Cassava farm

AFT Fund awards 4 new grants in Mozambique and Tanzania

Date: Monday, December 8, 2014

The Agriculture Fast Track Fund (AFT) has awarded four new grants amounting to almost US$ 2,000,000 to high value agriculture infrastructure projects in Mozambique and Tanzania.

EcoFarm sugar cane production and processing Odebrecht integrated poultry project have been selected in Mozambique. Tanga Fresh UHT milk production, KijaniAgro high quality fresh fruits and vegetables in Tanzania will be receiving funding to cover market analyses, site surveys or financial modelling and other preparation costs.

The Agriculture Fast Track Fund has agreed to grant four new agribusiness operators in Mozambique and Tanzania with funding for projects development. The first project is Odebrecht (Mozambique), aiming to offer a good quality chicken supply with US$555,000. The second one is EcoFarm’s sugar cane estate development (Mozambique),with US$797,500. Tanga Fresh’s UHT milk production expansion (Tanzania) with US$150,500 is the third grantee. KijaniAgro (Tanzania), planning to offer a variety of high quality fresh fruits and vegetables with US$490,000. The vision of the four granted projects falls in line with the AFT’s mandate of an impactful agriculture infrastructure. They feature improved food security, access to a sustainable market, technology transfer, opportunities for local communities while tackling gender issues.

Odebrecht trained 2,300 Mozambicans in Health and Safety, Environment, Quality and Psychology at Work with ACREDITAR. This company training program seeks to accompany young people to enter the labor market. EcoFarm works with 1,150 farmers owning 50% of the sugarcane estate and hopes to create 1,000 jobs to add 1.2 Million disposable incomes for the area. Tanga Fresh pledges to increase the distribution of UHT milk to cities far inland where dairy products are not available or affordable. KijaniAgro is planning to have 1,000 smallholders benefiting from the project, including 60% of women, with a particular attention to their professional progression within the firm.

The AFT concentrates on projects while in their preparation stage, when funding is eagerly needed to secure an efficient transition from planning to construction. Odebrecht will use the grant supplied by the AFT to complete its final feasibility studies and market research. EcoFarm, which is developing a 3,500 ha sugar cane estate, will undergo an environmental and social impact assessment. Tanga Fresh in Tanzania will focus on developing an implementation strategy for the improvement of the milk quality. KijaniAgro is to conduct an independent study on Tanzania and the regional horticulture market.

The Agriculture Fast Track Fund is designed to strengthen the links among the farmers, the markets and the consumers. It aims to catalyze significantly more private sector investments and ensure the highest standards in terms of social and environmental sustainability. The AFT is dedicated to contribute strongly to improve food security in Africa through an enhanced agriculture infrastructure.