MOZAMBIQUE WORK PLAN
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1 MOZAMBIQUE WORK PLAN 2014
2 Mozambique Situation Analysis Strengths Weaknesses Opportunities Threats Approval of National Strategic Plan for the Development of the Agricultural Sector (CAADP) that focus on increased agricultural productivity Inexistence of a domestic fertilizer manufacturers Existence of reserves of raw materials for fertilizer industry (calcareous, hydrocarbons, Organic fertilizers, etc) Ongoing feasibility study for installation of Urea production complex Government has not approved yet a hydrocarbons quota for the fertilizer industry in short and medium term Approval of National Fertilizer Strategy and Regulation combined with establishment of the fertilizer regulatory body Absence of a Fertilizer association or platform Limited capacity at the regulatory body AFAP may play an important role to establish the fertilizer platform as a dialogue mechanism; build capacity of the regulatory body for: registrations, inspection, quality control, etc. Misinterpretation of the regulation may endanger de development of the fertilizer supply chain
3 Mozambique Situation Analysis (cont) Strengths Weaknesses Opportunities Threats Increased production of food and cash crops, and emergence of new crops that require additional use of fertilizers Existence of capacity at the ISPM for soil analysis and fertilizer recommendations Existence of agro dealer development programs The MOA and donors are willing to invest in the fertilizer sector Low demand and fertilizer usage Low return on farmers investment due to abusive use of 12:24:12 Limited wholesale and retail network Lack of reliable Program Implementers ProSavana/Nacala/ADVZ/BAGC and Limpopo development Corridors with social protection/involvement balanced with private sector investment on agriculture and infrastructure may increase the demand AFAP to engage ISPM for soil analysis and recommendation of appropriate blends combined with demand creation activities with NGOs/suppliers/distributors, farmers groups and other actors Willingness of local and external private sector in investing on a fertilizer supply chain AFAP is in position to become the leading implementer of Gov & Donors strategies on fertilizer related issues Low demand for fertilizers turns the business unattractive in the rural areas Low return on fertilizer investment may discourage farmers
4 Expand Fertilizer Supply Capacity Submitting, signing and implementing technical assistance and business plan development APCs for two new blenders (in Namialo and Namacurra) aiming to enter the Mozambican Fertilizer Market; Target Blenders include: Campo Fertil Lda AGEMA Lda & Paul Makepeace Feb to May 2014 Developing, submitting, signing and implementing at least one APC for new blending plant finance Signing, Implementing and monitoring the APC regarding equipment acquisition for development of specific fertilizer blending packages for smallholder farmers. Target Blender: AGEMA Lda / Africa Fertil Target fertilizer blender: Greenbelt (blender) & Paul Makepeace & Paul Makepeace Jun to Dec 2014 Feb to Jun 2014 Continuing implementing and monitoring APCs for fertilizer distribution guaranty and supply payment guaranty. Target supplier / distributor: MOZFERT SAVAL SCRL & Beira Corridor Coordinator Developing, submitting, signing, implementing and monitoring APCs for fertilizer distribution and supply payment guaranty. Continue identifying potential fertilizer blenders and suppliers willing to partnering with AFAP to increase Target distributors/suppliers : Africa Fertilizer Lda ETC Adubos Lda Greenbelt Lda OMNIA and MOZFERT Target players to be identified, Nacala & Beira Corridor Coordinators
5 Expand Fertilizer Supply Capacity (cont) Developing, signing, implementing and monitoring Target importers & distributors and APCs with importers & distributors aiming to include: HQ increase their capacity to import, store and supply Agrifocus fertilizers to hub agro-dealers in districts and Agro Global / TECAP villages. NULANDIS and Entreposto Continue monitoring the implementation of APCs regarding construction of fertilizer warehouses with Hub dealers in the districts. Target Hub agro-dealers: Dengo Comercial Lda IAV Lda Matuel Comercial Lda Manica Mbeu Lda CADECO Lda & Field Coordinators Implementing and monitoring APCs with Hub agrodealers aiming to increase fertilizer storage and supply capacity in the villages. Target Hub agro-dealers: Nzara Yapera Lda/Dengo/IAV/ Morais/ECA Lda/Matuel/ACOF ACOF Lda/ Manica Mbeu, etc.. & Field Coordinators Complete, submit, sign, implement and monitoring APCs for matching investment support for fertilizer storage facilities with Hub dealers in the districts Agro Industrias / Morais C. Lda SAMACHA C. Lda / Zacarias Lda Nhamazi C. Lda / Bonifacio Lda Mbatilamukene Lda Zabwino Z. Lda / ORWERA Lda; and OSSUKANA Lda & Field Coordinators
