The Mozambique government has called on the country’s financial sector to increase specialised financing for agriculture and fisheries as part of broader efforts to strengthen domestic production, improve food security and support economic growth.

Speaking after a meeting with private sector representatives in Maputo, Minister of Agriculture, Environment and Fisheries Roberto Albino said stronger collaboration between government, banks and private investors is needed to ensure production-focused financing reaches farmers and agribusinesses more effectively.

Push for specialised agricultural financing

According to Albino, the private sector believes commercial banks are still not adequately responding to the financing needs of producers, processors and agribusiness operators.

He encouraged financial institutions to develop specialised financing models tailored to agriculture and fisheries, sectors often viewed as high-risk despite their importance to employment, food supply and export earnings.

The discussions formed part of a broader engagement between government and the Confederation of Economic Associations of Mozambique aimed at improving the business environment and addressing constraints affecting productive sectors.

Key challenges facing producers

Among the major concerns raised by private sector stakeholders were calls for the permanent extension of the 10% VAT regime for agro-industry, improved access to subsidised energy and fuel tariffs, and stronger financing support for agricultural production and processing.

Albino noted that although funding mechanisms for production support exist, many producers are unable to access them effectively due to weak financial implementation structures and coordination gaps.

He stressed the need for more efficient cooperation between the state, financial institutions and private sector investors to improve capital flow into productive sectors.

Fuel price increases add pressure

The discussions come amid rising operational costs following recent fuel price increases in Mozambique, where diesel prices rose by 45.5% and petrol prices by 12.1%.

The minister said the government is evaluating mitigation measures for sectors considered strategically important to economic growth, including fisheries and agriculture, although proposals are still under review.

Higher fuel costs continue to place pressure on transport, logistics and agricultural production systems across the country, increasing concerns over input costs and food prices.

Private sector seeks new partnership model

CTA Vice-President Osvaldo Maute welcomed the government’s commitment to supporting production through financing, mechanisation and seed distribution programmes.

He described the new approach as a potential turning point for Mozambique’s agricultural sector, with stronger alignment between government and private sector priorities.

Maute said stakeholders expect the proposed financing initiatives to directly support production growth while helping modernise farming operations through mechanisation and improved access to agricultural inputs.

Agriculture remains central to economic growth

Agriculture continues to play a major role in Mozambique’s economy, employing a large share of the population and contributing significantly to rural livelihoods.

However, limited access to finance, inadequate infrastructure, high transport costs and climate-related risks continue to constrain productivity and private investment across the sector.

Analysts say improved financial inclusion, targeted investment and stronger policy coordination will be essential if Mozambique is to scale agricultural production, strengthen agro-processing and reduce dependence on food imports.