Agribusiness Value Chain Development Program

pipeline

In line with the new CPF for Mozambique (under development, 2026-2031), the proposed 10-year MPA will have the first 5-year P4R program to build institutional capacity for government to deliver the program and catalyze low hanging investments in agribusiness to improve jobs and food security. This Phase 1 will also help the government to develop the post 2030 successor government program which will eventually be financed through P4R as Phase 2 (remaining 5 years) of the MPA Program. The Program aims to strengthen selected agribusiness value chains with more potential to generate jobs and food security. The key principles to govern the program will include: (i) selectivity, based on prioritizing value chains with more potential to generate jobs and food security, (ii) market-oriented focus/private sector focus, as opposed to subsistence agriculture, (iii) policy reforms, and (iv) leveraging complimentary investments along strategic corridors – e.g. transport, water, energy including rural/urban linkages). In view of this, the Program will support the following three broad areas of interventions, to be defined at concept note level. First, improving sustainable productivity, commercialization and value addition – through supporting productive partnerships between farmers, agribusinesses and public sector; access to finance for armers and private sector; and digital innovations. The second strategic area is improving infrastructure and markets – including rural roads for connectivity with the corridors to enable market access (and rural/urban linkages), irrigation/water, and post-harvest facilities. Thirdly, policy reforms and enabling environment is critical to promote private sector participation and innovation. The overarching approach of leveraging economic corridors to develop agribusiness value chains will offer opportunities to integrate spatial planning, transport/water/logistics/energy investments and climate adaptation. IDA, IFC, and MIGA financing instruments will mobilize private capital to support agribusiness value chains, consistent with the Agri-Connect Initiative.