Formulation of Agricultural Development Master Plan in

the Nacala Corridor

CONCEPT NOTE

1. Purpose of Agricultural Development Master Plan of ProSAVANA 2. Outline of Target Area 3. Present Conditions and Issues 4. Zoning 5. Direction of Agricultural Development 6. Roles and Benefits of Key Actors in the Master Plan Implementation 7. Social and Environmental Consideration

Annex.1 Opinions and requests expressed in the district-level meetings

and their feedback Annex.2 Prospect of Population, Planted Area and Agricultural Production Annex.3 Project Components of ProSAVANA- PI & ProSAVANA-PEM

September, 2013

ProSAVANA-PD

Purpose of the Concept Note The Concept Note is prepared for discussion among stakeholders of the Nacala Corridor upon the understandings of the present condition and the direction of agricultural development, based on views of ProSAVANA-PD Study Team. The team consists of professional staff from Ministry of Agriculture of Mozambique and experts dispatched by the triangular cooperation program between Mozambique, Japan and Brazil upon request of the Government of Mozambique It shall be noted that the Concept Note is not a summary of a master plan. The contents of the Concept Note are open for the discussion in order to involve stakeholders in a deeper level in the process of formulation of the master plan.

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1. Purpose of Agricultural Development Mater Plan of ProSAVANA

ProSAVANA is a triangular co-operation program for Agricultural Development of the Tropical Savannah

in Mozambique (ProSAVANA). The Mozambican Government formulated “the Strategic Plan for the

Agricultural Sector Development: 2011-2020 (PEDSA)” as a national agricultural development strategy,

which shall be considered as a basis for formulating development plans in the agricultural sector. The

ProSAVANA is aligned with the vision and objectives of PEDSA. The vision, mission and objectives of

the ProSAVANA are shown below.

Vision

Improve the livelihood of inhabitants of the Nacala Corridor through inclusive and sustainable agricultural

and regional development.

Missions

(1) Improve and modernize agriculture to increase productivity and production, and diversify

agricultural production.

(2) Create employment through agricultural investment and establishment of a supply chain.

Objective

Create new agricultural development models, taking into account the natural environment and

socio-economic aspects and seeking market-oriented agricultural/rural/regional development with a

competitive edge.

ProSAVANA aims at improving the livelihood of inhabitants of the Nacala Corridor through increase of

their household income, by promoting agricultural and regional development with a sustainable nature from

the aspects of natural resources and socio-economy. In this regard ProSAVANA targets all categories of

agricultural producers working in the area, by the scale of farming, i.e., small-scale farmer, medium-scale

farmer and large-scale farm, by the type of farm management, i.e., individual farmer, farmer’s organization

and corporate farm, and by gender.

Small-scale farmers, which make up the majority of regional farmers and farms, rely on subsistence

agriculture and they are strictly limited in access to off-farm income as well. Most local inhabitants live

under the circumstance of limited economic interaction with outside.

In order to distribute the fruits of the recent economic growth of the country, that has had relatively

satisfactory performance, to the rural area, it is required to establish a system to circulate the increased

wealth under the economic growth from urban areas to rural areas. It is considered that the basis of poverty

reduction and improving the livelihood of farmers is that the productivity of major agricultural products is

improved and an efficient distribution network of products to urban areas is established.

In order to translate the above vision into reality, ProSAVANA defined its mission as being to increase

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productivity and to increase and diversify agricultural production as well as to create employment. More

specifically, it aims to increase and stabilize the farmers’ profit through increase of productivity of

agricultural products by improving agricultural technology, increase of production by both vertical and

horizontal expansion, and diversification of agricultural production by combination of food crops and cash

crops.

At the same time, it aims to maximize the effect of increased agricultural products to increase farmers’

income through generating added value to products by securing the market, improving the distribution

network and developing agro-processing in the area. Furthermore, during the effort to increase agricultural

products and generate added value, it is expected to create employment in the area as a result of promoting

the growth of relevant economic activity and the development of various agri-businesses, such as a supply

chain and services related to agricultural production, distribution of agricultural products and the

processing industry.

As for practical consideration of the missions, it is required to secure the sustainability of regional

agriculture through appropriate use of natural resources and farm land in consideration of the natural and

socio-economic environment, as well as to give maximum consideration to protecting the rights of local

inhabitants for use of those resources.

The ProSAVANA encompasses three projects1.

� ProSAVANA PI: Project for Improving Research and Technology Transfer Capacity for Nacala

Corridor Agriculture Development, Mozambique.

� ProSAVANA PD: Project for Support of the Agriculture Development Master Plan for Nacala

Corridor in Mozambique.

� ProSAVANA-PEM: Project for Establishment of Development Model at Communities’ Level with

Improvement of Rural Extension Service under Nacala Corridor Agriculture Development in

Mozambique.

The purpose of the ProSAVANA-PD is to formulate the agricultural development master plan in the Nacala

Corridor (M/P). The M/P determines the measures and necessary activities for improving and modernizing

the regional agriculture, generating added value to agricultural products and promoting various economic

activities relevant to agriculture. The direction and future vision indicated by the M/P is expected to be the

basis to create new agricultural development models, taking into account the natural environment and

social economic aspects and seeking market-oriented agriculture with a competitive edge.

1 Project components of ProSAVANA PI and PEM are described in Annex.3.

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2. Outline of Target Area

(1) Target Area of Master Plan

The target area of the Master Plan covers the Nacala Corridor area, which is composed of 19 districts from

the Provinces of Nampula, Niassa and Zambézia. The physical area of the target area is 107,002 km2 of

which population is estimated at approximately 4,287,415 in 2011 (Estimation by INE Population Census).

Province of Nampula: Monapo, Meconta, Muecate, Mogovolas, Rapale (Nampula), Murrupula, Mecubúri, Ribaué, Lalaua, Malema

Province of Niassa: Chimbunila (Lichinga), N’Gauma, Mandimba, Cuamba, Sanga, Majune, Mecanhelas

Province of Zambézia: Gurué, Alto Molocué

(2) Natural Conditions

� The mean annual temperature ranges from 25 to 26 ºC in the eastern coastal area and from 22 to 23ºC

in the western inland area, while in the highland of Lichinga it goes below 22 ºC. The mean monthly

temperature varies from 18.5 to 26.5 ºC, showing higher degrees in the rainy season (from November

to April) than in the dry season (from May to October). The mean annual precipitation ranges from

1,000 to 1,200 mm in the major part of the Nacala Corridor, with some regions varying between 800

and 1,000 mm in Monapo, Meconta, Mogovolas and part of Malema and Cuamba, while it goes over

1,200 mm in Gurué, Alto Molocué and Sanga. Some mountainous areas in Gurué show more than

1,600 mm of annual precipitation.

� Flat and low coastal plain characterizes the eastern region. Altitude rises westward, and a hilly zone

with prominent peaks extends up to the central region. There is a massif of steep-sloped high

mountains in the southern region, Mount Namuli being the highest point (2,419m). In the

middle-western region, the topography is largely represented by floodplain along the lakes bordering

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Malawi. Highland of Lichinga extends in the northwestern region with relatively elevated altitude. To

the west end, the terrain drops to the shore of Lake Niassa.

� Almost all the river basins of the Nacala Corridor drain towards the Indian Ocean, with a few

exceptions draining toward Lake Niassa. Most major basins are those of Rovuma and Lurio rivers.

The mean annual runoff, in total, reaches approximately 20,000 million m3/year which presents a large

potential for water development since the available volume is far larger than estimated water demand.

However, uneven time distribution of river water and potential storage capacity should be taken into

consideration. Regarding groundwater, most parts of the Nacala Corridor have aquifers with limited

productivity or insignificant presence of groundwater.

� Major soil types in the Nacala Corridor include lixisols, ferralsols, arenosols, etc. as dominant ones.

Very limited information is available on the soil fertility: however, according to provisional results of

soil analysis, the soils of the Nacala Corridor are almost neutral or only weakly acidic, except for

several samples in Gurué District, and their nutritional level of nitrogen, phosphorous and potassium is

fair or deficient, especially low for potassium.

(3) Socio-economic Condition

� Land-uses in the target area are represented below. Also, there are 5 nationally protected reserves

inside or on the border of the target area. Area (km2) Percentage Cultivated area 37,451 35% Grassland and shrub 10,700 10% Forest 57,781 54% Others 1,070 1%

TOTAL 107,002 100% “Cultivated area” includes: field crops, shrub crops, tree crops (partly forest plantation) and shifting cultivation areas.

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� Total population of the target area is estimated to be 4,287,415 in 2011. Comparing the districts,

population density ranges from 3.0 (Majune) to 97.2 inhabitants/km2 (Monapo), with an average of

40.1 persons/km2. A family is composed of 4.9 members on average. Rural population growth rate is

expected to be 1.8% per annum from 2011 to 2030. On average in the districts, economically active

population occupies 51.6% of the total population and of the economically active population 40.4% is

unemployed.

