Mozambique Country Profile

The overall goal of the United States (Agency for International Development (USAID) Southern Africa Trade Hub (SATH) is to increase international competitiveness, intra-regional trade and food security in the Southern Africa region. With a team of long term regional and international experts based in Gaborone, Botswana, SATH delivers targeted technical assistance to governments, the private sector and civil society organizations in support of advancing regional integration and increasing the trade capacity of selected value chains within Southern Africa.

While the majority of SATH's activities are regional in nature, some activities specifically target Mozambique as a direct beneficiary. Through various regional and cross-cutting initiatives, SATH is working with Mozambique specifically within the context of regional agricultural value chain initiatives and trade facilitation programs. Additionally, Mozambique stands to benefit from SATH's support for regional integration through the Southern Africa Development Community (SADC).

Coordinated Border Management (CBM): Efficient border management requires effective coordination between all relevant government agencies including customs and private sector agents involved in cross border trade. The CBM program aims to reduce border crossing times and costs through the establishment of public-private joint border committees and action plans to address delays. The program in particular targets the Feed the Future (FTF) countries of Malawi, Zambia and Mozambique. SATH is currently implementing this program at the Mwanza/Zobwe border between Malawi and Mozambique. During 2012, SATH will roll CBM initiatives, including a border operations assessment and the establishment of a joint border committee, out to the Lebombo/Ressano Garcia border along the Coast to Coast Corridor (C2C).

Ports Efficiency Improvement Program: As a FTF country, improvements at Mozambique's ports are central to increasing food security in the SADC region. The Ports Efficiency Improvement program is examining and addressing the causes of the poor performance at the Nacala and Beira ports. As a starting point, SATH is partnering with the USAID AgriFUTURO project to jointly implement an analysis of the Beira corridor. This analysis will assess and quantify implications of improvements to corridor performance within the agricultural sectors in Mozambique and neighboring countries.

Corridor Management Institutions (CMIs): Experience has demonstrated that corridors with CMIs are able to effectively monitor corridor performance and address non-tariff barriers (NTBs) along the corridor in a proactive manner. SATH will provide technical input for the development of CMIs on the Beira and Nacala Corridors, which serve our FTF focus countries.

NAMPO Harvest Day: SATH works with local service providers in Mozambique to promote participation at the NAMPO Agricultural Harvest Show in South Africa. Mozambican producers' attendance of the biggest agricultural trade show in Southern Africa alongside counterparts from neighboring countries promotes trade and technology interchange within the region.

Buyer/Seller Missions – Value Chains: In 2012, SATH will undertake a buyer/seller mission to Mozambique which will include seed and other input suppliers as well as commodity buyers. The seed suppliers will be able to explore new markets for their seed as well as respond to variety demands from the commodity buyers. The buyers will identify sources for specific products and will be introduced to commercial producers, smallholder producer organizations and traders with the capacity to supply produce. This mission is a follow up to 2011's successful mission to Mozambique which aimed to facilitate new technology adoption and trade in the legume sector. The 2011 mission resulted in more than 100mega tons increased seed trade, a contract for 2,000 hectares of groundnut supply and preliminary arrangements for investment in groundnut processing in Beira.

Introduction of Genetically Modified (GM) and Conventional Certified Cottonseed through Partnership with National Farming Unions: SATH is working with regional seed suppliers to help them re-introduce conventional hybrid seed through the Mozambican Cotton Institute (IAM) and to negotiate a partnership agreement with Monsanto that will enable confined trials of GM cottonseed.

Aflatoxin Mitigation – A Value Chain Approach: Through our partnership with Twin Trade, a UK-based "fair trade" organization and groundnut importer, SATH has analyzed and developed recommendations for the most cost-effective, currently available means to reduce aflatoxin contamination in the supply chain. SATH will partner with the national farming unions – including Mozambique – to disseminate these recommendations and support implementation.

Partnership with Grain South Africa (SA) and affiliated organizations to address informational constraints in the SADC region: Grain SA is the preeminent grain producers' organization in South Africa and, together with affiliated organizations, provides a full range of services to grain farmers in South Africa. SATH is working with Grain SA and its affiliated organizations to extend the services of Grain SA to focus on key production areas in Zambia and Mozambique.

Clean Energy Investment Promotion: As part of our work on clean energy investment promotion, SATH is working with solar energy companies in Mozambique, in addition to other regional clean energy producers, to participate in the Solar Power International Conference in September 2012. The aim of this mission is to expose the companies to international best practice in solar energy as well as provide access to United States (US) technology. This mission will also provide opportunities for possible Joint Venture Partnerships with US companies interested in investing in Africa.

Textile and Apparel Investment Promotion: SATH is currently completing an opportunity analysis for the garment and textile sector in Mozambique which will then be used to help attract additional value chain investments. For Mozambique, the target will be to partner with IAM, the Ministry of Trade and Industry and the Mozambique Investment Promotion Center to attract additional value chain investments. Mozambique firms will also benefit from SATH's regional activities in this sector, including participation in the "SOURCE Africa 2013" trade show, which will bring together regional producers and both regional and international buyers.