Mozambique - Market Led Smallholder Development in the Zambezi Valley Project - Supplemental credit

Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB2311 Project Name Market led Smallholder Development in the Zambezi Valley Region AFRICA Sector General agriculture, fishing and forestry sector (20%); Animal production (20%); Irrigation and drainage (20%); Crops (20%); Agricultural extension and research (20%) Project ID P093165 GEF Focal Area L-Land degradation Global Supplemental ID P098040 Borrower(s) GOVERNMENT OF MOZAMBIQUE Implementing Agency Ministry of Planning and Development Ministry of Agriculture Maputo, Mozambique District Administrations of Morrumbala, Mutarara, Mopiea , Maringue, and Chemba Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared March 30, 2006 Date of Appraisal Authorization March 29, 2006 Date of Board Approval June 20, 2006 1. Country and Sector Background From 1996-2003, rural poverty in Mozambique declined from 71.3% to 55.2%. This was primarily due to the impact of post war returning refugees to the rural areas that provided much needed labor to expand area under cultivation which helped to accelerate agricultural growth. It is estimated that about 3.2 million smallholder farms (average of 1.4 hectares holding size) account for the vast majority of the country