Feed the Future
This project is part of the U.S. Government's global hunger and food security initiative.

Mozambique Rural Financial Services Study

Organization(s): 
ACDI/VOCA
Author(s): 
Olaf Kula
Elisabeth Farmer
Institutional Sponsor: 
United States Agency for International Development
Publication date: 
Friday, October 1, 2004

In April 2004, a two-person team from ACDI/VOCA traveled to Chimoio in the Manica Province of Mozambique to conduct an assessment of rural financial services in the Beira Corridor through value chain analysis.This resulting study had a two-fold purpose.

The more immediate purpose was to provide the USAID/Mozambique Mission with a set of strategic options to increase private sector investment in the dynamic agribusiness cluster. In order to formulate these options, the study set out to accomplish the following:

  • Identify factors critical to increasing industry competitiveness;
  • Assess the potential for increased incomes and growth by firms at all levels in the selected value chains;
  • Assess the degree to which private sector investment in the cluster is constrained by a lack of financial service access; and
  • Identify service, product and institutional options for responding to constraints.

Ultimately, however, the greater purpose of this study was to test a rapid assessment approach for the identification of financial services and product and institutional gaps, based on the identification of key opportunities and constraints to growth in important value chains and clusters.

This assessment found that there is enormous potential for growth in incomes and trade (transactions) through investment in horticulture and oilseeds; increased investment in the horticulture and oilseed value chains is transforming smallholder agriculture and generating significant increases in income for smallholder farmers.