My digital artifact is targeting the general public in order to increase awareness on how integration into Global Value Chains (GVCs) can contribute to sustainable socio-economic development using the example of the Mozambican Agricultural Sector. This is done by presenting the current status of Mozambican Agriculture and its potential for contributing to the socio-economic growth of the country. An analysis is done based on the drivers of participation in Global Value Chains looking at examples where other countries were successful in using these drivers and challenges Mozambique faces and its opportunities ending with recommendations for improving effective participation in GVCs.

1. Integrating Mozambique into
Global Value Chains through Agriculture
Developed as the Final Project in the Trading for Development in the Age of Global Value Chains - WDR 2020 Course
Topic: Something important that you have learned during this course that examines GVCs in the context of your own work or community setting.

2. Agriculture and Socioeconomic Development in Mozambique
• IFAD (2020) indicates that Mozambique’s agriculture is an important sector for
the country’s socioeconomic
• main source of income for more than 70 per cent of population
• provides employment for 80 per cent of the workforce
• contributes to more than a quarter of its GDP
• USAID (2019) argues that Mozambique has the potential to become a major
producer in Southern Africa due to:
• arable land of which only 16% is being used
• its geographical location in a region with landlocked countries making it a
major player for regional and international trade with its ocean ports.

3. Challenges in Mozambican Agriculture
• USAID (2019), indicates that Mozambican Agriculture’s potential is reduced as
• majority of producers are subsistence farmers with chronic food insecurity
• climatic shocks and natural disasters
• World Bank (2019) show that Mozambique’s annual agricultural growth is lower
than the 6% target due to low agricultural productivity resulting from:
• low use of improved inputs;
• inadequate agricultural support services (extension, research and finance);
• high reliance on variable rainfall in rain-fed agriculture;
• unsustainable natural resources use;
• poor road network with only 33% of northern and central regions rural
population with access to markets;
• lack of formal land property rights;
• lack of key rural infrastructure (storage, water storage and irrigation); and
• fragmentation of institutional arrangements and roles.

4. Strategies to improve Mozambican Agriculture’s
Contribution to Socioeconomic Development
• Integrate Mozambican Agriculture into Global Value Chain as the World Bank
(2020) indicates that this can lead to productivity growth, job creation, and
increased living standards
• Strategies for Mozambican Agricultural integration will be based on the GVCs
participation drivers indicated by the World Bank (2020), which include:
• Factor endowments: Foreign Direct Invest, finance, labour costs and skills;
• Market size: access to inputs, standardizations and market access;
• Geography: trade infrastructure, advanced logistics services and ICT
connectivity and
• Institutions: governance, standards certification, contracts enforcement,
intellectual property rights:

5. Reflection on strategies for GVCs integration
Drivers of
participation
Success Stories from other
countries
Current Mozambican
situation
Policy implications for
Mozambique
Factor
endowments
• Vietnam attracted
Samsung invests due
to its young, cheap,
and abundant
workforce (World
Bank, 2020)
Positive
• Arable land of which
only 16% is being used
(USAID, 2019).
• Major player for
regional and
international trade with
its ocean ports (USAID,
2019).
Challenges
• Low levels of finance
and FDI for agriculture
sector (World Bank,
2019)
• Invest in
• Attracting FDI
• Increase in
agricultural
finance
• Skilled low cost
labour

6. Reflection on strategies for GVCs integration
Drivers of
participation
Success Stories from other
countries
Current Mozambican situation Policy implications for
Mozambique
Market size • Preferential trade
agreements have
helped on GVC entry
for a countries such
as Lesotho and
Madagascar (World
Bank, 2020).
Positive
• Tax-free and nominal duty for
imported agricultural inputs
(USAID, 2011).
• Participates in Regional Trade
Agreements including SADC,
EU-SADC (WTO, 2020)
Challenges
• No standards which give
incentives for quality
(USAID, 2011).
• Mozambique is not
maximizing on existing trade
agreements (World Bank,
2019)
• Improve setting up
and enforcing of
standards
• Act on taking
advantage of the
preferential trade
agreements of
which Mozambique
is part of

7. Reflection on strategies for GVCs integration
Drivers of
participation
Success Stories from other
countries
Current Mozambican situation Policy implications for
Mozambique
Institutions • Vietnam improved its
investment
environment and that
increased its FDI from
$400 per person in
early 2000s to $880 in
2015
Challenges
• Human Development
Index – low sustainable
development: number
180 out of 189 countries
(UNDP, 2020)
• Doing Business Rank –
138 out of 190 countries
showing room for
improvement in business
enabling environment
• Work on creating a
business enabling
environment for
integration into GVCs
with sustainable
socioeconomic
development
• Strengthen linkages
with existing
multinationals such as
Olam and FairTrade
who promote long
term and mutually
beneficially
relationships with all
chain stakeholders

8. References
• IFAD, 2020. Mozambique. [online] IFAD. Available at:
<https://www.ifad.org/en/web/operations/country/id/mozambique#:~:text=Agriculture%20is%20th
e%20main%20source,generating%20income%20for%20their%20families.> [Accessed 15
September 2020].
• UNDP, 2020. | Human Development Reports. [online] Hdr.undp.org. Available at:
<http://hdr.undp.org/en/countries/profiles/MOZ> [Accessed 14 September 2020].
• USAID, 2011. Agclir Mozambique - Commercial Legal And Institutional Reform In
Mozambique’s Agriculture Sector. Maputo: USAID.
• USAID, 2019. Agriculture And Food Security | Mozambique | U.S. Agency For International
Development. [online] Usaid.gov. Available at: <https://www.usaid.gov/mozambique/agriculture-
and-food-security> [Accessed 14 September 2020].
• WTO, 2020. WTO | Regional Trade Agreements. [online] Rtais.wto.org. Available at:
<http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?MemberCode=508&lang=1&redirect
=1> [Accessed 12 September 2020].
• World Bank, 2019. Agriculture Public Expenditure Review: Assessment And Result-Focused
Expenditure Management. [ebook] The World Bank Group. Available at:
<http://documents1.worldbank.org/curated/ar/101351562620820193/pdf/Mozambique-
Agriculture-Public-Expenditure-Review-Assessment-and-Result-Focused-Expenditure-
Management.pdf> [Accessed 14 September 2020].
• World Bank. 2020. World Development Report 2020: Trading for Development in the Age of
Global Value Chains. Washington, DC: World Bank.
• World Bank. 2020. The World Bank In Mozambique - Overview. [online] Available at:
<https://www.worldbank.org/en/country/mozambique/overview> [Accessed 12 September 2020].

9. Thank You