� The mean coverage area of one hospital, health centre or health post is calculated to be 430 km2

(equivalent to an 11.7km radius). Infant mortality reaches 101.34 per 1,000 births*. As for rural water

supply, 55.7% of the households are using manual shallow wells, 29.2% take water from a river or

lake, while only 2.3% has access to tap water. The rate of households using electricity is 6.5%, and it

becomes as low as 3.3% if Nampula and Lichinga municipalities are not counted. Road density in the

districts is 47.8 m/km2 on average. School enrolment rate in the rural areas of the northern region of

Mozambique, including the Nacala Corridor, was 67.5% for primary school and 6.4% for secondary

school in 2008. Literacy rate by age group ranges from 16.8% (over 60 years old) to 53.0% (between

15 and 19 years old), showing a considerably lower rate for females. The following table shows the

literacy rate by province as of 2009.

Province Male Female Total Nampula 58.6% 23.9% 41.2% Niassa 57.1% 22.8% 39.2% Zambézia 63.9% 22.3% 41.6%

� The agricultural sector, including livestock farming, forestry and fishery, occupies 80.6% of the

employed or self-employed population*. GRDP and poverty incidence at provincial level are shown

below: Province GRDP per capita in 2009 (USD) Poverty incidence in 2008/09 (%)

Nampula 332.0 54.7 Niassa 225.6 31.9 Zambézia 222.8 70.5

* These figures did not count the districts of Mecubúri, Lalaua, Mecanhelas, Majune and Sanga due to data unavailability.

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3. Present Conditions and Issues

(1) Data/Information Collection, Field Survey and Discussions for Analysis of Current Situation

The Study to prepare the Master Plan was conducted using several approaches.

The Study Team reviewed, studied and analyzed existing reports, plans, regulations, other documents and

raw data provided by MINAG, DPAs, SDEAs and other relative public and private institutions.

In addition to the review and analysis, field surveys were carried out in order to understand the actual

current situation. During the field survey, interview surveys with SDAEs, individual farmers, farmers’

organizations and private companies were implemented. Sample farmers were introduced by SDAEs and

the Study Team also held interviews with other farmers.

In parallel with the survey, a farmers’ organization survey and trade survey were carried out by a

Mozambican company under subcontract. In the farmers’ organization survey, a total of over 150

organizations were interviewed, consisting of 3 federations, 14 forums, and 140 individual organizations

(associations and cooperatives). In order to collect detailed information, four workshops were held with

representatives of farmers’ organizations at district-level forums facilitated by local experts with

participation of the Study Team in strategic places: Monapo, Malema in Nampula province, Gurué in

Zambézia province, and Mandimba in Niassa province. In the trade survey, interviews were conducted with

DPA of Nampula, Zambézia and Niassa, and the 14 district*2 government boards including producers,

traders, transporters, and customhouses. In every district, ten places were selected as route points and

samples to fill in the questionnaire.

In the Study, stakeholder meetings were carried out over three times with the objective of sharing the

Study plan and determine the desires and concerns of the local people. The 1st set of meetings was held in

April 2012 in Nampula, Lichinga, Quelimane and Alto Molocué. The 2nd was held in November 2012 in

Nampula and Maputo and the 3rd was held in March 2013. The following table describes the location, as

well as the number of the participants and their affiliation.

Number of Participants in the Stakeholder Meetings

Round 1st meetings (April 2012)

2nd meetings (November 2012)

3rd meetings (March 2013)

Place Nampula Lichinga Quelimane

Alto Molocué Nampula Maputo Maputo Nampula

Farmer 2 0 0 8 4 0 3 2 Private enterprise 10 9 2 2 6 8 3 2 Public organization 28 28 6 7 28 22 26 21 NGO and Donor 3 5 0 4 3 10 18 12 Unknown 3 1 2 12 0 0 2 1 Sub-Total 46 43 10 33 41 40 52 38 Grand Total 132 81 90

Source: Study Team * Members and staff of the Study Teams were not counted.

*2 The Study area consisted of 14 districts at the beginning of the study. In the study, 5 districts (Mecanhelas, Sanga, Mecuburri, Lalaua and Majune) were included in the study area upon request of the Mozambican Government.

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Moreover, counterparts of DPA and the Study Team conducted district meetings in all 19 districts. The

meetings were conducted on two levels in Nampula and Zambézia provinces according to the expected

degree of prior involvement with the work of the participants. One meeting was held with consultative

council along with additional governmental personnel. The other meeting was held with farmers gathered

from every administration post in the district. In total, 1,755 participants attended these meetings, and they

were given an explanation about ProSAVANA and allowed to express their comments, desires and

concerns.

(2) Agriculture

� Shifting*3 cultivation prevails in the Study area. The farming system needs a vast fallow area which is

2-5 times the size of the actual cultivated area. Shifting cultivation must be a land resources

consuming farming system, though many local farmers pay attention to maintain soil fertility through

keeping a fallow period and inter- or mixed-farming system.

� Relatively low population density and acceptable annual precipitation in the Study area have allowed

local farmers to continue the shifting cultivation on a sustainable basis without serious damage to the

natural environment.

� A unit yield of major crops in the Study area is very low. The yield is much lower than the potential

yield for most crops. For example, the yield of maize, which is a staple crop, in the Study area is only

1.3t/ha, while the yield in South Africa is 4.7 t/ha (more than 3 times).

� Basic farming strategy of the shifting cultivation is to restore soil fertility by keeping a certain fallow

period instead of taking artificial measures. In addition, farmers tend to choose a steady farming

strategy of low-inputs and low-return rather than an ambitious strategy due to unstable rainfall pattern

and their insecure land rights.

� Though farmers can easily increase productivity of many crops, their only concern for increasing the

production is to expand cultivated area at present. Many farmers consider that a small family labor

force, as explained Sub-chapter 3.(3), is the major limitation of the expansion.

� It is estimated that the present population density in the Study area, 40.1 habitants/km2 in 2011, would

increase to 71.8 habitants/km2 in 2030. It is generally estimated that any type of shifting cultivation

can feed only a maximum 40 habitants/km2 even counting supplementary foods from other activities

such as hunting and collection. The condition for continuing the shifting cultivation on a sustainable

basis is rapidly collapsing because of the high population increase (refer to Annex-1).

� Land conflicts among people have already emerged in some areas in the Study area, especially in the

fertile areas where access is easy. Farmers in the Study area should understand the on-going situation

that the land is going to be saturated with increasing population, and they are losing the base to

continue the shifting cultivation on a sustainable basis.

*3 As a definition for this Study, shifting cultivation is a system in which relatively short periods of continuing cultivation are followed by relatively long periods of fallow., a repose for the land with restoration of the secondary vegetation.

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With respect to major crops, i.e. maize, cassava, sorghum, pulses, groundnuts, paddy and soybeans, their

planted area, productivity (t/ha), production and values in the Study area in 2020 and 2030 are estimated in

the study of Master Plan. According to the estimation, the production would far exceed the local demand,

except for wheat and paddy, and people in the Study area would be able to consume sufficient calories

(2,300 kcal/day/person in 2020 and 2,500 kcal/day/person in 2030). However, increased production of the

crops by improving the productivity must be an essential precondition. If the on-going scarcity of land due to the increasing population as mentioned above is not seriously

recognized by the people, farmers will continue the shifting cultivation. As long as they continue to shift

their farmland at several years’ intervals, they won’t have enough incentive to improve soil structure and

fertility by using inputs and technology for the production increase. As time goes on, potential risk for

continuing the sustainable farming shall be increased due to soil deterioration caused by a shortened fallow

period and rapid deforestation. In conclusion, transition from the shifting cultivation into settled farming is the main premise of increased

productivity by introducing intensive farming technology. The transition also promotes efficient land use

by transferring fallow land into cultivated land, and the conservation of the natural environment, which

forms the base of agriculture.

(3) Farm Management

� Agriculture in the Study area is characterized by small-scale farming (Average farm size: 1.25ha in

Nampula Province, 1.29ha in Zambézia Province and 1.82ha in Niassa Province). Most farmers in the

Study area are categorized as small-scale farmers* (99.7% in Nampula province, 99.9% in Zambézia

province and 99.9% in Niassa province).

*Note: Small-scale farmers are farmers who manage < 10ha of non-irrigated area

� Farmers who manage 1–2 ha of farmland mostly depend on subsistence farming, and grow maize,

cassava, sorghum, groundnuts and pulses for their own consumption. The crops are usually grown

mixed together in the same field, while farmers who manage > 5ha of farmland diversify their crops

into cash crops, such as cotton, tobacco and vegetables.

� The nuclear family system is dominant in the Study area. One family generally consists of husband

and wife, and 3-5 unmarried children. As an adult man assumes responsibility for land reclamation

and cultivation, many farming families can allocate only a limited number of laborers to the works due

to the nuclear family system, even though there is a mutual cooperation system among relatives. This

is the major limitation to expanding farmland for farming families.

