Mozambique possesses extensive arable land, water resources and climatic suitability for a range of crops. However, only around 10% of an estimated 36 million hectares of viable farmland is utilized. This underscores major room for agricultural growth.
Investment opportunities in Mozambique’s agriculture sector are abundant, making it an attractive area for potential investors. With over 36 million hectares of arable land and a young, trainable workforce, the agriculture sector is the backbone of the Mozambican economy which is allowing for the production of various crops.
The sector has been identified as a national priority and a source of income for over 70% of the population— contributing 26% to the country’s GDP in 2020. However—the agribusiness sector has been historically constrained by underinvestment, resulting in low productivity and a lack of infrastructure, which hinders access to markets.
To address these challenges and unlock the sector’s potential, the United States Agency for International Development (USAID) has announced a new agriculture portfolio valued at $170 million USD to foster inclusive economic growth, strengthen food systems and improve the resilience of vulnerable communities.
The government of Mozambique has defined agriculture as a strategic sector for the country’s development, aiming to promote growth, diversification of the productive base, job creation, and trade balance equilibrium. The sector offers various investment opportunities, including agricultural production, agro-processing, and agribusiness.
Despite the challenges— the agriculture sector holds great potential due to the country’s vast arable land and favorable weather conditions. Additionally— the government is considering fiscal reforms to facilitate investment in the sector and is working to improve access to advanced technologies and markets.
Mozambique’s agriculture sector presents promising investment opportunities and the government, along with international organizations, is taking steps to address the sector’s constraints and unlock its potential for inclusive economic growth and food system resilience.
Key opportunities lie in staple crops like— maize, rice and potatoes where Mozambique still imports over $200 million annually despite domestic potential. Expanding production of cash crops such as tobacco, cotton, cashews and sesame for export also offers prospects.