Supporting the Policy Environment for Economic Development

Agricultural competitiveness in light of the resource boom

Mozambique has consistently figured among the top ten African countries, ranked by economic growth rates, for over a decade. Prospects indicate that this growth pattern will be sustained in the coming years, fueled by the resource boom. How can this opportunity be capitalized upon so as not to jeopardize the livelihoods of 80% of the population who rely on the agriculture economy? What must Mozambique do now, to forestall the potential onset of what is commonly referred to as “Dutch disease,” that is, the shock to a country’s economy that can result from failure to properly manage the foreign exchange revenues generated by a natural resource boom?

To contribute to a better understanding of the potential impacts of resource boom on agriculture, SPEED prepared a study “Mozambique’s Natural Resource Boom - What Potential Impacts on Agriculture’s Competitiveness?”. The study commissioned by CTA, highlights the potential resilience or vulnerability of  the agriculture sector (looking at cotton, rice, soy, tomato and bananas value chains)  to possible Dutch disease pressures and review factors driving the competitiveness of five agricultural value chains in Mozambique. Although it  emphasis on cost analysis, other qualitative dimensions such as productivity or “innovation,” quality, agro-processing services, processed value-added, and risk management issues also were considered.  Read more below.

We have also prepared a series of info-graphics which present the findings of the report - they are below in PDF format, if you would like to use the individual images or know more, please contact us.

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