1

Fair Trade and susTainable Trade in MOZaMbiQue

2

MANAGING EDITORCarl MICHIELS

COORDINATIONPhenyx43

EDITORDan AZRIA - Phenyx43

DESIGNJulie RICHTER - Phenyx43

COVER PHOTOCredit: International Livestock Research Institute / Mann

This publication of the Trade for Development Centre does not represent the official opinion ofthe Belgian Development Cooperation

Brussels, December 2011

3

INTRODUCTION

A PRESENTATION OF MOZAMBIQUE

FAIR TRADE

FAIR TRADE IN MOZAMBIQUE

SUSTAINABLE TRADE IN MOZAMBIQUE

CONCLUSION

5

7

13

21

33

39

4

5

INTRODUCTION

Mozambique, in southern Africa along the Indian Ocean, gained its independence in 1975 to sink into an incredibly bloody and devastating civil war that only ended in 1994 with the organization of the first free elections in the country’s history.

Today Mozambique remains among the poorest countries of the world with high levels of HIV infection (15% of the population), devastating droughts, very low literacy rates and devastating infrastructure.

Yet the country is experiencing strong economic growth (nearly 8% per year) and is renowned for its good governance and efforts to improve people’s living conditions.

Its natural heritage is one of the finest and best preserved of the world.

Mozambique is now discovering the advantages of fair and sustainable trade, suppor-ting pillars for sustainable economic and social harmony, respecting nature, women and men.

6

Créd

it : Artisans d

u Mond

e - Nd

emM

agaruque, M

ozamb

ique - C

redit: R

osino

7

A PRESENTATION OF MOZAMBIQUE

WILD WONDER

A HISTORY OF MOZAMBIQUE

A RAPID DEVELOPMENT

8

Pemba, Mozambique - Credit: Rosino

Located on the eastern shores of Africa, the former Portuguese colony borders South Africa, Swaziland, Zimbabwe, Zambia, Malawi and Tanzania. With over 800 000 sq km and nearly 2,500 km of coast-line, Mozambique is crossed by two major rivers of southern Africa, the Zambezi and Limpopo.

The very diverse flora varies according to climate. Along the coast lie the mangrove and coconut groves while to the north-west, near Tanzania, and along the rivers, the rainforest dominates with its vegetation layers.

In the south, near the borders with South Africa and Swaziland, and around the capital, Maputo, the savan-nah dominates for hundreds of kilometres.

Mozambique has a unique wildlife, both on land and at sea. The lush plateaux in the northwest, wild islands in the ocean and Lakes Malawi, Chilwa and Cahora Bassa are home to hundreds of species of birds, insects, mol-luscs, reptiles, birds and mammals that inhabit the va-ried ecosystems. Elephants, monkeys, hippos and buffaloes are still nu-merous in the national parks despite decades of war, and dozens of varieties of birds such as hummingbirds, gulls, ravens, herons or flamingos colour the sky.

As to the seabed, it teems with crawfish, shrimp, crabs, octopus, sardines, tuna and sharks that are sporting in the warm and crystalline waters of the Indian Ocean between the islands and coral reefs.

With its huge coastline on the Indian Ocean,Mozambique is today considered one of the most beautiful and wildest countries in the world.

WILD WONDER

9

A HISTORY OF MOZAMBIQUEVa

sco

da

Gam

a, Il

lust

ratio

n of

Lui

s d

e C

amoe

s, 1

880

- U

nite

d S

tate

s Li

bra

ry o

f Con

gres

s

Crossroads of civilizations

Like many southern African countries, the lands of present-day Mozam-bique were home to waves of Bantu-speaking populations who settled the whole region. Then Indian, Arab, Indonesian and Chinese sailors discovered these shores and set up trading posts to export gold, iron and copper.

In his ‘‘Book of Wonders of India’’, one of the oldest historical accounts about this region, an Arab merchant described, in 945 CE, the arrival on these shores of ‘‘a thousand boats’’ from islands ‘‘located in front of China’’ in search for raw materials and slaves.

So, trade was important for the area well before the advent in 1498 of Vasco da Gama, the first European to reach these shores. The Portuguese navi-gator halted on these shores and made contact with local people and parti-cularly with the Sultan Mussa Mbiki who ran a small island off Madagascar. The name of that sultan was used to designate this island and later the en-tire African coast and was pronounced Moçambique in Portuguese.

