Promotion of local companies in Mozambique and their suppliers

Since 2015, we have been supporting local companies in increasing their competitiveness and the inclusivity of their business model as part of a GIZ business development program. We consider improved competitiveness to have been achieved if at least three of the five factors are met in the course of the partnership: 1) increasing turnover, 2) increasing production, 3) reducing costs, 4) expanding the product range, and 5) access to new markets. In terms of inclusivity, we are looking to ensure that the improved competitiveness benefits smallholder farmers in particular, who market their products to the companies in rural Mozambique with whom we cooperate. This “benefit” is then expressed, for example, in the fact that the farmers receive an increased income, longer-term contracts and thus planning security or a deeper knowledge of the market and thus an improved negotiating position.

 

 

 

The projects planned and financed together with the companies focus primarily on improving the farmers’ production conditions in order to put them in a position to supply products of good quality and in sufficient quantities. Measures often lie in the area of technical qualification “What do I need to consider if I want to grow biodynamic sugar?” They address business management issues and requirements and strive to improve access to financial, human or material resources. The dissemination of innovations, particularly in the use of digital solutions, is a key issue in many projects. The introduction of simple things like barcodes increases transparency and traceability in supply chains. Through more reliable suppliers and digital solutions also the purchasing companies improve the competitiveness. This is further increased by intensified cooperation with other companies in the sector and matchmaking with international buyers.

 

 

 

Beyond the immediate issues of short-term profitability, we always keep an eye on the development of sustainable solutions. This implies, for example, the resource-conserving cultivation of fields or long-term farmer independence by striving to diversify the products grown in order to avoid dependence on singular supply chains. Of course, the fair structuring of contractual relationships and the strengthening of smallholder organizations are also a focus. We also deal with issues of gender-equitable management and try to integrate the topic of health prevention as far as possible at a low threshold. Our aim is to establish economic structures in which both women entrepreneurs and farmers’ organizations can cooperate successfully with each other within the framework of a professional, self-confident and satisfying business relationship. Over the years, we have implemented more than 40 local projects that follow these principles and are mutually beneficial for smallholder farmers and businesses.

 

 

Since the beginning of 2021, we have also been promoting the use of sustainable energy systems at the companies participating in the program. The measures include the installation of photovoltaic systems in cooperation with private investors, the increase of energy efficiency through energy audits and the promotion of sales and financing models for small-scale energy systems such as solar irrigation.