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The urbanization experience in Zimbabwe: A closer look at challenges and opportunities

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Rodney Mushongachiware
“Food Security and Nutrition in an Urbanizing World”
June 06, 2017
Brussels, Belgium
The International Food Policy Research Institute (IFPRI), SNV Netherlands Development Organization, and Welthungerhilfe are jointly organizing a one-day event in Brussels on the eve of the European Development Days to explore the challenges and opportunities of urbanization from a variety of perspectives.

Published in: Government & Nonprofit
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The urbanization experience in Zimbabwe: A closer look at challenges and opportunities

  1. 1. Sustainable economic development through market systems approach The urbanization experience in Zimbabwe: A closer look at challenges and opportunities for smallholder farmers. Rodney Mushongachiware Agricultural Partnerships Trust Market Linkage Advisor Twitter: @simba_gokwe6 June 2017
  2. 2. Sustainable economic development through market systems approach The myths and urbanization experience in Zimbabwe
  3. 3. Sustainable economic development through market systems approach • Total population: 15.6 million (2015) • Urban: 32.4% of total population (2015) – Harare: 2.1million, Bulawayo: 653,337 • Rate of urbanization: 2.3% annual rate of change (2010-15 est.) • About 70% of population derive livelihoods from agriculture • Total agricultural land 15.8 million (ha), Arable land 4.31 million (ha) • Large scale 0.05 % farmers • Communal: 84.5% million farmers • A1 & A2: 10.5% farmers • Old Resettlement: 4.9% farmers  Urbanization in Harare & Bulawayo creating opportunities for rural farmers ZimbabweandUrbanization Gokwe
  4. 4. Sustainable economic development through market systems approach Current situation • Periodic droughts and food insecurity • Most horticulture and fruits are imported (from SA) • Cereal imported from SA and Zambia The myths!?! • Import quality is better than local production quality?!? • Smallholder farmers have no capacity to consistently supply the market desired quality?!? CurrentSituationandthe myths
  5. 5. Sustainable economic development through market systems approach SIMBA market programme, Urbanization and the myths
  6. 6. Sustainable economic development through market systems approach SIMBAMarketsinBrief Funded By Co-Implemented by • Duration : 4 years: Nov 2013 – Nov 2017 • Location: Gokwe South District, Zimbabwe • Previous cash crop: Economy developed through cotton • Programme progress: 4000 (including 2000 sesame and >1000 chilli farmers) were linked to markets for horticulture, mung bean, flower seed, sorghum seed and cow peas seed • Partners:
  7. 7. Sustainable economic development through market systems approach APTstrategicframework INFORMATION FINANCIAL SERVICES ADVOCACY FARMER MARKETS INPUTS POLICIES INFORMAL NORMS STANDARDS MECHANISATION REGULATIONS TRANSPORT STORAGE COMMUNICATION TECHNOLOGY
  8. 8. Sustainable economic development through market systems approach • Crop Quality?!? • Production capacity?!? Disentanglingthemyths SIMBAProgramme
  9. 9. Sustainable economic development through market systems approach High value horticulture, urban markets, challenges and opportunities
  10. 10. Sustainable economic development through market systems approach • Total area = 27ha • 1207 farmers from 232 gardens (including 14 community gardens) • Markets: • Major: Selby, Refresh • Minor: FAVCO, FVC, Valley fresh, Bulawayo town markets and Informal markets • 110 MT of fresh produce (carrot, beetroot, butternut, onion, peas) marketed into urban markets. • One of the horticulture buyers stopped importing carrot and beetroot was exported as far as neighboring Mozambique. • On average, farmers made a modest profit (USD $100-$450), Highest farmer $1203 Highvaluehorticulturefor urbanmarkets
  11. 11. Sustainable economic development through market systems approach Abutternutharvest..
  12. 12. Sustainable economic development through market systems approach Marketingcarrots..
  13. 13. Sustainable economic development through market systems approach Farmers • Poor access to information: market demand, quality, prices • Delays in payment by buyers • Poor farmer organization (production, marketing, transport) – trust and honest issues • Low bargaining power or poor confidence of smallholders engaging or negotiating with big companies Companies • High transaction costs (transport, negotiations etc.) • Traceability • Private sector unwilling to invest in rural farmers and capacitate them .. business case? Formalmarketchallenges
  14. 14. Sustainable economic development through market systems approach Onionaggregation..
  15. 15. Sustainable economic development through market systems approach Informal markets • Volatile market demand and prices (unguaranteed market) • No standard grading - very little incentive for grading or producing high quality • No standards of measurement Cross-cutting (Formal and Informal) • Poor infrastructure and transport to support storage of perishable fresh produce • Formal agricultural extension institutions specialize in traditional crops (cereals and legumes) • Low financial literacy – no bank accounts, liquidity crises • Competition from big suppliers who enjoy economies of scale • Low capacity of rural smallholder to invest in research and development and explore new opportunities • Poor service markets (transport, payment solutions) Informalandcross-cutting marketchallenges
  16. 16. Sustainable economic development through market systems approach … for smallholders • Increasing urban population = increasing demand • Spill-over effect from production for urban markets to local markets (new types, nutrition) • Private sector investment in rural areas • Contract farming • Value addition in rural areas (processing on the spot!) • Growing demand for organic goods … for private sector investors • Smallholder farmers are not that specialized • ICT for managing large number of farmers, traceability • Marketing: “Buy locally!” - consumers demand to know source of their produce • Growing demand for organic goods Opportunities
  17. 17. Sustainable economic development through market systems approach Farmers • … need to overcome trust issues and organize themselves Private sector investors • ... need to develop new business models and invest in smallholder agriculture and young people • … need to engage in rural regions in compliance with internationally valid labour and social standards • ... need to invest in ICT4D National governments and facilitating institutions • … need to hold on to their promise to invest at least 10% of government budget in infrastructure, health, education and training • … need to promote reforms to promote the rule of law and business initiatives and assist companies to adapt and change their business models • Develop sustainable service markets (together with private sector) e.g. payment solutions • Identify ways to target youth and reverse the aging rural population • Nutrition education needed to increase the market base and demand for some crops NGOs and partners • … can assist farmers with visions through sharing of success stories and exchange visits Recommendations
  18. 18. Sustainable economic development through market systems approach • Farmer commodity groups, group dynamics and sharing of success stories. • Distinguish the productive and poorest farmers. • Affordable financing for productive smallholder farmers. • Donors need to negotiate with governments on creation of an enabling environment. Wayforward
  19. 19. Sustainable economic development through market systems approach Thank you

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