� Actual land occupation is the most important evidence to declare rights to a certain parcel of land

under the traditional land management system. The more farmers reduce the actual cultivated area, the

more land rights they lose. The reverse is also true. Therefore, every farmer has a strong incentive to

expand his own cultivated area.

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� Farmers who manage a relatively large-size farmland are expanding their cultivated area using hired

laborers. On the contrary, farming families who cannot mobilize enough adult males, i.e. widow

families and aged-couple families, suffer a disadvantage.

� Small-scale farmers usually depend on subsistence farming, and don’t have a substantial surplus of

farm products. They sell their surplus to middlemen or sometimes to consumers at their farmyard or at

a market located nearby.

� While many small-scale farmers have no cash income from farming (estimated about 50%), most

small-scale farmers who sell their products have a limited income from the sales, several hundred –

several thousand MT/year.

� Collected fire wood, along with charcoal and other valuable goods from bushes and forest are

important cash income sources for many small-scale farmers, while the farmers themselves also

consume them

� Seasonal farm labor work is a major off-farm income source for small-scale farmers. However, the job

opportunities may be very limited even in rural parts. Job opportunities for other works are quite

limited for the farmers.

� Accessibility to off-farm income greatly influences the total income of farmers. A successful person in

a self-owned business usually has a good network with people outside of the village. The main issue of rural development in Mozambique is that incorporation of the benefit of recent national

economic growth into the rural economy. The incorporation would boost the rural economy and trigger the

self-sustaining development. Improvement of the livelihood of inhabitants in the rural area shall be

achieved after the development. While many inhabitants, who are mostly small-scale farmers, are engaged

in a self-sufficient life, a good linkage of their economic activity with the external economy shall be a base

for fair incorporation. In order to accelerate the linkage, the following shall be materialized.

a. Increased production of basic food crops

b. Diversification of farm products, including processed products

c. Development of a smooth distribution system of farm products especially to urban parts

(4) Present Conditions for Marketing, Logistics and Processing of Agricultural Products

� Due to poor road conditions and other limiting factors in the Nacala Corridor, the entire agricultural

supply chain, involving promotion and distribution of agricultural inputs such as quality seeds and

fertilizer, introduction of agricultural machines and post-harvest facilities, as well as processing and

distribution systems, has not been well established, which has hindered the development of

agribusinesses in the area. As a result, farmers living in the rural areas have faced a difficulty in

finding markets for their products, while in contrast, agribusinesses have faced a challenge in

collecting and purchasing adequate amounts of quality products for processing and marketing.

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� Agro processing industries operating in the Nacala Corridor are dominated by the primary processing

factories for tobacco, cotton and cashew nuts that are the major cash crops in the area in addition to

small-scale grain mills, while the number of agribusinesses operating for the secondary processing to

produce value-added products is quite limited. Thus employment opportunities of local people in the

agro-industry sector are unlikely to rise.

� A primary processing factory for cashew nuts is a labor-intensive industry that provides a number of

employment opportunities to local people. At the moment around 10 cashew processing factories are

operating in the Nacala Corridor.

� Small-scale maize and cassava mills for domestic use and the primary processing for marketing to

local markets are only located in the centers of some districts.

� Though most agricultural products in the area are produced by small-scale farmers, the productivity is

low due to limited usage of agricultural inputs such as quality seed and fertilizer, and the result of

applying extensive farming. Moreover, small-scale farmers and farmers’ associations have faced a

problem in finding buyers and arranging transport of products to the market as most buyers are

reluctant to come to the rural villages for purchasing products.

� In terms of agricultural production, some agribusiness companies have implemented contract farming

with small-scale farmers and associations/farmer’s groups for producing soybeans, maize, sesame, and

so on. Since agribusinesses tend to show more interest in engaging in contract farming, there is a

potential to promote this approach widely in the Nacala Corridor.

During recent years, some examples have been found in the Nacala Corridor Area in which an agribusiness

company established an out-grower scheme for agricultural production with local small scale farmers. The

scheme leads to promotion of improved cultivation techniques by complimenting the insufficient

agricultural extension system by the public sector and ensuring stability to the market. Through the

out-grower scheme, local farmers expect benefits on ensuring stable markets, obtaining quality agricultural

inputs and acquiring improved cultivation techniques, while the agribusiness company expects benefits on

reducing initial investment cost and securing stable amounts of products.

(5) Current Situation of the Use of Natural Resources

� Water resources: Due to malfunctioning and abandonment of the hydric observation network after

the 1990’s, the river discharge data have a serious limitation to assess the hydrological situation in the

target area. However, as an overview, the region has a large potential for water development and the

available amount is much larger than estimated water demand, even if 30% of the runoff is reserved

for ecological flows and conservation purposes. On the other hand, it is to be considered that there is

an uneven time distribution of river flows, both throughout the year and from year to year, and

therefore the lack of intake and storage facilities would be constraints to development. Smaller runoff

characterizes the eastern part of Nampula Province, where a concentration of development is observed

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in some river basins such as Monapo. Considering the demand increase for urban and rural water

supply by population growth, and irrigation and industrial development, there is a concern that the

balance of water resources and water demand would become seriously tight in the future.

� Forest resources: Forest covers about 54% of the target area with a higher percentage in the

northwestern part. However, deforestation has been observed even inside the nationally-designated

forest reserves, which is particularly rapid in Nampula Province. Principal factors contributing to

deforestation include: forest fires associated with shifting cultivation, forest clearance for farmland

reclamation, excessive or illegal logging, encroachment by increasing demand for timber, firewood

and charcoal, and insufficient reforestation. Though natural forests are protected by different legal

instruments in view of their importance for traditional rural communities, conversion of forests into

other land uses is regarded as rather feasible if all the legal procedures are duly met. Official strategies

for forest conservation do not yet exist at national, provincial or watershed levels.

� A well-structured legal framework exists for ensuring the sustainable use of natural resources.

However, due to the weakness in its enforcement and supervision, some conflicts have been observed

between local communities and investment projects in terms of the use and management of the natural

resources such as soil/land, water, forests and wildlife.

If the current situation continues, an ambivalent status will emerge where the huge potential of water

resources remains underdeveloped in some regions while other regions with lower potential suffer from

more severe water shortage. Deforestation and fragmentation of forests will also continue, and furthermore,

the shortening of fallow periods will result in soil degradation and decline in land productivity. Conflicts in

the use of natural resources, which will hamper the achievement of sustainable agricultural development,

will become more frequent under increasing population pressure if adequate preventive or corrective

measures are not fully taken by the government.

(6) Constraints on Agricultural Development in the Nacala Corridor

The constraints on agricultural development in the Nacala Corridor from the aspect of improving livelihood

of inhabitants, that is a vision of ProSAVANA, are outlined in Figure-1.

Small-scale farmers are dominant in agricultural production in the Nacala Corridor and their major farming

style is “shifting cultivation with slashing and burning”. The shifting cultivation had been selected by

farmers as a stable and sustainable approach to agricultural production with low environmental load, under

the condition of relatively low population density. However, the precondition of the suitability and

sustainability, that is low population density, has not been maintained due to recent population increase in

the area. The shifting cultivation, which is low input and low productivity farming style, becomes one of

the key constraints on the increase of productivity and production. At the same time, it restricts

improvement of quality and diversification of agricultural production as well as increases in the volume of

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marketed products, so that the marketing, distribution and processing of agricultural products have not been

developed in the area.

Figure-1 Constraints on Agricultural Development from the Aspect of Improvement of

Livelihood of Inhabitants

This causes farmers difficulty in securing a stable market and higher selling price. As a result, farmers in

the area are not able to increase their agricultural income due to low productivity, low selling price and lack

of market. On the other hand, due to undeveloped agro-processing and non-agricultural industries in the

area, the opportunity for work and off-farm income of inhabitants is very limited.

Considering the current situation of farming and agriculture in the Nacala Corridor Area, the following

points are considered as key issues for overcoming constraints and improving the livelihood of the

inhabitants:

a Increase of productivity and production and diversification of agricultural production,

b Development of marketing, distribution and processing industries, and input supply, which leads to

increased agricultural products to the economic benefit of farmers,

c Sustainable use of natural resources and farm land in order to preserve sustainable and stable

development of the regional agriculture into the future.

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4. Zoning

(1) Zoning

Zoning was done in order to examine the direction of agricultural development in accordance with regional

characteristics in the Study area. Each district in the Study area was evaluated by an accumulated score

after quantification of various characteristics of the districts based on collected information during the

Study. Finally, several districts with similar scores were grouped together as a zone considering their

geographical locations. The following three key factors were set for the zoning.

l Urgency of transformation from shifting cultivation

l Receptiveness of local farmers to new farming technologies

l Compatibility of local farming conditions with an agricultural diversification

The following district data were analyzed for the zoning.

