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Innovations for Poverty Action (IPA) 2009

Savings, Subsidies and Sustainable Food Security in Mozambique

Savings Food Security

Titre : Savings, Subsidies and Sustainable Food Security in Mozambique

Innovations for Poverty Action

Région /Pays : Mozambique

Date : 2009-2013

Large-scale emigration, economic dependence on South Africa, and a prolonged civil war hindered Mozambique’s development until the mid 1990s. Agriculture accounts for almost 29 percent of the country’s GDP, however agricultural technology adoption has been slow in Mozambique compared to other counties in the region. Most of the farmers interviewed for this study had little or no experience with application of chemical fertilizers and other agro-chemical inputs.

When smallholder farmers see how fertilizer increases their yields, they may continue using it. In this study in Mozambique, where very few farmers use agricultural inputs, researchers evaluate if giving farmers fertilizer subsidies encourages them to continue using fertilizer when subsidies run out. This study also measures the impact of coupling the subsidies with different types of savings accounts. Do subsidies, savings accounts, a combination of both, or none of the above, lead farmers to invest in their farms, grow more food, and earn more income ?

Researchers are investigating the impacts of fertilizer subsidies on smallholder farmers in rural Mozambique, and in particular, whether providing farmers opportunities for savings accounts can help subsidies achieve a greater sustainable impact. Vouchers for fertilizer were distributed randomly to a sample of farmers. In partnership with Banco Oportunidade de Moçambique (BOM), researchers also randomized offers of one of several different savings accounts interventions, to see how the subsidies and savings accounts complemented one another.
The sample comprises farmers with access to some type of agricultural extension service, either through an NGO or government entity, so that they have access to information on how to use fertilizer if they choose to use it. Researchers worked with two sub-groups of farmers. The voucher randomization (VR) sample is comprised of farmers randomly distributed (or not distributed) vouchers for fertilizer. The VR sample enabled researchers to examine the interaction between voucher receipt and savings incentives.

Partenaires  : Banco Oportunidade de Mozambique (BOM) ; BASIS Research Program on Poverty, Inequality and Development

Innovation for Poverty Action (IPA)

Page publiée le 12 septembre 2015, mise à jour le 8 novembre 2017