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Integrated Growth Poles, Mozambique

The US$106M Integrated Growth Poles Project will improve rural employment and economies in central and northern Mozambique. The World Bank-funded initiative focuses on improving the ability of smallholder farms and micro, small and medium enterprises (MSMEs) in high growth potential zones around the Zambezi Valley and Nacala Corridor to access markets through private and complementary public investments.

Utilising investment opportunities is essential if we are to bring about socioeconomic change and ultimately improve living and working conditions among Mozambique’s rural population.

Key facts

54% of the population in Mozambique lives below the poverty line.
The country’s high economic growth rates are largely driven by capital-intensive projects.
Around 70% of Mozambique’s population lives in rural areas.

Challenges

Mozambique has achieved impressive economic growth, but this has not resulted in lower poverty rates. The growth is largely driven by capital-intensive projects and mostly concentrated in urban areas and in the south of Mozambique.

The Zambezi Valley and Nacala Corridor are identified as high growth potential zone (growth poles) with the aim to establish business linkages between smallholder farms, MSMEs and the agribusiness value chains.

To support these linkages, the US$34M Innovation and Demonstration Catalytic Fund (IDCF) project has been developed under the Integrated Growth Poles Project. The project focuses on the growth potential of small holders farms and MSMEs that can benefit from the large investment projects in the central parts of the country.

Solution

IDCF is being managed by the Zambezi Valley Development Agency and the Special Economic Zones Office in the Nacala Corridor with support from us. We work closely with organisations, sharing knowledge and experience to attract and develop significant capital investment and create related jobs and income.

The establishment and management of an efficient, effective and transparent Innovation and Demonstration Catalytic Facility (IDCF) ensures that new innovative activities can be realised by building partnerships between economic stakeholders, including production and service companies, private investors, financial institutions, local authorities and public institutions.

Value and benefits

The concept of growth poles is to create synergies with existing projects and to leverage private and public sector investments.
By managing the IDCF investments, we will help to increase the number of smallholder producers who are able to enter the new and demanding markets in the Zambezi Valley and Nacala Corridor.
The investments are also expected to increase the number of skilled workers and the range of skills available in the local labor market.
We will play a key role in stimulating innovative and effective approaches that will contribute to a more competitive market place, allowing the ultimate beneficiaries – rural households – to have a real choice and a realistic price.
Targeted investments will lead to more inclusive economic growth.