US$8.5 million invested in modernizing agricultural practice in Mozambique

Modernizing agriculture and food security are at the top of Gapi’s development priorities.   In 2017 Gapi managed investments exceeding US$8.5 Million (500 Million Meticais) in this sector.  By well-crafted and timely investments, supported by technical assistance and extension services, Gapi has enabled 300 small agri-businesses in 80 districts of the country to significantly expand yields.

Commenting on the overall impact of these interventions, Gapi’s CEO, Mr. Antonio Souto says:  

“By helping agribusiness along the value chains to modernize we’ve seen yields and food security improve. We are witnessing how household income has improved not only by primary producers but also within producer organizations and rural agro-traders,  Its particularly satisfying to see the beneficial impact of the modernization program on the lives of women and young people” … concluded Mr. Souto.

Gapi’s AGRO-INVESTE programme, financed by DANIDA, is at the forefront of the agricultural modernization in rural Mozambique. Equally important in fostering this agricultural transformation is Gapi’s partnership with PROMER and PROSUL,  financed by IFAD,  in  close collaborative agreements with government agencies such as Ministry of Agriculture and Food Security (MASA) and Ministry of Land Environment and Rural Development (MITADER).  Additionally, Gapi works closely with SME development supported by the Netherlands Embassy in the Zambeze Valley, ​​ BADEA’s support for SMEs in the northern region and the entrepreneurship promotion program in the Beira corridor assisted by the African Development Bank  (AfDB) and the Ministry of Gender, Child and Social Action. Gapi’s intervention strategy consistently combines financial services, with training and business consulting and institutional development. These are the main success features of AGRO-INVESTE that was conceived of and structured  by Gapi.  Recognizing the success of Gapi’s initiatives,  DANIDA has recently decided to extend and strengthen funding for components of this programme which benefit small businesses, entrepreneurship amongst youth and women, and rural access to finance. Going forward, Gapi is creating a network of microbanks, rural savings banks, savings and loans organizations to greater diversify rural financial inclusion. Souto, emphatically believes that:  “supporting these institutions inevitably contributes to increased financial mobility and the ability to do business right along the value chain.  .”
“When we address the issue of agricultural modernization,  technology plays a crucial role.  Where appropriate Gapi has invested in new processing technology and machinery allowing for greater overall  efficiency ” – explained Souto.  Technology and machinery investments have been made at Sussungenda and Gondola in Manica province; Gorongosa in Sofala province; Nicoadala, in Zambézia province; Tsangano in Tete province and Magude in Maputo province. Gapi has facilitated the creation of cooperatives and/or producer associations helping to overcome challenges of market access. Illustrative of this is the example of IKURU in Nampula province, created by Gapi, in partnership with primary agricultural producer associations. 

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