Key Factors District Data Analyzed 1. Urgency of transformation

from shifting cultivation l Population density l % of forest area l % of forest DUAT area

2. Receptiveness of local farmers to new farming technologies

l % of labor population (age: 16–65) l Enrolment rate to ESG-I&II (age: 10–14) l % of old persons (age: over 65)

3. Compatibility of local farming conditions with an agricultural diversification

l Crop adaptability map (temperature, rainfall, soil & slope) l Land use map l Population density of rural area l Literacy rate (age: 15–65) l % of cultivated area l Road density (major roads only) l Railway density l Supply & consumption of firewood (FAO WISDOM methodology)

The Study Area was divided into six zones after the zoning, as shown in Figure-2.

Figure-2 Zoning Result

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(2) Agricultural Development Potential by Zone

Zone Key Factors Remarks 1. 2. 3. Advantages/Opportunities Disadvantages/Threats

I Medium Low Low - Medium

l Good access to Nacala port & Nampula city

l High % of fertile soil area l High % of non-food crops

planted area l High potential for small

pump irrigation

l Reducing farmland by development of industry and population increase in Monapo

II Low - High

Medium - High

Low - High

l Good market (high urban population)

l Large cultivated & fallow area

l High potential for small pump irrigation

l Reducing farmland by development of industry and population increase in Nampula

l Low % of forest area

III Low - Medium

Low - Medium

Medium - High

l Expecting improved access to Nampula city & Cuamba city

l Large cultivated area l High % of fertile soil area l High % of non-food crops

planted area l High water resources

capacity and many river courses

l Large mining concession areas in Lalaua and Alto Molocué

l Large forest concessions & DUAT areas in Ribaué, Malema and Lalaua

IV Medium Low Low l High precipitation l Cool climate l High water resources

capacity l Good road access to

southern provinces

l Limited farmland (mountainous area)

l Undeveloped rural road network

V Medium Low - Medium

High l Strategic stoppage of railway and road networks (crossroad point)

l Close linkage with Malawi market

l High potential for pump-irrigation system along Lurio River

l Rapid increase of rural population (limited farmland in the near future) in Mecanhelas and N’Gauma

l Large mining concession area in N’Gauma

VI Medium - High

Low Low - High

l High precipitation l Cool climate l High urbanization of

Lichinga l Good access to Cuamba city

and Pemba l Many river courses

l Low % of fertile soil area l Large mining concession

area l Large forest concessions &

DUAT areas in Majune and Lichinga

l Undeveloped rural road network

l Far distance from large markets

- 15 -

5. Direction of Agricultural Development (1) Basic Concept of Agricultural Development

� The Agricultural Development Master Plan in the Nacala Corridor is formulated based on the

Strategic Plan for the Agricultural Sector Development (PEDSA) as the superordinate strategy, and on

the vision and mission of ProSAVANA.

� Based on the analysis of the present situation and constraints of farmers, agriculture and rural area in

the Nacala Corridor, the basic approach and agricultural development strategy of the Master Plan were

examined from the following three aspects as mentioned in the vision and mission of ProSAVANA:

a. Increase productivity and diversification of agriculture

b. Establish agricultural value chains

c. Ensure sustainable use of natural resources � Considering the target year of PEDSA, other development plans of the government, other similar

agricultural development plans, and the requirement for a significant preparatory period due to the low

literacy rate of population, the target year of the Master Plan is set at 2030, which is divided into three

stages: 1) seven years for the preparatory period, 2) five years for the development growing period and

3) five years for the full development operation period.

� The targeted beneficiaries through the implementation of the Master Plan are small to medium-scale

farmers in the Nacala Corridor.

(2) Increase in Production and Productivity and Diversification of Agriculture

� Strategic Crops

a. Basic food crops: maize, cassava, haricot beans, cowpea and groundnuts

b. Cash crops: soybeans, potato, vegetables, cashew, cotton and tobacco

c. Other considerable crops: sesame, sunflower and tea

� Animal husbandry is not popular in the Study area due to high prevalence of tse-tse and tripanosomiasis, and a lot of other basic constraints. Chicken is an economically high potential livestock considering the present condition. With development of chicken industries, the

demand for raw feed materials, especially soybeans and maize, shall increase. The industries will

become good buyers of such crops from farmers, and provide job opportunities for them. The

development potential for livestock other than chicken in the Study area is relatively low. There are a

lot of fundamental and deep-rooted constraints that impede the engagement of general farmers in

livestock breeding.

� A new farming strategy, which aims at increasing crop production through improvement soil fertility, is recommended for farmers in the Study area to increase their productivity. The

following measures are recommended to facilitate the change.

(i) Improvement of individual farmer’s land rights (DUAT acquisition)

- 16 -

(ii) Provision of incentives to farmers to facilitate the transition from shifting cultivation to settled

farming (combined with DUAT acquisition)

(iii) Development and dissemination of improved farming technology to support the transition

(iv) Increased accessibility to affordable agricultural inputs, especially quality seeds and chemical

fertilizers

(v) Improvement of a market information system accessible by farmers

(vi) Establishment of micro financing/credit systems targeting general farmers

The projects to materialize the above measures will be suggested in the Development Master Plan in

accordance with the strategies mentioned below.

Development Strategy Measures

DUAT acquisition among small and medium-scale farmers

� Providing land title (DUAT) to small and medium scale farmers to secure the land use rights of local farmers

Improvement of technical support services

� Strengthening of agricultural research in order to develop and transfer an appropriate agricultural technology in Nacala Corridor

� Strengthen the agricultural extension service to expedite the transformation of extensive farming to intensive and market-oriented farming in the Project area

� To establish the model to develop leading farmer who disseminate the new cultivation technology and joint works implemented by association

� Fostering able personnel who play a leading role in agricultural development in the community

� To develop qualified agricultural distributors who provide agricultural consultation services on farming technology to farmers as a supplementary service of their business

Improvement of access to agricultural inputs

� To improve accessibility of chemical fertilizers for general farmers through introducing subsidy system

� To improve accessibility of quality seeds with affordable price at district level through increasing able seed growers and production of quality seeds of major crops

� To increase number of agricultural mechanization service providers in order to make environment which farmer can use the mechanization service at affordable cost.

Support for access to market and business development

� To improve management of farmers' organizations through developing the model of modern agricultural cooperatives and transforming existing associations to the modern agricultural cooperatives

Formulation of value chains

� To create an environment of cooperation and integration between the small scale farm and new investors

� To create a fairly competitive environment of agriculture product trade � To improve market efficiency through improving market information system

Improvement of infrastructure of agricultural logistics

� To improve efficiency of supply chain, quality control of agriculture produce, and present public storage network, through rehabilitation of agricultural storage facilities

� To rehabilitate or improve roads which used for agricultural activities as distribution, connection between production area and market

- 17 -

Improvement of access to agricultural financing/credit

� To establish financial support for small and medium sized enterprises, farmers’ organizations (cooperatives and associations), and individual farmers

Development of irrigation infrastructure

� To increase and diversify agricultural production by promoting irrigation farming through rehabilitation of existing irrigation system

� To improve farmer’s skill and technology on irrigation farming and water management

� To improve quality of construction work of irrigation facility and its maintenance

� To promote vegetable production with small pump and simple irrigation system among small scale farmers for aiming their cash income

(3) Establishment of Agricultural Supply Chains and Promotion of Value Chains

Promotion of agribusiness for the establishment and strengthening of agricultural supply chains

� Though agricultural products result in value as a primary commodity if sold to the market without

processing, additional value can be created, such as increased price and diversification of products, if

raw products are processed for value adding in the region. As a result, value adding could promote

expansion of the regional economy. Therefore, it is necessary to establish and strengthen supply

chains of agricultural products, which could also enhance development of different types of

agribusinesses.

� In addition, it is expected that cluster development, which enables strategic linkage with other

business sectors for creating multiple values, could increase additional values on the products by

effective use of agricultural resources.

Strategy and plan for promotion of agribusinesses

� Concerning the current condition of agricultural supply chains in the Nacala Corridor, promotion and

capacity building of agribusinesses will be implemented with the following strategies: 1)

strengthening of distribution capacity of agricultural inputs by agribusinesses, 2) preparing of

comprehensive infrastructure for establishing agricultural supply chains including improvement of

market information access and standardization of agricultural products (software components), and

development of agriculture logistics (hardware components), and 3) supporting of business

development for small–medium agribusinesses.

� In order to repel an invasion of community rights by agribusiness investment, private investors

interested in agricultural development in the Nacala Corridor will be requested to comply with the

principles of Responsible Agriculture Investment (RAI) and “Voluntary Guideline on the Responsible

Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security” (VG);

however, the application of RAI and VG in investments is voluntarily undertaken by investors.

