Quality warehouse storage is crucial for reducing post harvest losses due to insect and mold, which decrease farmer incomesThrough a Strategic Partnership Grant, USAID’s Southern Africa Trade Hub has partnered with the Export Trading Group (ETG) to help ETG establish a Warehouse Receipts System (WRS) on four selected warehouse sites in Mozambique. WRS enables farmers and medium-sized traders to store their grains securely, use the stored grain to leverage credit, and sell their crops later in the season when prices are generally higher. 

As of May 2015, warehouse receipts in Mozambique are now being issued online at the www.mozwarehouse.com gateway.

Objectives

  • ETG has established the Warehouse Receipts System at four warehouse sites in Mozambique. The WRS provides a platform for inward investment into structured trade in Mozambique and grants farmers access to credit for critical cash flows and inputs. As part of the grant, emerging grain traders are receiving training and access to finance, while registered farmers will participate in WRS through aggregation centers, associations, and farm clubs. An ETG warehouse location in Chimoio is also being upgraded through the grant to store up to 5,000 tons of grain when completed.

Beneficiaries

  • Grain traders received training and access to finance through warehouse receipts.
  • Farmers who will benefit from the WRS over time.

Results and Outcomes

  • The ETG warehouse location in Chimoio has been upgraded with an electronic weighbridge to make the process of receiving and offloading grain more efficient.
  • Training on the web-based Warehouse Receipts System platform was provided to warehouse managers in July 2015. Extension training is also being given in cooperation with international NGO CLUSA (Cooperative League of the USA) to encourage farmers and traders to make use of the system.
  • The Trade Hub went to Nampula in September 2015 to conduct live test demo workshops for stakeholders BOM Bank (Banco de Oportunidade de Mocambique), CLUSA, Technoserve, and others to expand and promote WRS to farmer groups and associations in Nampula and Zambezia provinces.

Photo: Quality warehouse storage is crucial for reducing post harvest losses due to insect and mold, which decrease farmer incomes

 

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