Principles for Responsible Agricultural Investments

Lessons Learned from Rei do Agro and others in Mozambique.

Chishamiso Mawoyo - Norfund

Very good

PRAI Stakeholder Performance Review

Satisfactory Rei do Agro Other Investors Government Community

Needs Improvement

National Provincial + Localidade

Employees 3rd Parties +

Business Community

Principle 1: Land + natural resources rights Very good Needs Improvement Very good Very good Very good Satisfactory

Principle 2: Investments strengthen food security Very good Very good Very good Needs Improvement

Very good Satisfactory

Principle 3:

Proper processes for investment in agriculture: transparent, monitored, & ensure accountability by all stakeholders.

Needs Improvement

Needs Improvement Needs Improvement

Needs Improvement

Needs Improvement

Needs Improvement

Principle 4: Agreements + consultations - recorded + enforced for all affected.

Very good Very good Very good Very good Very good Very good

Principle 5:

Investors/projects respect rule of law, reflect industry best practice, are profitable, & result in sustainable shared value.

Very good Needs Improvement Needs Improvement

Very good Satisfactory Satisfactory

Principle 6: Investments for positive social & distributional impacts. No vulnerability.

Very good Satisfactory Needs Improvement

Very good Satisfactory Satisfactory

Principle 7: Environmental impacts. Sustainability. Minimizing/mitigating risk.

Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

PRAI’s where Rei do Agro Performed well

PRAI 1 – Existing land + natural resource rights observed

• Good understanding + application of Mozambican land law.

• Performed + recorded transparent & extensive community consultations.

• Performed immediate census of farms inside our DUAT for compensation: – Agreed Ha’s + signed off.

– Kept records well of i)Measured + agreed Ha’s, ii)Amounts paid

• Involved local leadership in measuring land + in payment sign-off – Had 4 signatures on each pay-out sheet: i)Regulo/Chefe de Posto, ii)SDAE

Representative, iii)

PRAI 4 – Agreements + consultations – recorded & enforced

PRAI’s where Rei do Agro Performed well – PRAI 1 + 4

PRAI’s where Rei do Agro Performed well – PRAI 1 + 4

PRAI’s where Rei do Agro Performed well – PRAI 1 + 4

PRAI’s where Rei do Agro Performed well – PRAI 1 + 4

PRAI’s where Rei do Agro Performed well – PRAI 1 + 4

PRAI’s where Rei do Agro Performed well

PRAI 5 – Investors respect laws, use best practice + create sustainable shared value.

• Created good win-win outgrower systems; maximizing shared value: – Hired a fulltime experienced Outgrower Mgr - selected good outgrowers

– Trained outgrowers - agronomic + basic budgeting/business mgt skills.

– Helped them grow their yields + Ha’s + profits.

• Provided outgrowers with new hybrid good quality seed + inoculant – Assisted with land prepping + planting with our tractors + implements.

– Helped with record-keeping + harvesting.

• Guaranteed a market for outgrower produce at ruling market price.

• Rewarded our best workers with bicycles as performance incentives

• Created a workers committee/Syndicato and trained its leaders

PRAI 6 – Investments for positive social + distributional impacts. No vulnerability.

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s where Rei do Agro Performed well – PRAI 5 + 6

PRAI’s – Takeaways for Better Results

1. Team work is essential for successful growth + profitability + sustainability in Agricultural investments.

2. Patient + appropriately structured capital

3. Patient but progressive strategies

4. High level cooperation + alignment + consistency, between: – Government agencies/policy frameworks. – Financiers/investors. – Entrepreneurs/project developers.

5. Accountability + performance are key.

Thank You!