The Beira Agricultural Growth Corridor (BAGC) initiative is a public private partnership between the Government of Mozambique, private investors, farmer organisations and international agencies. The concept of a Public Private Partnership was launched at the UN General Assembly meeting in New York in 2008 and in 2010 BAGC was launched to promote increased investments in commercial agriculture and agribusiness within the Beira Corridor (Tete, Sofala and Manica Provinces).The primary objective is to alleviate the systemic problems in that hinder the sustainable development of commercial agribusiness, in particular the lack of infrastructure, technical support services, high costs of inputs and finance and the lack of effective routes to market.
BAGC’s long-termaim is to expand and develop the Beira Agricultural Corridor as a cohesive, modern commercial agricultural area. The outcomes will be to simultaneously foster growth in modern, commercial agriculture as well as generating a new force for rural development, improved food security and poverty reduction.
BAGC has identified six objectives to boost agricultural productivity and competitiveness:
- Investments in productive infrastructure: Inadequate infrastructure (e.g. feeder roads, electricity, dams) is driving up costs of production and transport, making agriculture less competitive.
- Sustained agricultural support services: Such as access to appropriate financing, inputs and extension services. Farmers must be able to get reliable agricultural inputs while agribusiness needs to invest in capital equipment as well as in purchasing inputs and other agricultural services.
- Investment Promotion. Identifying and catalysing the deployment of additional private sector investments to support both downstream and upstream agribusiness activities. This involves highlighting opportunities, providing relevant information and facilitating access to and interaction with public institutions.
- Investment Coordination: Coordinating and bringing together stakeholders to discuss specific issues and share information including stimulating more effective coordination and alignment of existing and/or planned hard or soft infrastructure programmes with the needs of agribusiness;
- Smallholder Farmer Development: The design of the BAGC makes it imperative that smallholders – the vast majority of the population in the corridor – are firmly embedded in the program and commercial value chains. All commercial partners ensure the full inclusion of smallholders in their investments.
- Develop a conducive business environment through effective government policies: that are supportive of private-sector investment in commercial agriculture. This is fundamental to BAGC’s impact. By providing an institutionally neutral base BAGC can facilitate open communication and consult widely on decisions that improve long-term predictability of government policy towards the private sector.