Revised Mozambique/ADRA International MYAP October 29, 2008
Make Zambezia Happy, an Income Generation Program (IGP)
Osanzaya Zambezia (Make Zambezia Happy),
ADRA’s Income Generation Program (IGP)
Multi-Year Assistance Program (MYAP) Proposal Application
P.L. 480 Title II
Mozambique/ADRA International
Implementation Start Date: August 1, 2008
Implementation End Date: July 30, 2011
Resource Request Summary:
Activity Completion Date: __July 30, 2011___
Life of Activity Commodity Request (MT): ______19,923
Life of Activity Direct Distribution Request (MT): 0_____
Life of Activity Monetization Request (MT): ___19,923______
Percent Monetization (%): ___100%___ (of total MT request)
Life of Activity Monetization Budget Request (US$ Equiv.): $10,848,000
Life of Activity Section 202(e) Budget Request (US$): $1,185,871
Life of Activity ITSH Budget Request (US$): $ 0
TOTAL FFP $ 12,033,900
Life of Activity CS Cost Share/Non-Federal Contribution (US$): ___$ 1,000,570
Life of Activity Other Cost Share (DA, HG, PEPFAR, etc.) (US$): _____TBA______
TOTAL PROJECT $ 13,034,441
Date of Revision to USAID/Mission and DCHA/FFP: October 29, 2008
ADRA HQ Contact Information: ADRA Country Office Contact Information:
ADRA International ADRA Mozambique
Jennifer Schmidt, Bureau Chief Planning Jair Parada, Acting Country Director
12501 Old Columbia Pike Av. Eduardo Mondlane 2091
Silver Spring, MD 20904 Maputo, Mozambique
(301) 680-6394 phone (258) 21 30 44 22/3
(301) 680-6370 fax (258) 21 32 04 87
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Revised Mozambique/ADRA International MYAP October 29, 2008
Make Zambezia Happy, an Income Generation Program (IGP)
Table of Contents
A. Executive Summary
B. Problem Analysis and Proposed Interventions
C. Program Objectives and Design
D. Complementarity
E. General and Detailed Implementation Plans
F. Monitoring and Evaluation
G. Audits
H. Commodity Market Issues
I. Activity Resource Requirements
J. Approval of Non-U.S. Equipment
K. Initial Environmental Examination
L. Agreements, Contracts, Letters
Appendices to Proposal Narrative
1. Revised Summary Request and Beneficiary Table
2. Budgets
2.1. Revised Comprehensive Budget
2.2. Revised Detailed Budget
2.3. Latest Negotiated Indirect Cost Rate Agreement
2.4 Revised Budget Narrative
3. Revised Annual Estimate of Requirements/Commodity Pipeline
4. Revised Executive Summary Tables
5. Draft Initial Environmental Examination
5.0 IEE Narrative
5.1 IEE Summary Table
5.2 IEE PERSUAP
6. Certifications, Assurances, and Other Statements
7. Agreements, Contracts, Letters, including HCFFPA
7.1a Letters of support from government counterparts at province
7.1b Letters of support from government counterparts at district
8. Bellmon Analysis
9. Mission Vehicle Procurement Policy
10. Country/Intervention Area Map(s)
11. Cost Recovery Table
12. Marking and Branding Plans
13. Final program evaluation
14. Glossary/List of Acronyms
15. Needs Assessment Report
16. Value Chain Study
17. Proven Performance/Capacity
18. Organizational Charts
19. CV Ricardo Certes
20. Revised M & E Plan
21. Revised IPTT Chart
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Mozambique/ADRA International Multi-Year Assistance Program Proposal
Make Zambezia Happy, an Income Generation Program (IGP)
A. Executive Summary
The Adventist Development and Relief Agency (ADRA) International is leading a consortium with other organizations (see App. 22) to reduce food insecurity in five districts (Mocuba, Maganja da Costa, Ile, Pebane and Lugela) of Zambezia Province under the “Osanzaya Zambezia”, which in Lomue – a major language in these 5 target districts – means “Make Zambezia Happy”, ADRA’s Income Generation Program (IGP). Causes of food insecurity. According to ADRA’s needs assessment, these include: low agriculture production due to poor quality seeds and little knowledge of improved practices, nonexistent extension services, price instability due to marketing constraints (which reduces farmers’ ability to get a higher price for their cash crops), declining soil fertility, widespread pests/disease, and vulnerability to risks such as recurring drought, cyclones and flooding. Strategic objectives and expected results. The overarching strategy of the IGP program is to reduce food insecurity and increase rural incomes in a sustainable way that integrates commercialization with increased productivity and strengthened value chains of select agriculture products (SO1) in addition to improved health, nutrition, water and sanitation (SO2) and enhance community resiliency to mitigate shocks (SO3) The strategies outlined in this MYAP and similar ones implemented by ADRA over the past 10 years are the most effective utilization of T. II commodities. The USAID mission notes market integration as fundamental to alleviate poverty and promote food security to address persistent malnutrition. They are also compatible with strategies of the Government of Mozambique, both nationally and at the province and district levels. Proposed program activities. To increase rural incomes, ADRA will enable smallholder farmers to focus on a set of products that have a high potential for profit based on market demand. ADRA’s market study, has identified specific products with market growth potential that are suited to agronomic conditions of the targeted program