"Increasing agricultural production remains a challenge," - Filipe Nyusi

Increasing production and productivity levels continue to be among the main challenges facing the Mozambican economy to balance the trade balance, especially in the agricultural sector.

Speaking at the launch, yesterday, of the Agricultural Commercialization Campaign, a ceremony that took place in the district of Marracuene, Maputo province, the President of the Republic, Filipe Nyusi, recalled that, historically, Mozambique registers a negative balance of trade balance with a direct impact on the value of the metical against the main transaction currencies, conditioning the country's economic policies.

Using recent statistics, Nyusi, cited by the newspaper Notícias, pointed out that in the agrarian sector, in 2020, Mozambique exported agricultural products worth 624.6 million dollars and imported the equivalent of about 900.5 million, which corresponds to a deficit of around 394 million US dollars.

Among the products that contributed negatively were onions and potatoes.

Filipe Nyusi also points out that if in 2020 the country imported onions worth about 15 million dollars, in 2021 imports increased to about 19 million, corresponding to a variation of four million dollars.

In terms of potatoes, in 2020 the country imported about $18 million and last year $21 million, representing an increase of about $3 million.

All these indicators, according to the President of the Republic, show the need to intensify the cultivation of these two products, not only because it is a business with a safe market, but also because it is an exercise that will help balance the trade balance.

"Maputo province has all the conditions to produce the potato, Niassa and Tete idem," pointed out Nyusi, who also acknowledged that Tete province is already selling in large quantities.

The President also said that he was encouraged by the fact that in the first quarter of 2022, agricultural exports increased by 80 million US dollars, corresponding to an increase of about 88% mainly influenced by the increase in pulses and almonds.

Despite this positive record in the first quarter, according to Nyusi, greater pressure on the trade balance is expected due to the rise in the import price of major products and international logistics.

Nyusi explained that, with the launch of the agricultural campaign yesterday throughout the country, the intention is to operationalize the mechanisms for access to financing for business activity in this sector.

He called on the institutions to make efforts to ensure the promotion of investments, establishment of partnerships for the exploitation of business opportunities in the agricultural marketing value chain, as well as in the organization of producers with a view to facilitating their active and beneficial intervention in the marketing chain.

It should be noted that, overall, the country should market this year just over 17 million tons of agricultural products. Of this quantity, 21 percent are cereals, 45% roots and tubers, 13% vegetables, 11% are legumes, four percent oilseeds, and 20% other crops.

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