The Mozambique Chamber of Commerce advocates the creation of an agricultural guarantee fund as a way of boosting agriculture and, in particular, the maize value chain in Mozambique.
The idea was recently presented by the Chamber’s representative, Manuela Mendes, during a seminar held under the theme “Ecosystem of the Maize Value Chain in Mozambique.
On the occasion, according to Mozambican daily newspaper Jornal Notícias, Mendes also called for greater dialogue between the main players in the value chain, highlighting that this is the condition for the agricultural industry to play a major role in the country’s development.
According to Mendes, reflection and advocacy is needed to take urgent measures to boost agricultural activity and attract the financial sector to this area, which will allow the land to be valued as an asset that can serve as a guarantee, since the banking sector is hesitant to grant credit to the sector because it is allegedly high risk.
“The State, here represented by the Mozambican Grains Institute (ICM) and other government entities in the province, should take responsibility for taking the lead in creating an agricultural guarantee fund and encouraging insurance institutions to cover the risks associated to the agricultural sector,” she said.
The representative also added that it was urgent to create fiscal policies and strategies to encourage agriculture, throughout its value chain, in order to boost the sector.
“When maize was chosen as the theme of the seminar we took into account its importance in the diet of Mozambicans and the need to promote its production on a large scale,” she said.
For the speaker, it is necessary to take into account that this cereal constitutes raw material for various industries and due to its potential on the market, it is important to recognise that in this province maize does not only serve as a food base for the population.
“It is also an asset for family income, hence the need for the development of actions and policies to enhance its entire value chain, although agriculture absorbs 80 per cent of the economically active population in the country and contributes 23 per cent in the Gross Domestic Product (GDP), the credit trend for the development of this sector is still not satisfactory,” he concluded.
