Crop: Multiple crops
Geographic scope: The Beira Corridor, Mozambique
Active Countries: Mozambique
Initiated in 2010
The Beira Agricultural Growth Corridor (BAGC) was created to promote investment in commercial agricultural and agribusiness within the Beira Corridor (Tete, Sofala, and Manica Provinces), Mozambique.
Members: The Government of Mozambique, private investors (international and regional private sector members from financial institutions, investment companies, and those from the trading and energy sectors), farmer organizations and international agencies (including the Alliance for a Green Revolution in Africa, the Department for International Development, the International Finance Corporation, the Helett Foundation, Norfund, the Norwegian and Dutch Embassies in Mozambique, SNV, the World Bank, and Young Africa).
Lack of infrastructure, reduced agricultural productivity and competitivenes
The Beira Agricultural Growth Corridor (BAGC) initiative began at the World Economic Forum in Davos, January 2009. It acts as a focal point for creating partnerships between the above stakeholders. The platform identified four key challenges to sustainable commercial agricultural development: appropriate financing mechanisms, investment in productive infrastructure, strong commitment from stakeholders, and effective mechanisms for coordinating and implementing investments.
Intentions and aspiration
To boost sustainable commercial agricultural development in Mozambique and the wider region
The BAGC initiative aims to support commercial agricultural development, targeting farmers—especially smallholder farmers. The platform’s mission is to ensure coordination between the public and private sector along the value chain, to leverage existing investment, develop new infrastructure and commercially viable agricultural projects, to support services (especially production inputs), financial services, and extension services, and to support investment to provide a suitable business environment for investors who are interested in engaging with small and medium-sized farming.
Arrangements and capacitities
The platform is governed by two institutional pillars: (i) the BAGC partnership, managed by a full-time secretariat, and (ii) the BAGC catalytic fund, managed by AgDevCo on a cost-recovery basis. The partnership is composed of
- Mozambique government agencies,
- an international consortium of private-sector companies,
- local private-sector actors—including national and district-based farmers’ organizations, input companies and stockists, finance institutions, field projects and programs—and
- NGOs and private sector service providers.
The partnership secretariat acts as a coordinating body regarding operational support for partnerships and bringing together stakeholders. It also lobbies government and development partners in order to address key constraints, implements programs funded by development partners, and advises the catalytic fund on use of funding for smallholder farmer development programs.
Activities and outputs
The main services the platform provides with the use of the private sector for enhanced productivity and investment of the Beira Corridor is the catalytic fund and the smallholder facility. The fund helps kickstart early-stage businesses into commercially viable agriculture. The business must ensure that it directly benefits smallholder farmers and local communities. It aims to demonstrate that a profitable agricultural business is possible with social benefits. The smallholder facility supports the implementation of practices and initiatives that lead to the development of sustainable and replicable models of smallholder market inclusion. Grants will be given to those that one-off investment that is used to address constraints enables smallholder farmers to increase their incomes in a sustainable way, without the need for subsidies.
Monitoring and evaluation
The Secretariat monitors and evaluates the impact of BAGC (including investments by the catalytic fund)