The colonial period From the early sixteenth century, the Portuguese took possession of land in the region and developed the trade in ivory and precious metals, and the slave trade with the assistance of local African chiefs. From 1752 the territory of Mozambique had an autonomous colonial mili-tary administration, subject to the discretion of representatives appointed by the homeland.

Throughout the nineteenth century, Africa was the scene of struggles between European powers. The British, who denounced the inconsistency of the Lusitanian colonization and its refusal to abandon the slave trade (abolished in 1836), face the Portuguese who tried to maintain their decli-ning authority over the region.Economic exploitation of Mozambique was entrusted to private companies and concentrated on sugar cultivation. It was not accompanied by any de-velopment of social or productive infrastructure. In 1929, when these companies’ mandate ends, Mozambique was a poor, underdeveloped and poorly controlled territory.

Not until the early 1930s when António de Oliveira Salazar came to power in Portugal did a proactive policy regarding the Lusitanian colony finally emerge. The Portuguese dictator encouraged emigration to the colonies and, between 1930 and 1970, the number of Europeans in Mozambique increased from 30 000 to 200 000. The main activities remained the cultiva-tion of sugar cane, tea and cotton.

10

The war of independence

In 1962, the Front for the Liberation of Mozambique (Frente de Libertação de Moçam-bique, FRELIMO), an anti-colonial, Marxist and revolutionary movement was founded. It was supported by the USSR and engaged in armed struggle against the Portuguese administration. Despite the assassination in 1969 of its historic leader, FRELIMO took

control of part of the country. But the escalating situation in 1972 with the creation of a national resistance move-ment Marxist (RENAMO) by the secret services of Rhodesia, a neighbouring country led by a white minority backed by the racist regime of South Africa.

Thus, while the Carnation Revolution in 1974 put an end to the Salazar dictatorship in Portugal and opened the door to negotiations between the authorities and independence movements, some of the Portuguese settlers, inspired by the example Rhodesian, violently opposed the country’s independence. It was finally proclaimed in June 25th 1975.

Sixteen years of civil war

Despite the agreements with the Portuguese govern-ment planned the organization of multiparty and de-mocratic elections, the new president Samora Machel, a founder of FRELIMO, monopolizes power, sets up a socialist dictatorial state that aligns with the Soviet bloc.On the economic and social side, the decisions taken by the government proved disastrous. Nationalizations of farms and industries, forced consoli-dation of villagers in communal villages, border closure, abandonment of the main communication infrastruc-ture. Those measures, as well as the departure of tens thousands Portuguese executives, lead the country to the edge of ruins in less than 2 years.

In addition to these economic and social difficulties there were important political issues. Like other countries of the continent, Mozambique was weakened by regional power block games. RENAMO, the anti-Marxist movement financed and supported by Rhodesia and South Africa, opposed by a bomb campaign, kidnapping children and systematic sabotage, plunging the country into a civil war that las-ted sixteen years.

Finally, democracyMozambique is among the last victims of decolonization and the Cold War. But peace has been finally established. While hundreds of thousands of expatriates returned home, the first free elections in the history of the country in 1994 saw the victory of Joaquim Chissano who carried out the requested reforms and encouraged white farmers from South Africa and Zimbabwe to install themselves in Mozambique and to develop farming and the cultivation of tobacco, corn, soy beans, sunflowers and pepper.

Since then, Mozambique, which had been one of the three poorest countries in the world for nearly twenty years, has experienced sustained economic growth. Since 1995, the annual grew from 6 to 8% per year and the World Bank cited Mozambique as ‘‘a model of success. Success in terms of growth and a model that shows other countries how to make the most of international aid.’’ 3

The impact of this destruction and this fighting was compounded by a devastating drought that struck the country with famine and exodus2. Recognizing the failure of his policy, the government of Samora Machel returns to its early 1980s’ reforms and approached the IMF, and the World Bank. The death of the Mozambican president in a plane crash in 1986 accelerates this movement and the new president, Joa-quim Chissano turns away from the USSR and the com-munism movement, seeking the financial assistance from the United States and Europe and encourages foreign investments.

The fall of the Berlin Wall and the end of the concurrent Soviet Union and the apartheid regime of South Africa leading to reconciliation and the enemies of yesterday, On October 4, 1992, a peace agreement is signed in Rome between the party in power and the movements that are hostile.

In sixteen years, the civil war in Mozambique killed millions, many refugees in neighbouring countries and four millions displaced within the country.