6 Expand Fertilizer Supply Capacity (cont) Developing, signing, implementing and monitoring APCs for out grower fertilizer finance. Target out growers schemes: Corredor Agro /Rei do Agro RBL / Africa Century Lda Hoyo Hoyo Lda / ECA Lda & Field Coordinators Building capacity of local institutions to implement agro dealer development programs and establish partnerships with new programs HUB/MADEP AGRIMERC/MADD II Zambezi Valley Development Agency (ADVZ) and ProSavana / PROSUL AGMARK & Sergio Ussaca Developing capacity of wholesalers to increase distribution of fertilizer to rural agro-dealers and by extension small holder farmers (continue organizing regional meetings with Hub agro-dealers to advance the concept and APC & Linkage meetings between Hub agro-dealers; fertilizer suppliers and downstream rural agro-dealers) HUB/MADEP AGRIMERC/MADD ADVZ / ProSavana Hub Agro-dealers Fertilizer suppliers Farmers organizations Traders AGMARK and Data collection and analysis to Demonstrate impact of AFAP interventions. & Filed Coordinators and AGMARK
7 Increase Finance in the Fertilizer Distribution Channels Developing and singing Guaranty agreements Standard Bank for provision of commercial financed to Millennium BIM importers, blenders and distributors willing to BCI Fomento increase their capacity to import, store, Barclays blend, granulate and supply fertilizers to Banco Terra smallholder farmers at affordable cost Banco Único Leverage additional resources for fertilizer credit lines for smallholders affiliated to out grower and irrigation schemes Opportunity Bank OIKO Credit ProCredit Bank CPL GAPI Feb to Dec 201
8 Strengthen Smallholder Farmer Demand for Fertilizer Developing, signing, implementing and monitoring APCs for fertilizer demand creation activities (demo plots) with NGOs, out grower schemes and farmers associations/coops, including soil analysis for recommendation of appropriate fertilizer blends for specific food crops, demo plots, etc. AGRA-Soil Health Program ISPM, IIAM, ISPG, UniZambeze, UniLurio, etc IFDC / INOVAGRO/TechnoServe MADEP / MADII/ HICEP/ Concern BAGC/ProSavana/ADVZ/FAO CLUSA/PROMAC and other NGOs Out Grower Schemes, and Farmers associations and coops & Field Coordinators Continue partnering with fertilizer suppliers for provision of free of charge fertilizers for demonstration plots for demand creation activities. MOZFERT Greenbelt, ETC Adubos, OMNIA, Africa fertilizers Lda & Filed Coordinators
9 Improve Market Transparency and Enable Environment for Development of Fertilizer Value Chain Signing MOU and implementing Ministry of Agriculture Jul to Dec 2014 activities planned under MOU the between AFAP and MINAG, including: National Directorate for Agrarian Services Fertilizer Regulatory Body Signing MOU with ISPM and finance the acquisition of equipment for soil and fertilizer micronutrient analysis; National Directorate for Extension Services Manica Polytechnic Institute (ISPM) Training of fertilizer lab technicians, Inspectors and extension agents through AFAP Volunteer program; AFAP Volunteer Program (AFVP) Jul to Dec 2014 Establish the Mozambican Fertilizer dialogue platform as the first step for creation of the Fertilizer association and contribute for implementation of Gov. Fertilizer Strategic Plan; Continue acting as the leading entity on fertilizer issues. Fertilizer Stakeholders in general Ministry of Agriculture AgRED Group Soil Health Node CountryStat & Carlos Z. Jul to Dec 2014 Feb to Dec 2014
10 Leverage Additional Funding for AFAP Program in Mozambique Discuss with key donors with agribusiness portfolios to leverage additional resources for AFAP program in Mozambique. MOA, AGRA, USAID, DFID, WB/IFC, Dutch Embassy, JICA, KOIKA, EU, FAO, AgRED members and multinationals with CSR policies s Discuss with key donors with agribusiness portfolios to leverage resources for materialization of fertilizer platform action plan. MOA, AGRA, USAID, DFID, WB/IFC, Dutch Embassy, JICA, KOIKA, EU, FAO, AgRED members and multinationals with CSR policies s July to Dec 2014
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