Because the Government of Mozambique has enacted land and environmental laws that are governed

by the principles of RAI and VG, the application of RAI and VG to agricultural investments could be

imposed by strengthening the enforcement system for the actual legal framework. Thus, the Master

Plan proposes implementation of a project for strengthening of supervision mechanisms on land and

- 18 -

environment law enforcement.

- 19 -

� Contract farming is (remarkably-)helpful for small-scale farmers and farmers’ groups as an initial step

towards becoming an equal partner with agribusinesses to provide sufficient quality products without

relying on extensive support from companies. In order to promote this, introducing an affordable

agricultural financing/credit system targeting both agribusinesses and farmers’ groups is proposed.

The Master Plan component projects relating to promotion of agribusiness and agricultural supply chains

will be proposed according to the development strategies mentioned below.

Development Strategy Measures

Strengthening of RAI and VG application procedures

� To strengthen the supervision mechanism on land and environment law enforcement through elaboration, ratification and properly revision of PDUTs and capacity development of governmental officials

� To prepare database of available and parceled land for investment with agronomic, socioeconomics and environmental information

Improvement of agriculture extension service by private sectors

� To develop qualified agricultural distributors who provide agricultural consultation services on farming technology to farmers as a supplementary service of their business

Improvement of access to agricultural inputs (strengthening of distribution capacity of agricultural inputs by private sectors

� To improve accessibility of quality seeds with affordable price at district level through increasing able seed growers and production of quality seeds of major crops

� To increase number of agricultural mechanization service providers in order to make environment which farmer can use the mechanization service at affordable cost.

Promotion of collaborative mechanism between farmers and agribusinesses

� To establish financial support for small and medium sized enterprises, farmers’ organizations (cooperatives and associations), and individual farmers

Support for agribusiness development

� To establish support organization for the investment and value chain development, which is a comprehensive platform for providing investment and marketing information

� To develop quality business development services which contribute to rural and regional socioeconomic development through the fosterage of small and medium enterprises

� To improve management of farmers' organizations through developing the model of modern agricultural cooperatives and transforming existing associations to the modern agricultural cooperatives

Support for formulation of agricultural value chain

� To create a fairly competitive environment of agriculture product trade

� To improve market efficiency through improving market information system

� To strengthen price competitiveness of agriculture products by decreasing transaction cost and increasing quality of product through introducing standardization of agricultural products

Development of agricultural logistics

� To improve efficiency of supply chain, quality control of agriculture produce, and present public storage network, through rehabilitation of agricultural storage facilities

� To rehabilitate or improve roads which used for agricultural activities as distribution, connection between production area and market

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Preparation of comprehensive infrastructure for developing agribusinesses and clusters

� To create special economic zone for agricultural development with incentives (tax, financing, technical assistance, etc.).

Implementation of cluster development projects

� To develop cassava processing agroindustry under the out-grower scheme with associations of local farmers

� To revitalize cashew production as a special local products through replacement of old disease-infested trees

� To revitalize tea production as a special local products through establishing accessible financing mechanism, replacement of aged tea trees by quality seedlings and promoting tea out-grower scheme

(4) Agricultural Cluster Development

1) Concept of agricultural clusters

The development of agricultural clusters is a strategic approach to accelerate agricultural

development within a specified territory. The central line of the development strategy is to design

one or more value chains, with synergic potential and in appropriate context regarding the territory,

in order to channel efforts for its realization within a period shorter than that which could be

achieved without integrated and specific actions.

All parties that are related to agricultural production, such as producers, inputs suppliers,

machinery suppliers and other service providers, represent a part of the constitutional elements of

the cluster. The clusters also involve marketing and processing networks including producers of

complementary products and by-product processors. Finally, the cluster includes governmental

institutions, universities, training centers and commerce, which provide training, education,

information, research and specialized technical support.

Each cluster will encompass a variety of independent entities related to agricultural development,

which will involve smallholders, farmers’ cooperatives, private companies and the government

sector working together in synergy between the components. Figure-3 shows an image of an

agricultural cluster. Since the clusters emerge and expand with mutual benefit of all parties

involved, the development of the clusters brings considerable benefits to the local economy,

especially to the agricultural sector. In a region where smallholders assume a large role in

agriculture, like in ProSAVANA area, it is expected that a substantial part of the benefits shall be

absorbed by smallholders. The smallholders will be able to improve their livelihood through

increased, diversified and value-added production, as well as increased job and business

opportunities. They will also take an important role in the cluster through organizing their

associations or cooperatives.

- 21 -

. Source: Study Team, 2013.

Figure-3 Image of the Agricultural Cluster

2) Expected agricultural cluster development in ProSAVANA

Considering the direction of agricultural development in the Study area, maize, cassava, soybean

and other oil seeds, e.g., sesame, sunflower, cotton seeds, etc. would be major crops, and a

substantial amount of surplus of these crops is estimated in the near future. It is consequently

expected that a possible agricultural cluster developed in ProSAVANA should be composed of

value chains of those crops, as shown in Figure-4.

Figure-4 Expected Agricultural Cluster in ProSAVANA

Note: Development of livestock value chains may be very weak due to small potential in the area at present Source: Study Team, 2013.

- 22 -

Though Figure-4 shows a comprehensive cluster model, components of the cluster would differ in

accordance with local conditions. Clusters in some areas may have only one value chain, while

clusters in other areas may have several value chains. Additionally, a cluster may extend across more

than one district or zone, and several clusters in different areas may be integrated into a

comprehensive cluster. An agricultural cluster is inherently developed by unfettered activity of private

sector including smallholders and farmers’ cooperatives. ProSAVANA shall stimulate the private

sector to create a fair and dynamic business atmosphere in agricultural sector through comprehensive

measures descried in the previous sub-chapters, i.e. 5. (2) and (3)

(5) Sustainable Use of Natural Resources

Water resources: In order to achieve sustainable development of regional economy and irrigation, it is

a primary task to grasp the accurate situation of water use and development potential and share the

information among the concerned parties.

Forest resources: In order to reduce the pressure of forest resource exploitation and protect the forests

from further fragmentation, it is essential to establish local forests for the supply of firewood under

government initiative in addition to creating a mechanism for financial support as a fund contributed

to by the actors that generate impacts on deforestation. The Master Plan future prospect of agricultural

land and production in the Nacala Corridor is based on the assumption that the current forest area will

not be reduced; however, this does not mean total prohibition of human intervention on the forests.

Any undertaking of forest clearance to expand farmland, either by local farmers or investment projects,

shall follow the rules according to Mozambican laws.

Soil resources: In order to alleviate the risk of soil degradation and decline in land productivity,

countermeasures against the current tendency of shortening the fallow period will be needed. For this

purpose, transformation from shifting cultivation to a settled farming style using inputs and soil

conservation practices in a sustainable manner is regarded as the most adequate recommendation.

Land management: Modern legal management system by Land Law and traditional management

system by community decision making still coexist in the Nacala Corridor, and cadastral registration is

not yet complete. In order to ensure peaceful coexistence among neighboring farmers as well as

between farmers and investment projects, and to encourage a win-win partnership, it is essential to

promote DUAT regularization for individual small to medium-scale farmers. On the other hand,

systematic surveys and participatory planning shall be conducted to delimit community boundaries

and identify suitable lands for investment.

Governance of natural resources: In order to harmonize the projects of public and private sectors

proposed by the Master Plan with the balanced development and environmental conservation of local

communities, it is necessary to strengthen the government institutions in charge of supervision so that

corrective measures or sanctions are duly put in place for the relevant cases. Also, as an instrument to

prevent conflict and guide investors on proper methods, “ProSAVANA Guidelines on Responsible

Agricultural Investment” is being developed, taking into account the “Voluntary Guidelines on the

- 23 -

Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food

Security (2012, FAO)” and “Guidelines for Strengthening of Land Tenure Security of Rural

Communities and Partnerships between Communities and Investors (2013, Land Consultation

Forum).”

The following development strategies and individual projects are proposed to materialize the necessary

measures described above:

Development Strategy Measures

Land and environmental law enforcement

� Providing land title (DUAT) to small and medium scale farmers to secure the land use rights of local farmers and creating an environment of cooperation and integration between the small scale farm and new investors

Water resources management

� To arrange necessary information for development and management of water resources, and to be shared among concerned actors of development including private investors, in order to realize well-ordered water use and development in the basins through appropriate water resources management.

Forest resources management

� Extending the income-generating options for the small and medium producers in the forest sector, through establishing forestry nurseries and training for delivery of quality seedlings production

(6) Preliminary idea of Direction of Agricultural Development by Zones

The collected information and data based on district or not was analyzed in the study, such as natural

condition, marketing information like distribution network, possible market, population, present agriculture,

distribution of social and economic infrastructure, etc. Based on the information, analyzed potential and

constraints of each zone, their character as advantage, opportunities, disadvantage and threats were

summarized .

Based on these result, preliminary idea of direction of agricultural development by zones was considered as

below. Strategic crops of each zone are not mentioned in the table and will be determined through

discussion.