areas. ADRA will emphasize promotion of peanuts, maize, pigeon peas and cashew according to the aptitude of each district, but also will evaluate the possibility of promoting other selected crops. This market-driven approach to agriculture production and commercialization will result in improved family and community resiliency and strengthen their capacity to improve their living situation. Why imported food aid? Monetization of wheat will help to meet consumer demand that cannot be met without imports. Resources required. The following resource levels will be necessary for the successful implementation of this program: $10,645,243 (monetization) and (202(e) $1,271,115. Measuring and monitoring results. The M&E plan incorporates indicators required by FFP, the USAID mission and those for managing Program implementation. A baseline survey and final evaluations will provide evidence of the overall impact of the program. Brief history and evolution of T. II strategy and proposed interventions. ADRA has implemented Title II programs in 10 countries, including Mozambique. In FY 2007 ADRA distributed $5,754,900 in donated commodities in USAID and USDA programs. ADRA has worked in Mozambique since 1987, shifting from relief to development-oriented activities as Mozambique makes such a transition, and continuing to provide emergency response as the need arises. ADRA will continue to use this developmental relief approach – with its inherent flexibility – in the proposed program. ADRA is implementing a comprehensive health and economic development portfolio in Mozambique valued in excess of $19.5 million. In preparation for this project, ADRA conducted a needs assessment with TANGO and throughout the process involved key stakeholders both in the design of survey instruments as well as through interviews and secondary data collection. In a series of workshops where the assessment results were shared with USAID, government counterparts and ADRA staff on several projects, recommendations were taken into account in the design of the project.
B. Problem Analysis and Proposed Interventions
B.1 Food Insecurity in Mozambique. Mozambique, a nation of 19.4 million people growing at a rate of 1.5% every year, is one of the world’s poorest countries. It currently ranks 168 out of 177 countries,[1] the result of centuries of colonial neglect, application of Marxist economic theories and 30 years of intense guerrilla warfare. Annual per capita income is about $424, although in rural areas (such as Zambezia, the proposed zone of intervention) it is closer to $100.[2] An estimated 54% of the country’s population lives at or below the Mozambican poverty level of $1 per day (2003 survey). Major causes of poverty include low investment in education (53% adult illiteracy), low agricultural productivity, limited economic opportunities (and high underemployment), and poor infrastructure. The government intends to reduce poverty from 54% (2003) to 45% (by 2009), and indeed, the Mozambican economy has shown steady improvement with 2006 estimates showing an encouraging 8.2% economic growth rate.
Agriculture is central to all elements of life in Mozambique, and despite its challenges, is still the key to economic and social development at the community and household levels.[3] According to the government’s National Institute for Statistics, about 80% of the population derives their livelihood from the agriculture sector. Consequently, the national and regional government strategic plans for poverty reduction specifically aim to increase rural agricultural incomes and improve food security (see Section D on Complementarity). Mozambique is a leading producer of cashew, although the value chain has endured decades of neglect and is struggling to make a comeback on the international scene. Other important crops include maize, peanuts, pigeon peas, coconut, cotton, sugar cane and cassava. Livestock ownership is still very limited.
Mozambique’s citizen’s struggle with a range of health problems, resulting in very low life expectancy for both women (46 years) and men (44 years).[4] Under-five mortality rate (178/1000)[5] is high and frequently correlated to preventable illnesses such as malnutrition, malaria, diarrheal disease, and acute respiratory infection. Chronic illnesses affecting the adult population include many of the same diseases, although malaria is highlighted as having a severe negative impact on productivity in agriculture, resulting in lost income. Malaria is responsible for 40% of all reported health unit outpatient cases and constitutes 20% of all hospital deaths.[6] Taking into consideration the fact that more than half the population lives farther than 20 kilometers from the nearest health facility and therefore lacks access to health services, it is plausible that many malaria cases are not even captured in health unit reporting.[7] According to Technical Secretariat for Food Security and Nutrition (SETSAN 2006), the percent of the population in Zambezia reporting use of health services during time of illness is only 44.9%, the province with the lowest access rates. In addition, the national HIV/AIDS prevalence is estimated at 16.1%[8] is a major factor affecting vulnerability, as people living with HIV/AIDS are estimated at 1.3 million and HIV/AIDS deaths at 110,000.
