The Instituto do Algodão e Oleaginosas de Moçambique (IAOM), under the Ministry of Agriculture, Environment and Fisheries, on Thursday, 3 July, presented its new agro-industrial development strategy at the 61st edition of the Maputo International Trade Fair (FACIM 2026), centred on modernising agricultural production and improving the profitability of smallholder and medium-scale farmers.
The initiative comes as the cotton and oilseed value chains in the country remain fragmented, with only the production and primary processing segments partially developed. The strategy is designed to address the principal structural constraints that continue to limit growth across the productive sector.
Among the key constraints identified are weak access to inputs, limited land preparation capacity, and the absence of a systematic supply of certified seeds. The mechanism also seeks to reduce the export of raw materials — a consequence of insufficient local industrialisation of products and by-products — by strengthening domestic production and processing capacity.
The emphasis on local processing comes against the backdrop of a broader effort to revive cotton output. The government aims to raise national production from the current 20,000 tonnes to 60,000 tonnes per year through a new regulatory framework for the sector.
To achieve these objectives, the strategy rests on four financial pillars, encompassing support for the distribution of production inputs and large-scale agricultural mechanisation. Input credit for the current year will be managed by the Gabinete de Apoio à Pequena Indústria (GAPI), with financing for equipment, seeds, and local processing expected to follow from 2027.
On the equipment side, the strategy establishes an interest rate of up to 5% for emerging producers, covering integrated packages of tractors and ploughs, alongside input credit of 70,000 meticais. Implementation will involve the IAOM, the Fórum Nacional dos Produtores do Algodão (FONPA), GAPI, and private sector promotion companies.
GAPI will be responsible for financial management, fund disbursement, expenditure oversight, and accountability, while private firms will handle distribution, technical assistance, and the purchase of the final product. Beneficiaries will be required to hold active FONPA membership and will access rates of 0% within an established promotion network and 5% outside one. The strategy also sets a target of ensuring that 30% of beneficiaries are women.
On the technical side, each producer is expected to cultivate 1.5 hectares using intercropping models. Each input kit is valued at approximately 11,000 meticais and includes certified seeds, pesticides, herbicides, fertilisers, and protective equipment. The model combines cotton, sesame, or sunflower with beans or soya and maize.
Under the commercial component, producers will be required to sell their entire output to designated promotion companies. The IAOM will be tasked with facilitating market linkages, ensuring effective oversight of the commercialisation process, and preventing the direct or indirect involvement of unauthorised intermediaries.
By 2029, the strategy envisages reaching 50,000 producers and cultivating more than 40,000 hectares through mechanisation. In the short to medium term, plans also include the digital registration of 10,000 producers and the integration of six modules into a dedicated digital platform.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/03/negocios/agronegocios/facim-2026-iaom-apresenta-nova-estrategia-para-aumentar-producao-de-algodao-e-oleaginosas/
