Government policy and institutions help farmers and agribusinesses to be more productive and efficient
Agriculture value chains contribute 24 percent of Mozambique’s gross domestic product (GDP) and employ about 80 percent of the active labor force in the country. Approximately 85 percent of the cultivated land is being used by smallholder farmers. Despite potential competitive advantages in climate, seasonality, and proximity to large markets, agriculture in Mozambique remains predominantly subsistence with rudimentary practices and technologies, resulting in low levels of production and productivity, low competitiveness, and limited access to markets due to inefficient services and infrastructure. Despite its potential, the country still has a deficit in terms of production of basic food items. There are many development projects and government efforts to improve agricultural production, but policy, regulatory, and institutional barriers to increased competitiveness require additional technical expertise. USAID SPEED will offer technical assistance to public and private sector actors to identify and address policy and regulatory obstacles to improving competitiveness of Mozambique’s agricultural value chains.