Vulnerability and Extreme Chronic Food Insecurity in Zambezia. Zambezia (see map of project area in Appendix 10) is one of Mozambique’s most populous provinces, with about 2.9 million inhabitants that also count as some of the nation’s poorest (UNDP 2005). Nationally, 54% of the population lives at or below the poverty level of $1 per day (2003 survey)[9]. Agriculture is the main livelihood for most households in rural Zambezia. In the five districts of Zambezia targeted by ADRA’s project, 96% of survey households report being engaged in agriculture (TANGO 2007). Zambezia has both commercial (3,503 medium farms) and subsistence farmers (773,312 small farms) who collectively produce about 2 million MT of food (cereals, legumes and tubers), with the principal crops being cassava (54%), maize (33%) and rice (12%).[10] Despite the human investment in agricultural production, the province is one of the most vulnerable to food insecurity.
Over the past two years the region of southern Africa has been in need of massive food aid to prevent a serious humanitarian crisis, according to WFP. More than 5 million people in rural areas still face food shortages of varying duration because of shortages in cereal crop production. Chronic poverty, food insecurity, HIV/AIDS and weakened capacity all contribute to the need for assistance to support food insecure households. WFP initiated its Protracted Relief and Recover Operation (PRRO) in 2005 to address this crisis, and focuses on five countries, including Mozambique. Most of WFP’s assistance is being targeted at the central and southern regions of Mozambique, however, where climatic shocks tend to reoccur and crop production has been inconsistent. WFP’s PRRO 10600 identified the south and central provinces as the main target area for food assistance interventions. The vulnerability analysis informing this decision did, however, indicate a large need for food security oriented actions in the Northern provinces. These are integrated within USAID’s food security strategy implemented by various US NGOs. The integration of limited and carefully targeted food assistance within this strategy follows the strategic and operational principles of the PRRO 10600. So the northern region – where Zambezia Province is located – is not receiving assistance from WFP, other than for shorter term emergencies.
Zambezia is one of Mozambique’s most populous provinces, with about 2.9 million inhabitants that also count as some of the nation’s poorest (UNDP 2005). Nationally, 54% of the population lives at or below the poverty level of $1 per day (2003 survey)[11]. Agriculture is the main livelihood for most households in rural Zambezia. In the five districts of Zambezia targeted by ADRA’s project, 96% of survey households report being engaged in agriculture (TANGO 2007). Zambezia has both commercial (3,503 medium farms) and subsistence farmers (773,312 small farms) who collectively produce about 2 million MT of food (cereals, legumes and tubers), with the principal crops being cassava (54%), maize (33%) and rice (12%).[12]
ADRA has had an extremely difficult time getting data on the food gaps in Zambezia province and the target districts in particular. It is also frustrating that the Bellmon analysis commissioned by WVI for all PVO applicants has not been made available by FFP to date. That information would have been helpful in light of the lack of government data available. However, ADRA and World Vision met with the INGC director in Zambezia Province to better determine the extent of the food gap from the government’s perspective. He reported that the province has a maximum of 100,000 families that are vulnerable to shocks. Moreover, today they have 22,000 families resettled from the 2007-2008 flooding emergency. Based on this number of families, INGC considers that 5% are chronically vulnerable, which means they need assistance year-round.
Despite the favorable food production conditions, Zambezia province has a global acute malnutrition prevalence of 5.2%[13] among children below 5 years of age. The weak health and nutrition status is caused by 3 major factors: (1) poor food consumption practices; (2) poor hygiene and sanitation practices and; (3) a generally weak health service delivery system which reaches less than 60% of the population and is dominated by the public sector[14]. Zambezia was ranked the worst province by the 2006 UN report on Childhood poverty in Mozambique, with an estimated 75% of children living in absolute poverty. Deprivation of health and nutrition are particularly profound. According to the UN report, Zambezia province also has the highest percentage of children with severe health deprivation, at 34%. Considering the large population, the absolute number of children in need of support is enormous.
True, the northern region generally has no problem with food availability. But access to food and proper food utilization are large contributors to food insecurity, especially among rural households that survive on subsistence farming. Limited access to food – especially during the hunger gap months of November to February – is mainly caused by limited purchasing power due to low hh incomes. And low incomes are a result of limited economic opportunities in this region, based on low agriculture production levels for most farmers. The 2007 needs assessment conducted in Zambezia province in the target districts illustrated that only about 51% of hh involved in agriculture last year sold some of their produce. The mission USAID/Mozambique is clearly targeting its DA on Zambezia and Nampula provinces (see T. II country specific guidelines) because of the region’s vulnerability to food insecurity. The food basket to be used under this program follows the same principles as outlined in the PRRO 10600.