Problem

Following independence from Portugal in 1977, Mozambique suffered a bloody civil war that ended in 1992, from which it emerged as one of the world’s 10 poorest countries in GDP and human development. The rural central and northern regions of the country saw the most intense fighting, and physical and institutional infrastructure for business were almost completely destroyed. Challenges for businesses include limited human capital, lack of rural infrastructure, and official corruption.

The Gift

Mozambique’s farmers are working hard to achieve an economic turnaround. However, producer organizations in Mozambique are generally few and weak, due to farmers’ negative experience with previous agricultural collectivization. Ikuru, representing 8,000 farmers, focuses on four principle crops: peanuts, sesame, cashew, and soybeans. They are now the most important producer-owned agricultural marketing company in Northern Mozambique.

Although most of Ikuru’s sales have been to national commodity markets, the cooperative is working to develop exports for certified products. In 2004, the members received organic certification for ground nut and sesame production, and in 2006 the organization received Fair Trade certification.

Your support of this Ikuru, through financing from Root Capital (a social investment fund), would help them continue to play an important role in forging a path for more fair trade growers in Mozambique who seek to join the economic upturn.