FAO.org

Home > In Action > Projects > MAFAP > Country Analysis > Country dashboard

Mozambique

Select a country   

Policy Coherence

Sector development policies and strategies in Mozambique regard agriculture as the central economic activity of the country. The sector contributes almost 30 percent to national GDP and accounts for around 80 percent of employment, many of whom are poor subsistence farmers; hence, the fight against poverty is inextricably tied to the transformation and development of the agriculture sector.

MAFAP’s public expenditure analysis shows that agricultural public investments increased during 2009–2014, and were focused mainly on supporting producers through the provision or subsidization of inputs and credit, and the promotion of technology adoption to boost agricultural productivity. Investments in forestry and fishery projects and programmes have increased noticeably in the last period, generating positive implications for the economic performance of the two sub-sectors. These trends are consistent with the national policy strategies and frameworks, including the Five-year Government Plan, the Poverty Reduction Strategy and the Strategic Plan for Agricultural Sector Development 2011-2020 (PEDSA).

Despite this positive investment environment, MAFAP’s price incentive analysis for 2005-2013 indicates that the policy and market dynamics implicitly penalize producers of key food staples, in particular rice and cassava. High costs for storage, transport and marketing as well as the weak market information system are the main drivers of price disincentives to production. These constraints, coupled with the lack of commodity-specific interventions even for commodities that exhibit a long-standing productivity stagnation, such as rice, may pose some risks to the attainment of the food security objectives stated in the new National Agrarian Investment Plan 2013–2017 (PNISA).

Some commodities recognized by the PEDSA and PNISA as key priorities to exploit the agricultural export potential of the country (e.g. cashew nuts, cotton, soybeans and tobacco) still receive limited or ineffective public support. For example, MAFAP price analysis indicates that the minimum producer price policy on cotton did not translate into stable incentives to production. Trade restrictions on raw cashew nuts have created incentives for domestic processing and value addition, but the preferential buying policy of processors over exporters still restricts competition to the detriment of producers. The development of a policy monitoring system will help align policy interventions and investments with policy intentions and remove policy inconsistencies.

Agricultural Public Expenditure

Select an indicator:

For additional information on the indicators shown in the graphs and the terminology used, please refer to MAFAP’s Glossary on Public Expenditure and Methodological Guidelines - Volume II - Public Expenditure. For detailed information on the data provided, please go to the MAFAP database

 

Price Incentives for Agricultural Commodities

Select a specific commodity:
Select a commodity group:   

For additional information on the indicators shown in the graphs and the terminology used, please refer to MAFAP's Glossary on Price Incentives and Methodological Guidelines - Volume I - Price Incentives. For detailed information on the data provided, please go to the MAFAP database.