AFD plans, jointly with the EU, to implement an access-to-finance project for Mozambican smallholder farmers and rural-agricultural SMEs. To support AFD in defining the objectives, scope and means of the project, IPC was commissioned to conduct a feasibility study to analyse supply and demand as well as highlight the potential for investments in small-scale farming and rural SME structures in Mozambique.

IPC’s experts implemented the following tasks:

• developing work plan and methodology for exploratory study and feasibility study
• conducting a general analysis of relevant sectors and the local context
• assessing financial needs/constraints of small-scale farmers, rural/agro SMEs

• evaluating the main formal FIs involved in financing small-scale farmers and rural-agro SMEs
• researching the main IFIs, donors, funds and available credit lines (incl. government programmes)
• conducting sector mapping, including agricultural value chain financing and regional/local context aspects
• drafting an exploratory study in English
• defining innovations, beneficiaries, a financing package and eligibility criteria
• conducting interviews with relevant stakeholders
• formulating recommendations on the rural-agro investment potential, tools and incentive structures
• drafting the feasibility study in English, including recommendations