Cyclone Eloise has destroyed 138Â 000ha of agricultural land in Mozambique. Yet, its potential to become a regional player in food production should not be underestimated, argues Grace Goodrich, the editor of Africa Oil & Power.
With fertile river valleys, expansive coastal lowlands and the prolific Zambezi River as a source of irrigation, Mozambique is considered a mecca for crop cultivation, with climatic conditions catering to a diverse range of agricultural products.
Agriculture represents the second-largest sector of the economy, accounting for more than 25% of GDP and employing 80% of the labour force. This is supported by staple crops including maize, cassava, rice, nuts, cotton, coffee, sugar and tobacco.
Maize and cassava, for example, are grown by 80% of all Mozambican small-scale farmers. It makes up more than one-third of cultivated land.
Yet the sector remains confined to subsistence farming largely due to a lack of investment. This impedes the development of critical infrastructure required to extend farming practices outside of the individual household.
|
|
In fact, smallholder farmers in Mozambique account for 95% of agricultural production. Roughly 400 commercial farmers – primarily producing sugar, soybeans, bananas, rice, vegetables, nuts, cotton and tobacco – account for the remaining 5%.
With only 16% of land suitable for farming currently being cultivated, Mozambique boasts considerable potential for large-scale, industrialised farming. This is for both in-country and regional export.
From net importer to net exporter
A key constraint to the development of commercial agriculture in Mozambique is limited infrastructure. This includes insufficient roads, railway and ports, antiquated farming practices and high vulnerability to drought, floods and cyclones. It leaves the sector susceptible to external shocks.
However, while the discovery of Mozambican gas has accelerated energy infrastructure growth, domestic transport and logistics sectors remain underdeveloped. This leads to longer lead times and higher costs associated with storage and warehousing.
ALSO READ: SA grains could save Moz from food crisis
Moreover, limited electricity access and high fuel prices can increase production costs by 10-20% per kilogram. The country relies on imported refined petroleum derivatives.
To render small-scale farmers more resilient to climate change and improve farming techniques, resource-smart technologies have been implemented.
This includes drip systems, pumps, ultraviolet plastic filtration and post-harvest storage. Implementation was met with intermediate success, yet sustained knowledge and technology transfer remains needed.
Despite its considerable export potential to the wider region, Mozambique carries a significant trade deficit. It imports capital-intensive goods such as farming and transport equipment, along with processed produce, meat and livestock.
This mainly comes from its Southern African Development Community neighbours.
Integrated value chains that facilitate the manufacturing of cash crops – cashews, tobacco and sugar – stand to generate in-country value.
This can be done by refining raw agricultural goods into consumable products and establishing domestic and regional consumer markets.
Improved access to financial services and credit would also serve to alleviate rural poverty and drive financial inclusion. Smallholder farmers and small- and medium-sized enterprises should grow their businesses and access critical capital for improved farming technologies.
“With enhanced crop efficiency and the early seeds of a downstream and manufacturing industry, Mozambique could serve as a regional player in food production.”
Ongoing gas monetisation initiatives in Mozambique have a direct impact on the scale and expansion of industrial agriculture in the country, in addition to the potential that gas-to-power offers to power irrigation pumps, dry crops, heat greenhouses and so forth.
Aiming for zero hunger
President Filipe Nyusi has positioned natural gas as a means of generating long-term economic diversification, skills development and job creation. This is across energy, agriculture, agro-processing, manufacturing and construction sectors.
However, Nyusi’s focus on agro-industry and agro-chemistry seeks to achieve “zero hunger” in the country through the cultivation of self-sufficient farming and improved access to infrastructure.
More specifically, natural gas offers the ability to reduce costs of food production (and importation) and establish large-scale industrial farming through the development of locally manufactured chemical fertilisers.
Natural gas – of which Mozambique holds 100 trillion cubic feet of recoverable reserves – plays an integral role in fertiliser production, as it is used as a primary raw material for the production of liquid ammonia and resulting carbon dioxide gas, which is then combined to create urea fertiliser.
Fertilisation is key
In conclusion, fertilisation not only improves crop yields, but also boosts agricultural profitability and nutrient density.
With enhanced crop efficiency and the early seeds of a downstream and manufacturing industry, Mozambique could serve as a regional – and even international – player in food production and security, a transition facilitated by the African Continental Free Trade Area that widens the reach of domestic agriculture and industry.
For import-dependent African countries like Mozambique, food and energy security have risen to the forefront of the national agenda in the wake of Covid-19 and disruptions to regional and global supply chains.
Grace Goodrich is the editor of Africa Oil & Power.
|
|
