Agriculture in Mozambique given US$39 million in loans and donations

5 October 2012

Mozambique has obtained US$39 million from two loans and two donations to finance agricultural activities in the provinces of Maputo, Gaza and Inhambane, and the funding was made official in Rome Wednesday.

The first loan, worth US$16.30 million was provided by the International Fund for Agricultural Development (IFAD) in order to fund the Value Chain Development Project in the Maputo and Limpopo Corridors (Prosul), which is intended to support the activities of small-scale producers.

The second loan, of the same value, was provided by the Spanish Fund for Co-Financing Food Safety and is aimed at the same project, and the same is the case for the two donations, one of US$4.91 million and the second for US$1.62 million.

The programme, which will be carried out in 19 districts of Mozambique, will include repairing and expanding irrigation systems in the horticultural production areas, including designing, building and maintenance of construction projects, as well as boosting the associations that use the water, including institutional support for the irrigation companies.

The project also includes improving cooperation between players in the cassava value chain, including setting up service centres in each target district, installing small processing units, promoting innovative agricultural practices and access to markets.

Since 1983, IFAD has funded 12 programmes and projects in Mozambique worth a total of US$218.9 million, which has benefitted over 2.1 million families. (macauhub)