Agricultural Input and Output Market Development in Mozambique: Challenges and Opportunities
- Fundação RESET
- Mar 2
- 2 min read
Mozambique’s agriculture sector is the backbone of the economy, employing 80% of the population and contributing 25% of GDP. However, low productivity, poor infrastructure, and climate shocks have limited its potential. The agricultural input market, including seeds, fertilizers, and pesticides, remains underdeveloped, with only 5% of small-scale farmers using improved seeds and 4-5% applying fertilizers. The country is highly dependent on imported agricultural inputs, leading to high costs and limited accessibility for rural farmers. The informal seed market plays a dominant role, with most farmers relying on retained seeds or seed exchanges rather than commercial suppliers.
Key Findings
The agricultural output market has evolved over time but faces significant constraints. The civil war (1977-1992) and extreme weather events (droughts, floods, and cyclones) have caused major disruptions, leading to market inefficiencies and food insecurity. Trade liberalization post-war helped expand grain markets, but poor transport infrastructure, weak value chains, and fluctuating food prices continue to restrict market growth. Mozambique imports significant volumes of food, while smallholder farmers struggle to access larger markets due to high transaction costs, limited credit access, and inadequate storage facilities. The report also highlights the rise of input trade fairs and seed voucher programs as potential solutions to improve input accessibility.
Despite these challenges, public-private partnerships and government policies have attempted to strengthen the sector. Initiatives such as PROAGRI, input subsidies, the National Seed Program, and the Food Production Action Plan (FPAP) have aimed to support smallholder farmers. However, implementation gaps, policy inconsistencies, and weak financial support mechanisms have hindered their effectiveness. Moving forward, Mozambique must invest in market-oriented reforms, infrastructure development, and innovative financing models to increase productivity, strengthen market linkages, and ensure food security.
The Bibliography source:
RESET Foundation is committed with the The Sustainable Development Goals (SDGs). The Agricultural Input and Output Market Development in Mozambique linked to several SDGs:
The SDG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
