Concept stage

Download 26.8 Kb.
Size26.8 Kb.


7 February 2014

Report No.: AB7513

(The report # is automatically generated by IDU and should not be changed)

Operation Name

MZ Second Agriculture Development Policy Operation AgDPO-2






General agriculture, fishing and forestry sector (58%); Agro-industry, marketing, and trade (14%); Petrochemicals and fertilizers (14%); Central government administration (14%)

Operation ID


Lending Instrument

Development Policy Lending



Implementing Agency

Ministry of Planning and Development

Av. Ahmed Sékou Touré, 21, 4th floor



Fax: (258-21) 492-625

Date PID Prepared

February 7, 2014

Estimated Date of Appraisal

April 14, 2014

Estimated Date of Board Approval

July 3, 2014

Corporate Review Decision

Following the corporate review, the decision was taken to proceed with the preparation of the operation.

Other Decision {Optional}

Teams can add more if they wish or delete this row if no other decisions are added

  1. Key development issues and rationale for Bank involvement

Mozambique’s economic growth continues to be strong and the medium-term macroeconomic outlook is positive. The authorities expect real GDP to grow by 7.9 percent during 2013-15, driven by agriculture, the extractive industries, electricity and water, construction, and transportation and communications. As discussed in Mozambique’s Poverty Reduction Strategy Paper (Plano de Acção para a Redução da Pobreza - PARP), the GoM proposes reforms to support stronger growth in these labor intensive sectors, which will take time to implement.

The PEDSA is the government’s strategic plan for the development of the agricultural sector for the period 2011 to 2020. It is characterized by a multi-sector, inter-ministerial approach to improving agricultural performance; its strategic objective is to “contribute to food security and producer income in a competitive and sustainable manner that guarantees social and gender equity.” With implementation of the PEDSA, the government seeks to achieve an annual growth rate in agriculture of at least 7 percent, through a combination of increased farm productivity (i.e., higher yield per hectare (ha)) and an expansion of cultivated area (an increase of 25 percent by 2020 of the area cultivated for food crops). The PEDSA promotes the creation of an enabling environment conducive to stronger private sector participation (including smallholders and other economic actors) in the various commodity value chains. The PEDSA prioritizes public investments in areas of strong economic potential while supporting local initiatives and non-farm activities elsewhere. Six development corridors are identified where agriculture-related investment operations financed by the Bank are already under implementation, including the Zambezi Valley and the Beira corridors in central Mozambique.
The programmatic series of three Agriculture Development Policy Operations (AgDPO) is a logical extension of the lessons learned by the government and donors after a decade of operational and institutional engagement in agriculture. Amidst the various sector strategies, institutional development programs, and operational projects, the AgDPO series fills the growing policy gap that has been a determinant of the mixed results in agriculture performance in recent years. To achieve agricultural growth, the GoM complements its new agricultural sector strategy (PEDSA), its recent national Comprehensive Africa Agriculture Development Programme (CAADP) Compact, and its subsequent medium-term sector investment plan (PNISA) with a medium-term program of policy and institutional sector reforms: the AgDPO series provides the GoM the opportunity to prioritize, select, implement, and report on the implementation of selected sector policy instruments.

  1. Proposed Objective(s)

The Development Objective of the AgDPO series is to contribute to increasing production and enhancing productivity in the agriculture sector through the implementation of a medium-term sector policy and institutional reform agenda. To support the GoM’s strategic objective of achieving food security through sustainable and equitable growth in the agriculture and fisheries sectors, the AgDPO series is articulated around three strategic thematic areas (Technology Adoption, Access to Assets, and Sector Performance Monitoring) that are aligned with the pillars of the Bank’s Africa strategy for agriculture (land and water management, agricultural markets and infrastructure, food security and vulnerability, and agricultural technology). This strategy is itself aligned with the architecture of the African Union-endorsed CAADP, as reflected in the GoM’s national CAADP Compact, signed in December 2011.

