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About the BAGC Initiative

The Beira Corridor is one of Southern Africa’s main transport routes. It is a road and rail network linking large parts of Zambia, Malawi, Zimbabwe and Mozambique to the port of Beira on the Indian Ocean. Farmland along the corridor has proven agricultural potential with microclimates suitable for a variety of crops for domestic consumption and export. There are good water resources along the corridor, although a lack of infrastructure means that most agricultural production is rain-fed. Of the over 10 million hectares of arable land available in the Beira Corridor less than 3% is presently commercially exploited.

Four key issues must be addressed if sustainable commercial agricultural development of the Beira Agricultural Growth Corridor is to be kick-started:

  • Appropriate financing mechanisms: a lack of access to long-term finance, preventing most farmers, especially smallholders, from being able to invest in capital equipment such as irrigation. Without new financing mechanisms the potential cannot be realized.
  • Investments in productive infrastructure: inadequate infrastructure (e.g. feeder roads, electricity, dams) is driving up costs of production and transport, making agriculture less competitive;
  • Strong commitment to success from government, private sector and international community. 
  • Effective mechanisms for coordinating decision making and actions of stakeholders.
  • Effective mechanisms for ‘on-the-ground’ implementation of investments.

Today there are excellent prospects for a revival and expansion of agriculture along the Beira Corridor, for a number of reasons:

  • Large commercial investments are taking place in the mining and agriculture sectors, and in Beira Port itself, which are expected to drive a significant increase in goods volumes through the corridor;
  • Major public sector projects are underway to improve transport infrastructure (port, rail) and irrigation infrastructure through the $70m PROIRRI; and
  • The Mozambican government is emphasising a corridor development approach and the BAGC initiative has full government support. The BAGC initiative is fully aligned with Government Agriculture Development Strategies Plan (PEDSA). Specifically the initiative addresses three of the four pillars- enhancing productivity, access to markets and the development of sustainable institutions.

The BAGC blue print presents a roadmap for bringing 190,000 hectares of food and other crops under commercial irrigation, incorporating smallholders. If achieved, a total investment by the public and private sectors of $1.7 billion will generate annual farming revenues of $1 billion and will stimulate investment along the entire value chain.

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Launched at the World Economic Forum at Davos, the Beira Agricultural Growth Corridor (BAGC) is a partnership between governments, private investors, donor agencies and regional organisations which aims to boost agricultural productivity in Mozambique and the wider region. The Beira Corridor has offices and Maputo and can be contacted through this website.

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