INCLUSIVE DEVELOPMENT WITH SPECIAL CONSIDERATION TO SMALL-SCALE FARMERS: ADDRESSING LAND RIGHTS ISSUES IN THE NACALA CORRIDOR, NORTHERN MOZAMBIQUE March 23-27, 2015 Masahiro TAWA, Shinjiro AMAMEISHI, Takuma NOGUCHI, Shunsuke TAMURA Rural Development Department, Japan International Cooperation Agency, Japan Amameishi.Shinjiro@jica.go.jp Disclaimer: This Paper and Presentation is the result of analysis of authors. However, the paper and the presentation does not purport to represent the views of the official understanding of JICA, Ministry of Agriculture in Mozambique, Brazilian Agency of Cooperation and other related organizations.

Importance of Small-scale Farmers Rapid population growth 　 (2011: 7 billion → 2050: 9 billion) → Growing needs of foods → may lead to an instable food security in the world 56% of land is owned by small-scale farmers → Developing their capacities are crucial for sustainable food security　

Agricultural Development together with Small –scale Farmers and Private sector ▼Challenges of small-scale farmers ・Limited financial capacity, limited access to inputs ・Lack of market access ▼Strong points of private companies ・Funds, Inputs (Quality Seeds, Fertilizers, etc) ・Know-how of marketing and technology ↓ ☆Farmers and private companies can have win-win partnership ～Benefits for small-scale famers are essential for improvement of their livelihood and food security～

Agricultural Development together with Small –scale Farmers and Private Sector But… Some investments by private companies are criticized as “Land Grabbing”; Necessary for proper setting and guidelines for inclusive agricultural (private) investment (in aligned with PRAI, VGGT, rai, etc), and monitor their performance.

ProSAVANA Nacala Corridor: ProSAVANA: Triangular Cooperation Program for Agricultural Development of the Tropical Savannah in Nacala Corridor, Mozambique (Mozambique, Brazil and Japan) Improve livelihood of inhabitants of Nacala Corridor through inclusive and sustainable agricultural and regional development Nacala Corridor: High potential for Agricultural development Adequate rainfall, vast land, water resources and Close access to city

ProSAVANA Nacala Corridor Population: 4,285,000. Area: 107,002 km2 - Higher rate of poverty than other area in Mozambique GNI per capita; 510 USD Please, speaker should be careful when talking about area of Nacala Corridor in order not to confuse with area of ProSAVANA.

Key Indicators Agriculture production must increase to guarantee food for the growing population

Land Use in Mozambique Co-existence of modernized law system and customary practices Land use based on customary practices → Potential for conflicts between farmers and private companies and/or among farmers Increasing agricultural investments and growing population ↓ Securement of land use rights is necessary to safeguard farmers’ rights Land rights are not invisible, they exists and are set into a regulatory law! It is not OK for JICA to state in a WB conference that land conflict exists in Mozambique.

Issues for agricultural development ProSAVANA Issues for agricultural development in Nacala Corridor ▼ About 90% are small-scale farmers ▼ Limited access to agriculture technologies by farmers ▼ Limited access to agricultural inputs (fertilizers, improved seeds, machinery, etc) by farmers ▼ Underdeveloped agricultural finance ▼ Insufficient agricultural extension services ▼ High potential for agricultural development 　　→Attractive conditions for private investments

ProSAVANA ProSAVANA fosters Productivity, production and increase of agricultural products diversity; Commercialization and development of the distribution and agricultural products processing industries; Provide inputs to farmers that allows the production increase for the benefit of the farmers; Sustainable use of the natural resources and the land, as a way to garantee a regional stable and sustainable agriculture development for the future; Introduction of new crops and technologies that improve the farmers income; Development and support to the creation of value chains in the Nacala Corridor.

Contract Farming ProSAVANA is analyzing contract farming schemes. Private companies provide agricultural technology, seeds, and inputs to farmers under contract. Farmers grow a crops and companies sell them in a market. Farmers have ownership of their farming. ～ respecting of their rights Contract farming helps small-scale famers improve their farming skills (productivity and production) . ↓ Improving famers’ income, livelihood and food security First suggestion is to exclude this contract farming slides and mention the models under PEM. It is better not say that ProSAVANA is promoting in that forum because there is no decision taken by the three parties on the encouragement of this under trilateral basis. The agreements are that contracting farming (under DIF) will be a reference (pilot project) that would be considered in the future as an initiative under ProSAVANA. Saying that may impact in case this presentation will be made available to the public (please refer to the Nacala Fund presentation or the presentation made by ABC about the 14 million ha.)

Contract Farming ▼ Outcome ▼ Lessons / Challenges ・ Sales per farmer show an upward trend ・ Agricultural technologies have been improved among participated farmers ▼ Lessons / Challenges ・ Payment to famers was delayed by private companies ・ Quality of products is unstable 　　　　Further technical improvements are needed.

ProSAVANA: Putting Ｉmportance on Farmers’ Right ProSAVANA protects assets and land rights of small-scale farmers first, and seeks to improve their livelihood. ProSAVANA guarantees farmers’ own decision-making through sufficient consultations and dialogues between farmers and private companies.

ProSAVANA: Putting importance on Farmers’ Right ▼ JICA is supporting developing a Guideline for responsible and inclusive agricultural investments under Mozambique laws and local circumstances. ▼ Once the Guideline is developed, ProSAVANA will have seminars to investors and government staffs. It is too soon to say that ProSAVANA plans to set up an independent organization to monitor the execution of guidelines in investment projects. This is not function of ProSAVANA, but the Government of Mozambique itself. It is not good to advance any information on this issue yet. In fact, all references of this issue was removed from Draft Zero of PD.

ProSAVANA: Putting importance on Farmers’ Right ▼ The ProSAVANA guideline promotes mutual trust between investors and farmers, and protect famers’ rights. ↓ Improves the livelihood of small-scale farmers. Third photo was removed because it is not example of Small scale farmers, but officials from DPA and SDAE and SPER under training on ProSAVANA-PD.

Conclusion Lessons learned: Proper consultations and dialogues between local communities and private sector are important at each stage. Challenges: Capacity development (Farmers, Private Sector, Governments) Monitoring the progress of the projects For implementation of ProSAVANA: Promoting a careful and sufficient consultations and dialogues between small-scale farmers and private companies. Incorporating opinions of farmers and civil society into the projects

Thank You For Your Attention