SREP Food Security Additional Financing

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The Sustainable Rural Economy Program (SREP) is an MPA of 3 phases for a total envelope of $500M with an overall Program Objectiveof increasing the resilience of targeted rural areas and producers. The first phase is an IPF of $150M, the second phase is a P4Rof$150M, and the third phase another P4R of $200M. The current PAD and ESRS were prepared for the purposes of Phase I which willcover 6 Provinces and focus on productive sectors in rural areas, including agriculture, livestock and fisheries. Phase I is aUS$ 150 million IDA IPF Grant, focusing on the following main objectives: (i) increasing agriculture productivity and market accessby targeted smallholders, (ii) increasing value added by targeted AgriMSMEs, and (iii) improving natural resources managementpractices in selected regions. This first phase will cover a period of 5 years and be focused on building institutional capacityfor delivering key services and support to smallholders and AgriMSMEs, while also improving the stewardship over natural resourcesin the targeted rural areas.The proposed US$ 54 million Additional Financing aims at introducing a new Improving FNS component(US$35.7 million) which will have three new subcomponents. (a) New Subcomponent 5.1: Small infrastructure (US$10.80 million)which will finance the following: (i) Rehabilitation of irrigation schemes (US$1.64 million). The rehabilitation of three smallirrigation schemes that were badly damaged by the cyclones in Zambezia (US$1.62 million). The three schemes are located in thedistricts of Nicoadala and Maganja da Costa and total about 860 ha, which are all farmed by smallholders.(ii) Rehabilitation ofrural roads (US$4.75 million). This is the rehabilitation of selected market access rural roads which are key for producers andother actors to boost the development of value chains but which have been badly damaged by the cyclones. As already foreseen inSREP, the activities foreseen in the AF are localized interventions, specifically the rehabilitation of critical elementson selected rural roads and supervision of the execution of the referred works. This work will be led by FNDS in coordination withthe National Roads Administration (Administração Nacional de Estradas, ANE) on the basis of a memorandum of understanding alreadyin place.(iii) Construction/installation of boreholes and water tanks (US$4.41 million). To improve access to water supply indistricts in semiarid zones and districts with systems damaged by weather events, multipurpose boreholes will be built togetherwith water tanks and public fountains mainly for drinking and sanitation purposes but potentially also for limited (drip fororchards) irrigation use. The pre-molded cisterns are expected to have a capacity of 10,000 m³ and be capable of accumulating andconserving rainwater and be located mainly in the proximity of schools and health centers.New Subcomponent 5.2: Support to smallfarmers and livestock breeders (US$22 million). This subcomponent will finance the following: (i) Provision of agriculturalkits/seeds (US$15.09 million). The AF will provide agricultural input kits (available for free) to selected beneficiaries inemergency conditions in the selected 53 districts following the ‘fomento directo’ approach. The same rules which were adopted andregistered in the operations manual in MozNorte to support the farming communities in need will be used. No large pieces ofequipment (with the exception of small equipment, see point iii) will be provided, while it is expected to make wide use ofnutritious and drought-tolerant crops to increase households’ resilience to climate shocks.(ii) Provision of hermetic bags,installation of family silos (US$1.81 million). Most family farmers do not have a drying and storage structure for grains andbeans, having to pay a high price, or sell the produce and buy it later, to meet the family’s needs. The AF plans to make hermeticbags and small family silos available, in the form of a donation, to conserve the food reserve and reduce post-harvest losses.(iii) Provision of small equipment/tools (US$0.72 million). Most family farmers do not have proper tools to farm such as spades,groundnut rakes, hay pitchforks, and cutters, besides galoshes and gloves. The AF plans to make those available for free to allowmore effective use of farmers’ time, improve the quality of production, and reduce losses.(iv) Building of small livestockinfrastructure (US$2.94 million). Within the area affected by Tropical Storm Ana, several districts in four provinces (mainlyZambezia, Tete, Nampula, and Manica) are currently experiencing problems linked to livestock both in terms of lost units anddestroyed small livestock infrastructure and potential outbreak of diseases, which would need to be detected and cured on time (seebelow). A total of 527 installations (fences, hog houses, poultry houses, and so on) of small breeders were destroyed (plus severalthousand at the household level) and need to be rebuilt by using stronger materials and more resilient techniques.(v) Provision ofequipment for the veterinary lab in Tete (US$0.44 million). The lab is currently not functioning and hampers the possibility forsmall breeders to sell their product in the market and to the new abattoir. (vi) Provision of diagnostic consumables to theveterinary service in Nampula (US$0.16 million). The veterinary service in Nampula was weakened by the cyclones and does not havesufficient consumables to run diagnostics and handle potential outbreak of diseases. (vii) Establishment of a small ruminantscheme (US$0.84 million). The scheme will be implemented in four districts, which still need to be selected. The allocation ofgoats (four females and one male) and specific training to households aim to promote animal health, improve family income, andimprove food availability and nutrition outcomes. The animals will be delivered on a rotational basis to households to ensure thatthe greatest number of families in the communities are reached. The household that receives the first batch of five animals has theobligation to return two offspring to another family within one year. The delivery process of successive lambs will be accompaniedby the local District Service of Economic Activity (Serviços Distritais de Actividade Economica, SDAE) offices. The project mustensure that 50 percent of the animals distributed will be provided to families that currently have no ruminants.C- NewSubcomponent 5.3: Implementing a local approach to improve nutrition (US$2.90 million). This subcomponent will finance thefollowing:(i) Training in utilization of local products for enhanced nutrition security (US$1.19 million). This is a training oftrainers’ activity that is focused on educating households on what should be included in a balanced diet and uses the existinglocal agricultural produce. It will be implemented by SDAE extensionists and Community Health Workers or (Agentes PolivalenteElementar de Saude - APEs) and is aimed at teaching how farmers could produce, in the yard or on the plot, for example, producewhich would be healthy but is not easily available in the market (or available in markets that are too distant), and will alsoprovide advice on how forestry products and/or meat and/or fish could be integrated in farmers’ diet. The list of products couldalso include those that are mostly directed to export but have high nutrition content. A module on officinal plants and herbs willalso be developed and taught. (ii) Mobile nutrition kitchens (US$1.71 million). The experience of past and ongoing successfulprojects in several part of the world show that mobile kitchens are a means of communication capable of inducing behavioral change.In this case, it is proposed to support the activities of the 60 nutritionists already trained by the United Nations Children'sFund (UNICEF) (staff from the Ministry of Health, SETSAN, and INGC) and provide them with the means to travel in the selecteddistricts and