FTF Premier – Oholo (PRO) Project
Location
Nacala Corridor
DURATION
2022 – 2027 ( 5 years)
DONOR
United States Agency for International Development (USAID) & Swiss Agency for Development and Cooperation (SDC)
GRANT
$32.2 million
THEMATIC AREA(s)
Market Systems Development;
Food processing; food security and capacity building in financial skills
IMPACT GROUP(S)
Micro, small and medium enterprises (agricultural and non-agricultural), business associations, BDS providers, women and youth, SHF and farmers groups
Introduction
FTF Premier-Oholo (PRO) is $32.2 million project, jointly funded by USAID, through FTF Premier activity, and SDC’s Oholo Program. The project will increase incomes and jobs for young women and men in northern Mozambique, leading to a more competitive, inclusive, resilient, and sustainable market system that reduces poverty and increases food security. The project will run until June, 2027.
The objective of the PRO will be to increase economic opportunity for youth and women in northern Mozambique. PRO will achieve this by facilitating the growth of private sector MSMEs alongside large companies. MSMEs have the potential to drive broader local economic growth and to employ youth and women so they can improve their livelihoods in a dignified way. In turn, large companies have the potential to invest in inclusive business models and expand access to markets and trade for MSMEs, farmers, and women and youth.
PRO aims to catalyze a more competitive, inclusive, resilient, and sustainable market system that reduces poverty and increases food security for over 110,000 individuals, 40% of whom are women and 50% of whom are youth. The program will generate $59 million in annual sales by supported firms and farmers.
Adopting a sustainable market systems development approach, PRO aims to address constraints within the market system for youth and women entrepreneurs and MSMEs, including by strengthening the BDS support function, as well as improving linkages with larger market actors and other supporting functions such as financial institutions.
Objectives of the FTF Premier – Oholo (PRO)
The objective for PRO will be to increase economic opportunity for youth and women in northern Mozambique, leading to a more competitive, inclusive, resilient, and sustainable market system that reduces poverty and increases food security. PRO will work through four complementary workstreams to increase incomes and employment opportunities and strengthen youth development and women’s empowerment in the Nacala Corridor:
- Increase profitability of private sector enterprises by improving their knowledge of business and financial management through the delivery of core business technical assistance (CBTA).
- Strengthen and expand access to markets and trade for farmers, MSMEs, and women and youth by supporting large companies to adopt inclusive business models, access improved market services, and benefit from policy and enabling environment changes.
- Increase access to financial services for farmers, MSMEs, and women and youth by supporting financial institutions and private sector actors to offer inclusive access to finance solutions.
- Increase access to BDS for MSMEs and women and youth, building on the Oholo inception phase to strengthen delivery and accessibility of long-term, market-oriented products and services to MSMEs and entrepreneurs.
Implementation strategy:
Using the Market Systems Development approach, PRO works with businesses and agricultural sectors to facilitate systemic change by helping them adopt new ways of doing business and delivering services to the PRO targeted beneficiaries (smallholder farmers, Business Development Services (BDS), Micro, Small and Medium Enterprises (MSMEs), youth and women). The PRO strategy is a balanced effort between working with businesses directly, improving processes for systemic change and the development of the local BDS sector which will ensure the project sustainability.
Related to the systemic change, PRO will replace the (inter)national BDS providers with the local BDS providers. While the local BDS market grows and matures, PRO has identified specific Market System Development (MSD) intervention strategies to deliver systemic change in the following areas:
- Input Distribution Network: PRO will focus on two strategic areas, being the expansion of distribution networks using innovative solutions to the last-mile and the strengthening of agro-dealers capacity through BDS support.
- Supply Chain Management: PRO will promote and scale up suppliers’ clubs to establish long term relationships with output buyers, which will lead to improved terms of trade for the smallholder farmers.
- Aflatoxin reduction: PRO will engage key partners to train BDS who will then replicate aflatoxin reduction training to the SHFs groups and associations.
- Agro-Processing: PRO will further support and encourage agro-processing initiatives through specific grants targeting the agro processing industry to encourage further investments.
- Route to Market: PRO will prioritize trade facilitation to improve access to market for the MSMEs.
- Access to Finance: PRO will work in partnership with financial institutions to facilitate access to finance for MSMEs and increase their provision of financial services.
Expected Results. PRO will achieve:
- 112,000 beneficiaries (40% women and 50% young people) 2,600 jobs created;
- 2,600 jobs created;
- 30% increase in income for supported beneficiaries ;
- 1,600 micro, small and medium-sized enterprises participating in project activities;
- 15 million dollars of private sector investment leverage;
- A network of BDS providers established;
- 65,000 tons of additional nutritious food sold locally;
