The Government is mobilizing around €429.2 million to boost agricultural production and strengthen the food value chain, with strong involvement from the private sector. The announcement was made this Thursday (28), during consultations with economic operators and financial institutions on financing and development of the agricultural sector.
The information was provided by the Permanent Secretary of the Ministry of Agriculture, Environment and Fisheries, Acubar Batista. The official advocated for the involvement of banks and insurance companies in strengthening national agricultural investment, considering these sectors essential for the success of the program.
“We are talking about €429.2 million, which will be implemented in two phases.” According to him, the first phase foresees the allocation of €214.6 million over the next five years.
The official added that the second phase of the program will also absorb €214.6 million. However, he clarified that the implementation period for this phase has not yet been defined.
According to Acubar Batista, the financing will cover the entire agricultural value chain, from production to commercialization. The program will prioritize staple food crops, in a strategy aimed at increasing food production in the country.
The Permanent Secretary also explained that the model will be guided by the needs of the private sector. According to him, the intention is to avoid non-viable investments and ensure greater sustainability of agricultural projects.
“Our main axis is the private sector (micro, small, medium, and large). We want it to be part of this process,” said Acubar Batista.
He also highlighted the role of banks and the insurance sector in agricultural development. For the government, access to agricultural credit depends on strengthening insurance mechanisms and creating greater predictability for producers and investors.
According to Acubar Batista, financial institutions and insurers have already shown openness to expanding support instruments for the agricultural sector. The executive considers this strategy essential to reduce risks, stimulate private investment, and increase food production in Mozambique.
Recently, the World Bank announced that it will provide around $500 million to finance the agricultural sector in Mozambique, as part of a plan aimed at boosting staple food production and strengthening livestock farming in the country.