The AgDPO series is designed as a programmatic series of three consecutive annual credits to support a sequence of medium-term policy and institutional reforms in agriculture. More specifically, the design of the DPO series and the choice of policy areas reflect the need for a broader approach to achieve the strategic objectives of the GoM as outlined in the PARP. In line with the PEDSA and the CAADP Compact, achieving significant results on the ground will require a multi-sector, inter-ministerial approach that addresses the policy and institutional bottlenecks hindering development and growth in the core areas of agriculture. It will further require the GoM to adopt measures that help improve the performance of sectors that influence the enabling environment, in turn generating positive outcomes for growth in the agriculture and fisheries sectors.

  1. Preliminary Description

Policy Area 1: Improving Technology Adoption for Enhanced Productivity and Nutrition

Mozambique’s agriculture remains characterized as largely rainfed, subsistence, low input use, and primarily smallholder operated. To bring about transformational changes that will help smallholder producers transition from being subsistence farmers to emerging market-led entrepreneurs, a significant increase in the adoption of new advanced technologies is required – and at a much larger scale than is currently happening. To achieve this, the AgDPO series addresses specific factors hampering the broader adoption of agricultural inputs (seeds and fertilizers); significantly higher and more efficient use of water for agriculture; and the wider dissemination of nutrition-related technologies. The policy and institutional measures the GoM seeks to implement in Policy Area 1 focus on: (i) increasing the participation of the private sector in the commodity value chains for seeds and fertilizers; (ii) enhancing performance in public irrigation schemes through improved management arrangements; and (iii) enhancing nutritional value of food through food fortification.

Prior Action 1: Adoption by MINAG and the Council of Ministers of regulations for the implementation of the decree on plant breeders’ rights that includes provisions for the protection of breeders’ intellectual property rights.

Prior Action 2: Adoption by MINAG of the composition and operational procedures for i) the Technical Evaluation Committee for the Registration of Fertilizers (CATERF) that includes a representative from MICOA, and ii) the Technical Advisory Committee on Fertilizer(CATF), that includes a representative from private sector.

Prior Action 3: Adoption by the Council of Ministers of an updated regulatory framework for the planning, implementation and management of irrigation infrastructure that provides for legal status of irrigation organizations, and defines user rights and management responsibilities.

Prior Action 4: Creation of a Joint Commission on Food Fortification sanctioned by a ministerial diploma by MIC and MISAU, and commencement of implementation of the food fortification program with the private sector.
Policy Area 2: Enhancing Access to Assets for Increased Production

Mozambique’s smallholder farmers are often rightly characterized as “asset poor households.” Moreover, studies indicate that in the current context, a large share of farming households likely require a considerable span of time before they can develop a bankable asset base. Further, the scale of benefits to the agriculture sector from new mega-projects remains uncertain. There is a need for the GoM to speed up the community land demarcation initiative and issue land user rights (DUATs) to producer associations currently farming on that land. Finally, since in Mozambique land cannot be used as collateral and farming households are generally asset poor, access to financial services should be enhanced to promote private sector-led agriculture growth. To that effect, the AgDPO proposes to support the asset-building policy and institutional changes committed to by the GoM, with the goals of: (i) increasing smallholder land tenure security in the face of sustained interest in land from larger-scale investors; and (ii) developing a policy and institutional environment conducive to a significant increase in access to financial services in rural areas.

Prior Action 5: Adoption by MINAG of operational procedures (developed in consultation with the National Land Forum) for communities seeking to enter into an agreement with a third party on the use of the land for which the community holds the user rights.

