Market Intelligence
Distribution and Logistics Agribusiness Healthcare Mozambique Cold Storage Transport Infrastructure Warehousing

Mozambique Cold Chain

The agriculture sector stands as a national priority, as it is also a source of income to more than 70% of the population. Additionally, the sector holds great potential due to Mozambique’s unused arable land amounting to 36 million hectares in addition to favorable agro-ecological conditions. However, it remains a net importer of food despite its high potential. 

According the World Bank, agriculture, forestry and fishing contributed to 26% of GDP in 2020. Sector production grew by 3% from 2019-2020 due to favorable weather conditions, limited access to foreign foods imposed by lockdown restrictions in addition to increased government support. However, sector growth faces major hurdles due to the small number of existing commercial ventures.  Most smallholder farmers still opt to use traditional methods and rely of international donor assistance or government funding for financing. Furthermore, growth is also hindered by inadequate infrastructure as well access to essential technologies raging from cold chain systems to water supply.  

In 2020, the Government of Mozambique launched the SUSTENTA Initiative, a program supported by the World Bank, which aims to integrate rural households into sustainable agriculture and forest-based value chains. The total grant amount is valued at USD 500 million to support farmers with: training, financing and improve supporting services. Reports from the Ministry of Agriculture account that crop production increased from 14 to 16 million tons, within the years 2020-2021, fueled by the initiative. On the other hand, farmers continue witness major sale losses due to lack of processing equipment in addition to crop storage and transportation solutions.  

Moreover, as part of Mozambique’s industrialization program (PRONAIMO), the government aims to set-up Agro-Industrial parks to increase industrial exports and substitute imports. Financed by the African Development Bank, Mozambique will establish the Pemba-Lichinga Integrated Development Corridor Special Agro-Industrial Processing Zone. This project will be implemented over a 5 year period, starting in 2022, with a total cost of USD 47 million. Additionally, Mozambique aims to leverage its large coastline by upgrading port facilities to service neighboring landlocked countries. The Port of Maputo plans to expand its recently built citrus terminal, inclusive of a cold storage facility, by 2023.

The distance between farmers and sellers, combined with the high temperatures in the country and poor road quality create long transit times and decreased product shelf time, enforcing the need for refrigerated transportation, currently not accessible to all farmers/sellers. Apart from agriculture, a strong cold chain for the transportation and storage of pharmaceuticals is also needed since it also faces similar challenges. 

Opportunities and solutions include:

  • Cold storage facilities
  • Transportation
  • Passive/Evaporative cooler
  • Absorption refrigerator
  • Solar grid refrigerators
  • Pre-cooling and cold rooms
  • Pack houses and automated ripening chambers
  • Temperature monitoring equipment
  • Packaging

Webinar & Virtual Connections 

This report is part of a larger project titled “Cold Chain Solutions Virtual Connections.”  The project kicks off with a Webinar featuring Sub-Saharan Africa Commercial Specialists on Tuesday, September 27, 2022 from 11:00 am – Noon Eastern Time for a market overview Webinar, an opportunity to ask questions to market experts, and more information on how you can enter the Sub-Saharan Cold Chain market.  Link: https://bit.ly/SSAcold-chain 

Following the webinar, companies offing U.S. cold chain solutions can connect with buying opportunities in Sub-Saharan Africa.  The Virtual Connection will provide additional curated matchmaking sessions to meet buyers and government officials in up to three of the markets presented. Between 1 – 3 virtual introductions will be organized by local U.S. trade specialists who will guide you through the next steps so you can make the sale. For details, contact Haley.Milan@trade.gov or Susan.Murray@trade.gov.
 

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