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» 19.04.2010 - Mozambique records highest cashew crop in 3 years
» 26.03.2010 - Mozambique strengthen ties with Viet Nam
» 01.03.2010 - Mozambique to carry out agric census to gauge poverty
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» 08.10.2009 - Environmentalists condemn Mozambique's planned damming of Zambezi
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» 28.03.2007 - Mozambique aims to lead "green revolution"

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Agriculture - Nutrition | Economy - Development

US$31.1m loan to Mozambican farmers

afrol News, 18 September - International Fund for Agriculture and Development (IFAD) has granted a US$31.1 million loan to Mozambique to enable small-scale farmers in southern African state to increase their incomes by marketing their surpluses more profitably.

According to IFAD, inefficient rural and agricultural markets seriously affect livelihoods of majority of rural population in northern Mozambique.

A press statement released yesterday by body indicates that, "because of poor returns from surplus sales, smallholders adopt low-risk strategies, resulting in some of the lowest yields in southern Africa."

It states that programme would improve terms of trade for smallholders, providing them with incentives to move out of semi-subsistence agriculture, adding that it would support 20 000 farmers in some 670 farmers' associations and 375 small-scale traders.

Programme has been designed to encourage poorer members of community to participate, statement also added.

"Smallholders will be able to market their surpluses more profitably, thereby increasing income. Access to and participation in agricultural markets and value chains will be improved and efficient market intermediaries and effective partnerships will be established, stimulating increases in agricultural production," IFAD said.

Since its formation in 1978, IFAD has provided $143.9 million in loans to nine programmes and projects in Mozambique.

Two thirds of Mozambique's 20 million people live below poverty line, according to World Bank statistics.

IFAD is an international financial institution and a specialised UN agency. It is a global partnership of OECD, OPEC and other developing countries. Today, IFAD supports more than 200 programmes and projects in 85 developing countries.

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