Ern

esto

Che

Gue

vara

and

Ed

uard

o M

ond

lane

(fou

ndin

g of

FR

ELI

MO

) in

Feb

ruar

y 19

65 -

Cre

dit:

Min

istr

y of

SR

E in

Cub

a

11

A RAPID DEVELOPMENTDespite a high rate of growth since the end of the civil war, Mozambique remains a very poor country and heavily depends on international aid (which covers over 50% of the state budget).

Damages of the country’s fragile infrastructure during the war caused very long de-lays in the development that the proactive policy of the government is trying to coun-teract. Progress is slow but real.

Controlling inflation, productive investments, low public debt, attracting of foreign companies... illustrate the efforts in terms of good economic governance of the Mo-zambican state with the support of international organizations.

Significant disadvantages

Essentially, the problems that Mozambique is facing are the results of a difficult history.The burden of a sterile colonization, a destructive Marxist regime and a bloody civil war weight heavily on the deve-lopment of the country which must build modern infras-tructure, invest in education and strengthen its image of an investor-friendly country.And many obstacles remain.HIV and AIDS, which affect more than one and a half mil-lion people (nearly 16% of the population in which 60% are women and 100,000 children), is significantly weake-ning the productive generations and shifting the social cost (such as the support of some 600,000 orphans) on the elderly and a few NGOs.

The effects of the pandemic are even more damaging as health systems and education are still very fragile.

With a life expectancy of about 41 years and a high (but sharply dropping) infant mortality, Mozambique, occu-pies the 165th place out of 169 in the UNDP human de-velopment index in 2011 and must incorporate into its economic development policies the rapid improvement of welfare and living conditions of its population.These challenges are particularly difficult to meet since the country is also weakened by major climatic distur-bances (droughts, floods, cyclones...) which cause re-current food insecurity.

Maputo, Mozambique - Credit : Hansueli Krapf

Moz

amb

ican

wom

anC

red

it: D

avid

Gou

gh /

IRIN

12

A huge potential

Despite these handicaps, Mozambique has much strength to address in the future. The Stabilization and the establishment of democracy have particularly allowed the advent of a governmental team that showed maturity and proactivity in his political decisions. Fighting against poverty has a top priority, the Mozambican power imple-mented economic and social programs that have attracted the support of internatio-nal donors.Those action plans, that identify main public sectors (education, health, infrastruc-tures, agriculture and rural development, good governance of public affairs and pro-vide important structural reforms of the state, the revision of the tax system and the fight against corruption.Recognized by a growing number of international traders, Mozambique’s economic strengths are many. But they remain under-exploitation, al in the areas of energy (gas, hydro, oil offshore) mining (coal, titanium, gold, precious stones) or services (telecommunications).Moreover, its location is an advantage in the field of transportation and energy sup-ply compared to neighbouring landlocked countries (Malawi, Swaziland, Zambia and Zimbabwe).Finally, even though agriculture (cotton, sugar, cereals, tea, coffee, cashew nuts) re-mains one of the most important sectors of the economy in terms of employment (84% of the workforce, 28% of the GDP) it is in the fields of tourism and services that prospects for growth are most significant.With such assets Mozambique has become the third largest destination of foreign direct investments in southern Africa, after Angola and South Africa. Undeniably, it is a land of opportunity.

Shared GrowthMozambique receives significant support through international development assis-tance. The Mozambican state has become known for his severity, dynamism and determination to make poverty reduction the priority of its overall policy. Efforts realized in the economic sector (trade liberalization, sector development, investment promotion, Financial Reforms, etc.) allowed the insertion of substantial resources for the improvement of living conditions of the population. The situation remains very difficult for many Mozambicans but significant progress has been made, particularly in education (school enrolment index up sharply), in health (infant mortality declined, increased number of care centres) and access to drinking water.7

‘‘One of the poorest countries in the world at independence, Mo-zambique’s economy has grown at over 8 per cent during the past 10 years, the highest rate among African oil-importers. Between 1997 and 2003, three million people were lifted out of poverty, no-tably in rural areas. Child mortality has dropped and school enrol-ment has risen substantially.’’

World Bank6

Chi

ld o

f Moz

amb

ique

- C

red

it: F

H M

ira

13

FAIR TRADE

THE ORIGINS OF FAIR TRADE

WHAT IS FAIR TRADE ?

