The European DFI Playbook for Mozambican agriculture must evolve by focusing on the 3 million smallholder farmers currently operating outside the formal financial system. While Mozambique boasts 36 million hectares of arable land and 81% of the population involved in agriculture, this sector remains largely informal despite the existence of 25 million mobile money accounts.
A New Strategy
The digital-first approach is essential for the future. By channeling resources through fintech, we can digitize the smallholder farmer, providing the vital data needed for future credit scoring and formal lending structures. With $35 billion in annual mobile money volume, the baseline for digital economic activity is already established. European DFIs possess the capital and moral clarity to turn this data into development. It is time to update the playbook to reflect the digital reality of modern Mozambique and invest in the human capital that will secure our agricultural future.
The Smallholder Season
For a smallholder farmer in Zambezia, the season begins with access to necessary inputs. Through our partnership with the COJAZ cooperative, Maputo Bridge Capital, founded by Anselmo Boaventura in Fort Worth, Texas, connects sponsors with these farmers. A sponsor gives from $25, which goes directly to the farmer's local seed and fertilizer shop. The sponsor receives receipts and field photos as verification. After the harvest, farmers repay into a Community Fund that helps sponsor the next farmer, creating a cycle of support. Note that 92% of contributions go to the shop, while 8% covers verification and documentation costs.
Frequently asked questions
What is the role of mobile money in Mozambique's agriculture? It serves as a baseline for digital activity, with $35 billion in annual volume that could potentially support formal financial inclusion.
How many farmers currently operate outside the financial system? There are approximately 3 million farmers in Mozambique who continue to operate outside of the formal financial system.
Why is a digital-first approach necessary? It helps digitize smallholder farmers, creating the data necessary for future credit scoring and formalizing their integration into the broader economy.
To learn more about our efforts to support local growers, you can meet the farmers or explore how to help farmers in Mozambique.
If you would like to support a farmer, you can sponsor a farmer from $25. Please note that sponsorships are gifts, not investments, and are not tax-deductible.
