue Economy Development Strategy. Our approach Within the framework of these strategies under the responsibility of the Ministry of Agriculture, Environment and Fisheries and by building on the experiences of different private sector development projects of German development cooperation in Mozambique, VaMoz Competir applies an integrated approach aiming at the creation of a more conducive environment for the development of the sector in rural and coastal areas. The project promotes income and employment opportunities through three interlinked work streams. 1. Value chain promotion Partnerships with well-established companies that source products from MSMEs and small producers are established aiming at a win-win situation of development and business targets. Within these partnerships, the project provides training to enhance skills, supports the development of digital solutions for supply chain management, and facilitates market processes. Better skills and linkages between small producers, processors, and service providers improve both the income situation and resilience to climate change. In the blue economy sector sustainable and inclusive upgrading strategies are developed and implemented in a participatory and systematic manner for selected aquaculture and fisheries value chains through the EU co-financing. 2. Access to finance By improving the bankability of MSMEs and introducing innovative financial products that are specifically tailored to the needs of agriculture and the blue economy, better conditions are created for access to needs-based financial services. Special emphasis is placed on services that meet the needs of women and young people. In addition, small producers and their organisations are enabled to make greater use of savings and insurance products and are supported in connecting to the formal financial system. This increases their resilience to economic and climatic challenges and ensures their long-term economic stability. 3. Rural economic ecosystem This work stream aims to benefit the private sector in rural areas in the long term. With this goal in mind, local support services for farmers and MSMEs are improved, and regional networks and support structures are established. This also includes support for the implementation of recommendations from national strategies and action plans as well as the public-private platform for the coordination of agricultural financing (CIFAM) under the leadership of the Ministry of Agriculture, Environment and Fisheries.