Prior Action 6: Implementation of revised regulations ratified by the Council of Ministers, that govern the creation, operation and reporting of Savings & Credit Cooperatives (CCP) and Rural Finance Associations (OPE) and facilitate the transition from informal savings and loans groups to CCP and OPE.
Policy Area 3: Monitoring Sector Performance

The growing popularity in recent years of performance-based management systems has greatly increased the demand for statistical data and information on agriculture. The GoM has committed to addressing the policy and institutional bottlenecks affecting the monitoring and reporting of the performance of the agriculture sector. The multi-year program of reforms proposed under the AgDPO series seeks to build a sustainable agricultural statistics system, integrated with the national statistical system, that will enable evidence-based decision-making and facilitate the design of policies and programs, as well as allow informed assessment and reporting on the performance of the agriculture sector and progress on implementation of PEDSA, the country’s CAADP agenda, and the AgDPO series.

Prior Action 7: Implementation of the integrated survey framework for agricultural statistics that links the Early Warning System (Aviso Previo) with the Agricultural Household Survey (TIA), in the 2013 agriculture survey.

  1. Poverty and Social Impacts and Environment Aspects

Poverty and Social Impacts

The main objective of this AgDPO series is to contribute to increasing production and productivity in agriculture through reforms designed to alleviate existing policy and institutional constraints to agriculture growth. Since some 70 percent of the country’s population is based in rural areas, with the vast majority of households dependent on agriculture for their livelihoods, agriculture growth-inducing reforms can be expected to have a direct and positive impact on overall rural poverty reduction. As such, the primary challenge for the GoM is to achieve agriculture-led, broad-based rural poverty reduction across the country (taking into account that 27 percent of rural farming households are women-led). Recent analytical work from the International Food Policy Research Institute1 concludes that with the right investments and policies geared towards reasonable improvements in crop and livestock yields, Mozambique can achieve the 7 percent agricultural growth target agreed on under CAADP and the PEDSA. This growth rate would lift almost 1 million people above the poverty line, thus greatly reducing the national poverty rate.

Environment Aspects

The specific country policies supported by the proposed AgDPO-1 operation are not likely to cause significant negative effects on the country’s environment, forests, or other natural resources. The proposed operation recognizes the GoM’s sector strategy and participatory processes, which are geared towards promoting the agricultural sector while ensuring protection and sustainable use of natural resources. The multi-sectoral nature of the AgDPO series also implies that linkages exist with many other operations in the Bank’s portfolio. Such linkages will result in a synergy that enhances better management of natural resources and minimization of adverse impacts. The irrigation sub-sector provides a good example: implementation of a mid-term irrigation investment plan (an AgDPO Prior Action) will likely lead to an increase in land irrigated. However, the GoM’s national irrigation policy clearly prioritizes the rehabilitation of existing irrigation perimeters (i.e., no clearing required). Further, given the nature of the investments, most of the works in rehabilitating irrigation schemes are likely to be occurring in the context of donor-funded operations for which rigorous environmental and social safeguards apply (e.g., the IDA funded PROIRRI project). Relatively adequate institutional capacity exists in Mozambique within the Ministry for Coordination of Environmental Affairs (MICOA) and its decentralized National Directorates for the Coordination of Environmental Affairs (DPCA) to develop and implement impact mitigation measures that could be necessitated with the implementation of the AgDPO-1 measures.

  1. Tentative financing





International Development Association (IDA)




Others (specify)



  1. Contact point

World Bank

Contact: Jan Joost Nijhoff

Title: Senior Agriculture Economist

Tel: +258 21 482347



Location: Maputo, Mozambique (IBRD)


Contact: Mr. Roberto Albino Mito

Ministry of Planning and Development

Agency for the Development of the Valley of Zambezi

Title: Director


  1. For more information contact:

The InfoShop

The World Bank

1818 H Street, NW

Washington, D.C. 20433

Telephone: (202) 458-4500

Fax: (202) 522-1500


1 IFPRI (2012): Strategies and Priorities for African Agriculture – Economy-wide Perspectives from Country Studies. Washington, D.C.

Download 26.8 Kb.

Share with your friends:

The database is protected by copyright © 2023
send message

    Main page