Zone Strategies

Strategic Crops Main Food

Crops & Beans

Oil Seeds & Cash Crops

I l Supplying surplus of major crops to Nacala & Nampula areas l Replacing old cashew trees and revitalizing the cashew industry l Promoting cotton production and processing l Supporting small-scale pump irrigation and rehabilitation of

defunct irrigation facilities (for vegetables & other high value crops)

l

II l Fulfilling the zonal demand of major crops, and processing the internal surplus and the surplus from neighboring zones

l Promoting all kinds of agro-industries to develop a center for the agricultural cluster

l

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l Replacing old cashew trees and revitalizing the cashew industry l Supporting small-scale pump irrigation and rehabilitating defunct

irrigation facilities (for vegetables & other high value crops) III l Supplying surplus of major crops to Zone II & Zone V

l Developing an advanced agricultural production center l Supporting small-scale pump irrigation and rehabilitating defunct

irrigation facilities (for vegetables & other high value crops) l Promoting cotton production and processing l Developing the poultry industry l Supporting commercial seed growers

l l

IV l Fulfilling the zonal demand of major crops l Supplying vegetables and potato to other areas l Replacing old tea trees and rehabilitating the tea industry

l l

V l Fulfilling the zonal demand of major crops, and processing the internal surplus and the surplus from neighboring zones

l Promoting high value oilseeds & industrial crops production l Supporting pump irrigation (for vegetables & other high value

crops) l Promotion of all kinds of agro-industries to develop a center for

the agricultural cluster l Supporting commercial seed growers

l l

VI l Supplying surplus of major crops to Zone V l Rehabilitating defunct irrigation facilities (for vegetables & other

high value crops) l Developing the poultry industry l Supplying potato to other areas l Supporting commercial seed growers

l l

6. Roles and Benefits of Key Actors in the Master Plan Implementation (1) Role of key actors

In implementation of the Master Plan, farmers, cooperative and associative sectors, public, private and civil

society have important roles. Moreover, partnerships among the parties will be favored whenever

applicable. 1) Farmers (small, medium and commercial)

Farmers are the main actors of development in the Nacala Corridor area. The farmers are expected to

improve their own livelihoods through increasing production and productivity in agriculture by applying

improved methods and technology in addition to implementing self-sustained economic activities related to

the market. In particular, small-scale farmers will change from subsistence farming to sustainable farming

and achieve sufficient benefits for development in the future. 2) The Public Sector

The role of the public sector is to create favorable conditions for the farmers (small, medium and

commercial) and private companies to be able to carry out their activities in a competitive environment,

- 25 -

providing goods and services such as agricultural research, agricultural extension and specialized services

in seeds, plant and animal health and land administration. The public sector will also be responsible for

ensuring the rule of law and good governance. Among the public sector, MINAG, Ministry of Agriculture

and Livestock, will take the initiative to promote the Master Plan and coordinate with their subordinate

organizations, other ministries, other public entities like financial institutions, the private sector, civil

society, development partners and farmers. 3) The Private Sector

The expected function of the private sector is to become the driving force of development. The private

sector includes corporate farms, traders, processors and service providers in rural finance, surveying and

other liberal professions. In order to develop input supply networks and value chains, growth of the private

sector, especially expansion of the trading network and processing, will be required. Through the value

chain, the value of agricultural products will multiply and the increased value will be distributed among

people along each segment of the chain. 4) Civil Society

Civil society organizations, particularly non-governmental organizations and universities, are expected to

play a fundamental role in developing human and social capital. They will also contribute to the

transparency of the Master Plan activities through independent monitoring and regular dialogues. This

process will also be supported by universities, particularly with regard to studies and policy analysis, and

by media or press. 5) Development Partners

The cooperation partners, such as international institutions, donor countries and non-governmental

organizations, are expected to participate in the programs and co-fund them. (2) Benefits of Key Actors

Through implementation of the Master Plan, farmers including their cooperatives and associations and the

private sector will be presented with approaches for development. If they respond to and act upon the

approaches, the Master Plan will result in benefits for the actors. 1) Farmers (small, medium and commercial)

The farmers are expected to improve their livelihoods through strengthening production in response to the

approaches of ProSAVANA.

i. Secure own land use rights through promotion of DUAT obtained for their farms and empowerment

of administration on private investment in accordance with the Land Law and related regulations.

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ii. Improve access to agricultural techniques needed for settled farming and extension services through

strengthening of public extension services and popularization of out-grower schemes with private

companies.

iii. Improve access to secure markets through diversification of crops, spread market information and its

dissemination, promote a linkage between farmers and traders and/or private companies by the

public sector, improve physical access through road improvement, strengthen bargaining power

though promotion of farmers organizations, increase selling price, etc.

iv. Improve access to agricultural inputs through a combination of the following: increase the turnout

volume of certified seeds and fertilizers, establish distal distribution networks, and improve farmer

(or farmer group) financing by providing reasonable loans through funds.

2) Private Sector

In order to generate a driving force of development aiming to improve the livelihood in the Nacala Corridor

area, ProSAVANA will provide the following support to the private sector.

i. Establishment and development of small and medium-scale agribusiness enterprises through

preparing financial support services and business development services.

ii. Establish clear governmental service system for private companies in agricultural areas through

integration of required related information.

iii. Support creation and development of domestic value chains by allocating government-owned

storage for private use, applying preferential treatment to targeted industries and formulation of

quality standards for transparent trading

7. Social and Environmental Consideration

The “JICA Guidelines for Environmental and Social Considerations (2010)” are applied throughout the

Study. It should be noted that the undertaking of an Environmental Impact Assessment (EIA) as defined in

Mozambican legislation will be the responsibility of the executing body of each component project in the

implementation phase of the Master Plan.

Important features for environmental and social considerations in Nacala Corridor are being studied, such

as protected areas, threatened species, land-use plans, forests, water resources, cultural heritage, DUATs

and concessions, conflict cases with investment projects.

A matrix of potential negative impacts is used to compare the alternatives to the Master Plan at policy or

strategy level. Further recommendations on the core strategies of the Master Plan shall be developed later

mainly in terms of land issue, forest issue, food security and benefit sharing (win-win relationship).

- 27 -

Negative Impacts on Natural Environment Negative Impacts on Social Environment Air pollution Water pollution Improper waste disposal Soil contamination Noise and vibration Ground subsidence Offensive odor Sediment contamination Disturbance of protected areas Deterioration of ecosystem and biodiversity Change in hydrologic regime Soil erosion and siltation Salt accumulation, other soil degradation Substantial alteration of land-form, geology and landscape Improper management of abandoned sites Increased risk of forest fire Trans-boundary or global effect

- X X X X

X X

X X X X X - -

Influence on indigenous peoples or minorities Detriment to cultural or historical heritage Involuntary resettlement Limitation of access to natural resources Loss or restriction of livelihood Serious change in lifestyle Marginalization of vulnerable groups Localization of benefits and damages Aggravation of conflict of interests Widening of gender inequity Working conditions and occupational safety Annoyances during construction Risk of accident and harm to human health Spread of infectious disease, HIV/AIDS Offense against children’s rights

-

X -

X X

X X X -

Programs, plans and strategies to be compared included the following:

- PEDSA (Strategic Plan for the Development of the Agricultural Sector)

- Niassa PEP (Provincial Strategic Plan) - Nampula PEP (Provincial Strategic Plan) - Zambézia PEP (Provincial Strategic Plan) - Green Revolution Strategy - EDR (Strategy of Rural Development) - Extension Master Plan

- PASAN (Strategy and Action Plan for Food and Nutritional Security)

- Irrigation Strategy - PROMER (Rural Market Promotion Program) - Reforestation Strategy - Soil Erosion Control Plan - Forest Fire Control Plan

Proposed master plan projects are now being analyzed from the viewpoint of environmental and social

considerations:

(i) Categorization of the projects according to Mozambican legislation

(ii) Identification of negative impacts and the methods of their measurement or estimation

(iii) Advice on the Terms of Reference of future EIA studies, including impact assessment, mitigation

measures and environmental management plans (monitoring, compensation, etc.).

- 28 -

Annex.1 Opinions and Requests expressed in the District-Level Meetings and Feedback

The stakeholder meetings at district levels were conducted for the purpose of disseminating correct

information on the programs and ask for opinions, questions and requests from the participants.

