6 November 2012

Mozambique: Guebuza Stresses Role of Value Chains

Maputo — Mozambican President Armando Guebuza on Monday stressed the importance of partnerships between the public and private sectors in stimulating the value chains of goods and priority services as part of the fight against poverty.

The value chain, he added, should be seen as a mechanism for generating income and jobs, a support for food and nutritional security, and a factor in strengthening rural businesses.

The action of the government, Guebuza said, was aimed at “the continual improvement of the institutional framework and of the capacity of the actors in the value chain so that their performance will be in line with the growing dynamic that the opportunities for Mozambican entrepreneurial skills creates”.

He was speaking at a gala dinner in Maputo, organised by the US-based company Technoserve, which is involved in agro-industry and tourism in Mozambique.

Guebuza claimed that the decentralization under way in Mozambique, together with public and private investments in areas such as energy, roads, agriculture, tourism and mining, are having a major impact on job creation, income and food security.

He stressed in particular the changes taking place in the districts, as a result of the growing number of agricultural extensionists who are transferring production and processing technologies to farmers.

These changes were also driven by the investments made in the districts, and notably by the District Development Fund (FDD), allocated from the state budget to each of the 128 districts. The FDD is still commonly referred to as “the seven million”, since it started off, in 2006, as a transfer of seven million meticais (about 240,000 US dollars) to each of the districts. Today, the amounts transferred are larger than seven million meticais and vary depending on the size and population of the district.

Guebuza said that the value chain approach is oriented towards interventions in agriculture, taking into consideration the transfer of technology, and the supply of agricultural inputs, as well as production, processing and marketing.

“This integration adds value to agricultural, livestock, forestry and wild life products, bringing benefits to the producer communities, expressed in improvements in their quality of life”, he said.

He praised Technoserve for its activity in exploiting value chains. The company is involved, for instance, in reviving the processing of cashew nuts in Nampula and Zambezia provinces, and in promoting the production of mangoes in Manica and bananas in Maputo, Manica and Nampula.

It is also encouraging poultry farming in Maputo, Manica, Nampula and Zambezia, and the production of soya for animal feed in Tete, Manica and Zambezia.

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