FAO opens credit line of US$97.6 million for Mozambique

17 November 2014

The United Nations Food and Agriculture Organization (FAO) has opened a line of credit to reduce pockets of hunger in at least 36 districts of the development corridors of Maputo, Beira and Nacala starting in 2015, Mozambican daily newspaper Correio da Manhã reported.

The credit line is intended for family producers of grain, legumes and vegetables, and loans will only be available in the first quarter of 2015 with a repayment period of five years.

A source from Agriculture Ministry source cited by the newspaper added that the FAO is funding other African countries considered to be poor, with high rates of hunger in rural areas, under the “More Food for Africa” ​​initiative, launched in 2010 in Brazil.

In the case of Mozambique, the UN organisation that also plans to provide training to small-scale farmers, for a five-year period, during the transition from predominantly manual agriculture to mechanised agriculture scheduled to start in 2015 and should cost about US$9.3 million.

In the first year, farmers will benefit from means of production, such as fertilisers and improved seeds, as well as training to provide agricultural services such as sowing and irrigation to improve productivity and sustainability.

The family sector in Mozambique is responsible for the use of almost all the existing arable land, estimated at 36 million hectares, of which only 10 percent is in use. (macauhub/MZ)