Province District Meeting with Consultative Council Meeting with Farmers Date Participants Date Participants

Nampula Monapo* 12 April 2013 16 12 April 2013 25 Muecate 13 June 2013 53 27 March 2013 68 Mecubúri 22 February 2013 43 4 March 2013 76 Meconta 28 February 2013 34 5 March 2013 104 Mogovolas 16 April 2013 50 3 April 2013 62 Rapale 21 February 2013 46 1 March 2013 61 Murrupula 1 March 2013 39 13 March 2013 46 Ribaué 9 April 2013 42 19 February 2013 88 Lalaua* 15 March 2013 36 15 March 2013 23 Malema 10 May 2013 39 19 March 2013 107

Zambézia Alto Molocué 27 February 2013 15 27 February 2013 78 Gurué 4 March 2013 13 28 February 2013 63

Province District Joint Meeting with Consultative Council and Farmers Date Participants

Niassa Cuamba 29 May 2013 81 Mecanhelas 22 May 2013 55 Mandimba 21 May 2013 84 N’Gauma 23 May 2013 84 Majune 23 May 2013 76 Chimbunila 20 May 2013 54 Sanga 24 May 2013 94

* A single meeting for council and farmers. Members and staff of the Study Teams were not counted.

TOTAL = 1,755 participants The expressed requests for clarification regarding ProSAVANA are summarized as follows. A) Basic concepts of ProSAVANA

A1. Clarification of terms (especially “small-scale farmer”), criteria or requirements for the selection

of potential beneficiaries

A2. Involvement of both individual farmers and associations as target beneficiaries B) Strategy for agricultural production increase

B1. Selection of crops with priority on food production for farmers’ self-consumption

B2. Importance of cotton and tobacco as traditional cash crops, and the mechanism of price-fixing

B3. Support for expansion of farmland through easier access to machinery (tractors, ploughs, etc.)

either through grants, rental or service providers

B4. Importance of intensification of production or increase in productivity

B5. Construction or rehabilitation of dams and other irrigation facilities, including provision of pumps,

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and wiser use of water resources to cope with water shortages

B6. Access to the soil analysis laboratory

B7. Protection of crops from wild animal attacks

B8. Better access to seeds in terms of quality, timing, price, grower (either by government or by the

private sector including farmers) and certification

B9. Better access to less expensive fertilizers and pesticides

B10. Solution for the lack of nearby shops that sell agricultural inputs

B11. Easier access to agricultural credit in terms of interest rate, guarantee, repayment period and

physical access point

B11. Improved technical assistance in terms of selection of crops or varieties, rainfall prediction and

timely sowing

B12. Training of extension workers (including female technicians), increase in the number and

support for means of transport

B13. Importance and possibility of large-sized animal husbandry and support for fish farming C) Land management

C1. Response to the worry or misunderstanding that ProSAVANA itself will occupy farmers’ land

C2. Protection of farmers’ land rights and support for the DUAT regularization process, which is

difficult for farmers and communities to understand

C3. Solution for land conflicts and prevention of future conflicts, both between farmers and between

farmers and outsiders

C4. Support for better understanding and widespread application of the Land Law, while respecting

customary occupation rights

C5. Solution for the disagreement on transfer of DUAT to investment projects without consultation

with farmers

C6. Right of using so-called “abandoned” lands

C7. Respect for sacred areas, cemeteries and ritual places without disturbing them

C8. Clearer explanation on how DUAT regularization will contribute to the transformation from

shifting cultivation to settled farming style D) Promotion of value adding

D1. Solution for the lack or remoteness of reliable markets and buyers, high cost of transport and

weakness in price negotiation, and expectation for mechanism of fixed price or fixed purchase

D2. Solution for the lack or remoteness of agro-processing factories, including those for conservation,

of vegetables, fruits, beans, potatoes and cashew nuts

D3. Response to the worry or misunderstanding that ProSAVANA is a business partner of the

investment projects that are already operating in the Nacala Corridor

D4. Increase and improvement of silos and other storage facilities

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D5. Improved roads from production places to markets

D6. Creation of steady jobs for local people by investment projects

D7. Improved modality of payment and repayment under contract farming

D8. Importance of support for family-level farming (not only concentrating on corporate farms)

D9. Clearer information of PDIF in terms of procedure, requirements, criteria and mode of repayment

D10. Improved communication between the company funded by PDIF and its out-grower farmers E) Sustainable use of natural resources

E1. Control of soil erosion

E2. Respect for EIA study results and their implementation

E3. Response on the worry about the impact of long-term use of chemicals on soil quality

E4. Harmonization with PDUT (district land-use plan) F) Human resources and social capital development

F1. Strengthening, reactivation and legalization of farmers’ associations, including women’s

associations

F2. Human resources development through training or capacity building

F3. Involvement of young people in agriculture and their training

F4. Adult education on reading, writing and counting

F5. Social infrastructure such as hospitals or schools as a social responsibility program

F6. Support for universities and vocational training schools G) Implementation mechanism and other issues

G1. Involvement of SDAE officers and technicians as key players

G2. Involvement of district administrators and consultative councils

G3. Expectation for quick commencement of implementation

G4. Disclosure of the total budget of ProSAVANA and budget for each district

G5. Assessment of the fiscal impact of ProSAVANA on the revenue of local governments

These points shall be considered in the process of formulating the draft Master Plan; and will be put

through a process of participatory discussion with regular reviews and dialogues with a wide range of

local stakeholders.

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Annex.2 Prospect of Population, Planted Area and Agricultural Production

The following two aspects might be important in discussions regarding agricultural and regional

development. They are 1) development of a farming system among small and medium scale farmers and

2) participation of private investment in the agricultural sector.

(1) Development of farming systems among small and medium scale farmers

It is confirmed as a principal of the development that

� Each farmer shall determine his own farming system and cultivate crops by his own decision.

� The ProSAVANA Program will support farmers who apply recommended farming systems and/or

crops in the Master Plan though project implementation in order to guide development of regional

agricultural in the direction defined in the Master Plan.

① Maintaining traditional shifting cultivation system

As precondition of the discussion that;

Ø From view point of sustainability of agriculture, fallow periods must be kept in same cycle.

Ø From view point of natural resource conservation, tree-cleaning practices for land reclamation

must be regulated.

Ø From the view point of food security, agricultural production (calorie base) must maintain a daily

value of 2,500 kcal/day/person in the region.

Therefore, if the planted area of a household is reduced due to increasing rural population in some

regions, the traditional shifting cultivation system may not be maintained in that region.

1) Expectation of rural population by 2030

In 2030, rural population in the target area is expected to be 1.46 times that in 2011.

0    

500.000    

1.000.000    

1.500.000    

2.000.000    

2.500.000    

Nampula   Niassa   Zambezia  Provine

Increase  of  Rural  Popula2on

2010/11 2020 2030

- 32 -

2) Expected planted area in 2030

The expected planted area of a household has been estimated premised on no land reclamation by

tree-cleaning and present shifting cultivation is continued.

As shown in the figures below, planted area of a household in 2030 is estimated to be half or less that

in 2011 in some districts such as Monapo, Gurué, Cuamba and Mecanhelas. This means that

continuation of the shifting cultivation would be difficult in those districts. Moreover, some of the

other districts are also expected to decrease the planted area of a household from 2011 to 2030, so that

it may difficult to maintain the shifting cultivation in these districts too in 2030.

3) Production, productivity and food balance

� In the case of continuous shifting cultivation till 2030, farming models of each district were

calculated in order to understand agricultural production per capita (calorie case), sales profit and

balance of supply and demand for major food crops.

� In the case of continuous shifting cultivation, production per capita in 2030 will be the same or

less than the present condition of 2011.

� The production per capita (calorie base) cannot satisfy the daily value per capita in 2030 (2,500

kcal/day) in Monapo, Rapale, Mecanhelas, N’Gauma and Lichinga because actual planted area

becomes smaller than 2011 due to population increase. Also in other districts, production will

decrease due to the same reason.

0,00    

0,50    

1,00    

1,50    

2,00    

2,50    

3,00    

3,50    

Mon

apo  

Mue

cate  

Mecub

uri  

Mecon

ta  

Mogovolas  

Nam

pula  City

/Dist  

Murrupu

la  

Ribaue

 

Lalaua  

Malem

a  

Alto  M

olocue

 

Gurue  

Cuam

ba  

Mecanhe

las  

Mandimba  

Ngaum

a  

Majun

e  

Lichinga  

Sanga  

Nampula   Zambezia   Niassa  

 Planted

 Area    (h

a/ho

useh

old)

Planted  Area  per  Household  

2030  ShiIing  CulJvaJon  2011  Present  Difficut  to  keep  shiIing  

ciulJbaJon  Jll  2030

- 33 -

� In the case of continuous shifting cultivation, total agricultural production in the target area by

small and medium scale farmers cannot satisfy regional total demand for major food crops.

� If we consider expected agricultural products from existing DUAT obtained area (corporate

farms), the regional demand is satisfied (excluding wheat and rice). Even considering this, it

cannot be said that regional food security is secured, because production from corporate farms is

usually aimed to use for various purposes, such as for sale outside the region or for non-food

purposes (for example poultry feed).

