Impact Assessment

SNV and Cashew Sector Reform: 'Governance for Empowerment in Cashew Value Chain Development', SNV, 2008

    Description
    Since 2007, SNV's Governance for Empowerment (GfE) programme has worked with the government in Moginqual, an important district for cashew production in Mozambique's Nampula Province, to improve the incomes of producers in the cashew value chain. A market assessment identified the lack of coordination among producers, complicated in particular by the lengthy procedure for the legal registration of associations, as a key constraint to income growth. With the removal of this bottleneck, recognised associations gain producers a better price for their cashew by enabling them to a) reduce the number of middle men in the supply chain; b) increase their bargaining power; c) gain access to credit and d) enter new markets. This report examines the extent to which these changes have occured, and the impact they have had on the incomes of intended beneficiaries.

    Regulatory reform forms part of a wider set of interventions undertaken by SNV Mozambique in support of the local cashew sector. Others include:

    1. Capacity building of agricultural extensionists
    2. Linkage of legalised associations with credit institutions
    3. Improving market information
    4. Advice in the payment of credits and justification to the members and suppliers


    Summary of results
    Ten associations have been legalised. These have in turn accessed $40,000 in credit. The legalised associations have reportedly reduced the number of intermediaries needed in the value chain, transferring a greater share of added value to the producers. The formation of legalised associations has also made Fair Trade certification possible, giving producers access to a new, high-end market. Furthermore, the associations serve to increase the voice of small-scale producers, and with a growing number of women interested to take part, can have a positive impact on gender-related poverty.