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  • Agricultural investments in Mozambique: An analysis of investment trends, business models and social and environmental conduct

Agricultural investments in Mozambique: An analysis of investment trends, business models and social and environmental conduct

20 April, 2016
Also read the Working Paper on agricultural investments in Mozambique
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FTA

Authors: Di Matteo, F.; Schoneveld, G.C.

This paper has been funded by the CGIAR Research Program on Forests, Trees and Agroforestry (FTA).

The recent influx of agricultural investment to Africa is increasingly equated with land grabbing by investors from emerging and Northern economies seeking to produce commodities to serve the needs of their own food and energy markets. This paper reflects on this discourse by unpacking agricultural investments in Mozambique – one of the largest recipients of agricultural investment in Africa. By drawing on official investment data and structured interviews conducted with 69 agricultural investors in Mozambique, this paper analyzes agricultural investment trends, characteristics and the factors that shape investors’ social and environmental conduct. It illustrates that, contrary to popular depiction, regional investors, domestic food end-markets, and private finance are the primary drivers of investment. Moreover, this paper shows that investors differ significantly in the types of strategies, business models and practices they adopt. The findings highlight a lack of nuance in the global agricultural investment discourse and the need for more evidence-based policy intervention in order to adequately leverage the potential of agricultural investments to contribute to inclusive green growth.

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Center for International Forestry Research (CIFOR) 2016

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  • Legal frameworks enabling sustainable land-use investment in Mozambique: Current strengths and opportunities for improvement

Legal frameworks enabling sustainable land-use investment in Mozambique: Current strengths and opportunities for improvement

09 November, 2015
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cifor

The International Development Law Organization (IDLO) and the Center for International Forestry Research (CIFOR) assessed the legal frameworks that govern land-use activities and investments in Mozambique. Mozambique’s legal framework for environmental management is well developed, and recent legal reforms have strengthened key public interest safeguards. Similarly, the country has established a comprehensive framework for investment through the Investment Law and Investment Promotion Centre (CPI), and enshrined in the Land Law the right to the use and benefit of land (DUAT). The Environmental Impact Assessment (EIA) process places public consultation at the heart of effective environmental management. It extends participation to a broad spectrum of stakeholders at an early stage, allowing, in theory, substantial influence over the design and implementation of the EIA process. The National Council for Sustainable Development (CONDES) and the Ministry for Environmental Coordination (MICOA) have not managed, however, to influence high level government policy decisions and push convincingly for a sustainable development agenda.

The key weaknesses of Mozambique’s environmental safeguard system, Investment Law and Land Law include the short timelines to review investment proposals by CPI and sector-specific authorities; a focus on economic outcomes; the inability to monitor and enforce existing laws and regulations; inadequate compensation mechanisms; limited funding to enable MICOA and CPI to oversee the critical public consultation phase and monitor compliance with Environmental Management Plans; ineffective information dissemination, and threats to the independence of the public consultation process; and poorly qualified EIA consultants. The mining industry is distinguished by serious gaps in its accountability framework.

This Legal Assessment report for Mozambique examines policy, institutional and legal frameworks in the agricultural, energy, forestry and mining sectors and identifies four key challenges to the attainment of sustainable land-use investments, viz.

  • Weak enforcement of environmental and social safeguards;
  • Lack of incentives in the legal framework;
  • Insecure land tenure;
  • Low public awareness and limited access to information.

Source: CIFOR publications

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