The African Development Bank Group (www.AfDB.org) has approved a $22.8 million grant from its concessional African Development Fund to strengthen Mozambique's rice value chain and enhance climate resilience, targeting 30,000 smallholder farmers across four provinces.

The grant will fund the Rice Value Chain and Climate Resilience Project, which seeks to increase Mozambique’s rice self-sufficiency from 50 percent to 75 percent by 2030, addressing critical food security challenges in one of Africa’s most food-insecure nations.

Despite rice being a staple food, Mozambique produces only half of the 600,000 tons it consumes annually. The country relies on imports to bridge the 300,000-ton gap, a dependence that drains foreign reserves and deepens rural poverty.

"By targeting the most vulnerable populations and focusing on climate-smart technologies, the grant will create a lasting impact on food security and rural livelihoods," Macmillan Anyanwu, the Bank Group’s Country Manager for Mozambique, stated, noting that the initiative aligns with the country’s national development strategy and the Bank’s commitment to transforming agricultural value chains. The project specifically targets vulnerable populations, with 70 percent of beneficiaries being women and 30 percent being youth.

The project is designed to quadruple rice yields, from a ton per hectare to four tons per hectare, and raise annual household incomes from about $590 to $1,000. Initial results are expected to generate an extra 6,000 tons of rice annually. While that covers just 2 percent of the country’s current deficit, it sets a foundation for scaling up production and reducing import dependency.

RIVACREP will rehabilitate 1,000 hectares of irrigation infrastructure, primarily in Gaza province, and establish five small-scale milling factories alongside 10 aggregator centres through a public-private partnership. Key interventions include the rehabilitation of irrigation systems, soil leveling, drainage improvements, and the construction of climate-resilient storage facilities, as well as the introduction of drought- and flood-tolerant rice varieties through partnerships with international research institutions. These interventions are expected to cut post-harvest losses by more than half, from 26 percent to 12 percent.

"By building resilient infrastructure and integrating private sector actors, RIVACREP will enable Mozambique to reduce dependency on imports, create domestic value addition, and set the foundation for an industrialized and climate-smart rice sector," said Neeraj Vij, African Development Bank Group’s Regional Sector Manager.

"The project will also serve as a model for transformative value chain development that can be replicated in other key commodities. This will contribute to building a more self-reliant and resilient economy, reducing external dependency while creating opportunities for youth and women."

Addressing Food Security and Nutrition

Mozambique faces widespread malnutrition, with child stunting rates as high as 44% in Zambezia province. The project incorporates a strong nutrition component targeting 6,000 beneficiaries through the promotion of biofortified rice varieties rich in iron and zinc.

To address vulnerability to climate shocks and regional security challenges, particularly in northern provinces, RIVACREP also features a Contingency Emergency Response mechanism, enabling rapid support during crises.

Mozambique’s Ministry of Agriculture, Environment, and Fisheries will lead project implementation, with safeguards in place to ensure environmental and social protection. RIVACREP supports multiple development objectives aligned with the African Union's Agenda 2063 and the UN Sustainable Development Goals.

The project duration spans from December 2025 to December 2030, with a mid-term review in 2028.

The African Development Fund is the concessional arm of the African Development Bank Group, providing grants and soft loans to support development projects in Africa's most vulnerable countries. The support demonstrates the African Development Bank Group’s renewed commitment to climate resilience, inclusive growth, and value-added agricultural production.