Crop

Shifting Cultivation in 2030 Agri DUAT Total

Planted Area (ha)

Production (ton)

Total Demand

(ton)

Balance (ton)

Planted Area (ha)

Production (ton)

Total Demand

(ton)

Balance (ton)

Planted Area (ha)

Production (ton)

Total Demand

(ton)

Balance (ton)

Maize 280,800 393,500 512,000 -118,500 65,250 163,100 0 163,100 346,050 556,600 512,000 44,600

Cassava 277,300 1,691,300 1,889,00

0 -197,700 0 0 0 0 277,300 1,691,300 1,889,000 -197,700

Sorghum 104,600 83,800 80,400 3,400 0 0 0 0 104,600 83,800 80,400 3,400 Beans 113,900 79,900 124,300 -44,400 0 0 0 0 113,900 79,900 124,300 -44,400 Ground Nut 68,300 47,400 65,600 -18,200 0 0 0 0 68,300 47,400 65,600 -18,200 Paddy 24,200 38,500 521,900 -483,400 0 0 0 0 24,200 38,500 521,900 -483,400 Soybean 5,200 6,800 0 6,800 65,250 163,100 0 163,100 70,450 169,900 0 169,900 Wheat 0 0 281,600 -281,600 0 0 0 0 0 0 281,600 -281,600 Vegetables 10,400 84,300 328,900 -244,600 0

0 0 10,400 84,300 328,900 -244,600

Others 66,000 130,500 196,500 Total 950,770 261,000 1,211,770

� Due to the above, if we consider improvement of the livelihood of farmers and food security, it is

necessary to apply agricultural development considering the transformation to settled farming.

② Transforming from shifting cultivation to settled farming

� This aims to increase production by increasing productivity (yield) and planted area.

� It also aims to increase profit by improvement of production quality/ diversity of agricultural

production (introduction of favorable cash crops).

0,00    

1.000,00    

2.000,00    

3.000,00    

4.000,00    

5.000,00    

6.000,00    

7.000,00    

8.000,00    

Mon

apo  

Mue

cate  

Mecub

uri  

Mecon

ta  

Mogovolas  

Nam

pula  City

/Dist  

Murrupu

la  

Ribaue

 

Lalaua  

Malem

a  

Alto  M

olocue

 

Gurue  

Cuam

ba  

Mecanhe

las  

Mandimba  

Ngaum

a  

Majun

e  

Lichinga  

Sanga  

Nampula   Zambezia   Niassa  

Prod

uc2o

n  in  kcal/da

y

Produc2on  per  capita  

2011  Present  2030  SiIing  CulJvaJon  

Daily  Value  per  Capita  in  2030  (2,500  kcal/day)

- 34 -

1) Total Production

In the case of transformation to fixed cultivation by 2030, farming models for each zone were

calculated in order to understand the increase of yield, planted area and production.

More agricultural input investment is required in

2030 compared with 2011. However, because of this,

total production is increased in each zone. The result

is that productivity is increased and the profits of

households are increased too.

Based on this explanation, it will be clarified in

discussions about the direction of agricultural

development that acceptance of the transition of the

farming system from shifting cultivation to settled

farming is necessary and the major uncertainty and

doubt for the transition will be put to rest.

0,0   5,0   10,0   15,0   20,0  

Maize  Cassava  Sorghum  

Beans  Ground  Nut  

Paddy  Soybean  Wheat  

Vegetables  Others  

Expected  Yiedl  (ton/ha)  

Expected  Yield  of  Crops

2011Shifting  Cultivation  2030  Settled  Farming  

0,00    

0,50    

1,00    

1,50    

2,00    

2,50    

3,00    

3,50    

Nampula     Zambezia   Niassa  

Average  Area  (h

a/ho

useh

old)

Averagef  Planted  Area  per    Household  

2011 Present 2030 Sifting Cultivation 2030 Settled Farming

0    5.000    

10.000    15.000    20.000    25.000    30.000    35.000    

2011   2030   2011   2030   2011   2030  

Nampula   Zambezia   Niassa  

Tota

l Pro

duct

ion

Valu

e (Mt

/Ho

useh

old)

Total  Produc2on  Value  Cashew  Sale  (d)  Agri.  Product  Sale  (a)  

0    

5.000    

10.000    

15.000    

20.000    

25.000    

30.000    

35.000    

2011   2030   2011   2030   2011   2030  

Nampula   Zambezia   Niassa  

Inpu

t  Cost  (Mt/Ho

useh

old)

Agricultural  Input  Cost  

0    5.000    10.000    15.000    20.000    25.000    30.000    35.000    

2011   2030   2011   2030   2011   2030  

Nampula   Zambezia   Niassa  

Prof

it (M

T/Ho

useh

old)

Profit  of  Produc2on  

- 35 -

Annex.3 Project Components of ProSAVANA- PI & ProSAVANA-PEM

1. Pro SAVANA –PI

Project for Improving Research and Technology Transfer Capacity for Nacala Corridor Agriculture

Development, Mozambique.

(1) Objective

Appropriate agricultural technology is developed and transferred in Nacala Corridor.

(2) Outputs

1) Operational capacity of IIAM (Agricultural Research Institute of Mozambique) Northeast and

Northwest research centres is strengthened.

2) Natural resources and the environmental impact resulting from the use of new agricultural

technologies and socio-economic conditions in the Nacala Corridor are evaluated.

3) Soil improvement technologies for agricultural use in Nacala Corridor are developed.

4) Appropriate cultivation technologies and livestock production of Nacala Corridor is developed.

5) New agricultural technology is developed and validated, and implemented in the demonstration units.

(3) Activities

1) Operational capacity of IIAM Northeast and Northwest research centres is strengthened. The

component will promote the research capacity of the Experimental Stations of Lichinga and Nampula,

through the training of the IIAM staff assigned at these stations, the modernisation of physical

infrastructure and equipment, as well as through national research programmes implemented in the

region.

2) Natural resources and the environmental impact resulting from the use of new agricultural

technologies and socio-economic conditions in the Nacala Corridor are evaluated. The component will

develop the necessary studies to qualify, quantify and analyse the natural resources and regional

socio-economic aspects, and to develop methods to evaluate the possible socio-economic impacts of

the project, proposing mitigation measures required.

3) Soil improvement technologies for agricultural use in Nacala Corridor are developed. The component

will develop studies for soil improvement technology including conservation technology.

4) Appropriate cultivation technologies and livestock production of Nacala Corridor is developed. The

component will finance and promote the development and transfer of technologies and varieties

- 36 -

appropriate for the Nacala Corridor through the assessment and analysis of materials available in

Mozambique, as well as the possibilities of introducing improved varieties and micro-organisms by

the related institutions through the funding of the research project.

5) New agricultural technology developed and validated is implemented in the demonstration units. The

component will develop the implementation of two demonstration units in areas near the stations of

Lichinga and Nampula, which will include appropriate technology for farmers in emerging and

transitional conditions. It will also develop a Decision Support Model applicable for farmers to select

an appropriate cropping system.

(4) Duration

April 2011 to March 2016 (5 years)

2. ProSAVANA – PEM

Project for Establishment of Development Model at Communities’ Level with Improvement of Rural

Extension Service under Nacala Corridor Agricultural Development in Mozambique

(1) Objective

Agricultural production increases at each farming size by adoption of the agricultural development models

in the target areas of ProSAVANA.

(2) Outputs

1) Agricultural development models for increasing agricultural production in accordance with farming

size are materialized and implemented in the target areas of ProSAVANA.

2) Accessibility and quality of agricultural extension services is improved in the target areas of

ProSAVANA.

(3) Activities

0-1. Comprehend current situation of social economic aspects, agriculture/farming and

public/private/NGO’s agriculture extension services in the target areas of ProSAVANA.

0-2. Prepare annual work plan for the Project.

0-3. Carry out baseline survey and periodical survey.

1-1. Define development models and formulate reference projects to be implemented.

1-2. Select target groups, areas and partners for the reference projects.

1-3. Implement, monitor and evaluate the reference projects.

1-4. Engage public/private/NGOs in the reference projects to contribute with the Activity 1-5.

- 37 -

1-5. Recommend potential agricultural development models based on the reference projects.

1-6. Support implementation of the agricultural development models in the target areas of ProSAVANA.

1-7. Compile public policy recommendation(s) to promote the potential agricultural development models

for sustainable rural development.

2-1. Identify and select potential stakeholders in the target areas of ProSAVANA to engage in promoting

agricultural development models.

2-2. Establish extension methodologies in the target areas of ProSAVANA.

2-3. Prepare guidance materials for promoting extension services of the agricultural development models

in the target areas of ProSAVANA.

2-4. Conduct trainings and/or OJTs for public/private/NGOs agricultural extensionists and agricultural

producers.

2-5. Support and promote extension services by public/private/NGO’s agricultural extensionists.

2-6. Compile public policy recommendation(s) for the improvement of the extension services for

sustainable rural development and reflect it/them in the provincial strategies.

(Descriptions above are contents of the Project Design Matrix, R/D ProSAVANA-PEM, January 2013.)

(4) Activities

May 2013 to May 2019 (6 years)