THE LABELLED AND THE INTEGRATED SYSTEM

AFRICAN FAIR TRADE ORGANIZATIONS

14

Fair Trade was born from a simple observation: The wealth gap between the populations of the richest countries and those of the poorest countries continues to grow despite the investments in development aid.

THE ORIGINS OF FAIR TRADE Wars, natural disasters failing infrastructure and corruption are among the causes of this imbalance; however, structural economic problems also play a major role. Speculation in raw materials, the debt spiral, subsidised com-petition from producers in industrialized countries; all these mechanisms constitute obstacles to the sustainable growth of the poorest countries that are unable to control their development.Although these commercial inequalities have been apparent since the nineteenth century (in particular with the pu-blication in 1860 of the novel of Eduard Douwes Dekker in which Max Havelaar is the main character), it was only in the post-war years that the first fair trade projects appeared, promoted by the US and the British organizations (Ten Thousand Villages in the US and Oxfam in the United Kingdom).

It was in 1964, at the United Nations Conference on Trade & Development (UNCTAD), that the concept of fair trade was defined for the first time with the founding principle of “Trade, not Aid”.

The first fair trade shops opened in Europe in the 1960s, while the cooperatives and producer associations who were to benefit from these fairer trading exchanges, initially in crafts and agriculture, were being set up in developing countries.

Récolte d

e sucre de canne, K

asinthula Cane G

rowers, M

alawi - C

rédit: K

enneth Havgaard

/ Max H

avelaar

15

The fair price must cover all pro-duction costs, including environ-mental costs, and guarantee the producers a decent standard of living. In addition, buyers of fair trade undertake to pay additional pre-miums that are used for produc-tive investments and/or social programmes (literacy, access to care, etc.).

Cot

on é

qui

tab

le, S

énég

alC

réd

it: S

tefa

n Le

chne

r /

Fairt

rad

e A

fric

a

In practice, fair trade guarantees producers in the poorest countries more remunerative purchase prices than world prices as well as relative price stability and the establishment of favourable payment periods and terms (and the possibility of advance financing), which means small farmers and craftsmen are no longer obliged to virtually give away their products or resort to loan sharks.

WHAT IS FAIR TRADE?In 1999, the main international organizations for fair trade (the World Fair Trade Organization - WFTO,

Fairtrade International - FLO, the European Fair Trade Association - EFTA and the Network of European

World Shops - NEWS) agreed on a common definition:

‘‘Fair trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater

equity in international trade.

It contributes to sustainable development by offering better trading conditions, and securing the rights of,

marginalized producers and workers - especially in the South.

Fair trade organizations, supported by consumers, are actively engaged in supporting producers, awareness-

raising and campaigning for changes in the rules and practices of conventional international trade.’’

To support the implementation of this economic system, these organizations list

11 key principles

1. Creating opportunities for economically disadvantaged producers

2. Promoting transparency and credibility

3. Capacity building

4. Promoting fair trade

5. Payment of a fair price

6. Commitment to non discrimination, gender equity and freedom of association

7. Providing decent working conditions

8. Outlaw child labour

9. Protecting the environment

10. Promoting trade relations based on trust and mutual respect

11. Promoting respect and the dissemination of cultural identity in valued products and production processes (new principle)

16

THE LABELLED AND THE INTEGRATED SYSTEM

The coexistence of these two systems illustrates the existence of different concepts of fair trade, pertaining in particular to the type of relationship to be established with the private economic players (mul-tinationals, supermarkets) and to differing views on development (and denunciation of international trade) on one hand, and a business out-look based on regulation, on the other hand.

Since 1988 and the creation on one hand of the WFTO, the World Fair Trade Organization (called IFAT, the International Fair Trade Association until 2009) and on the other hand the launch of the Max Havelaar label, two main fair trade regulation systems have emerged and coexisted:

The main characteristic of the his-toric method of fair trade organiza-tion, the integrated system, is the fact that all the players participating in the creation and marketing of the product (producer, processor, im-porter and outlets) are committed to fair trade and comply voluntarily with its principles. With its 400 member organizations representing all the links in the fair trade chain (producers, processors and distributors), the WFTO has been regarded since its creation in 1989 as the main coordinator of organizations in the fair trade sector.

Recently, the advocates of this model have started developing a system that would enable these production chains to be formally certified (see below).

The labelled system relies on the certification of the marketed product.The businesses producing these products undertake to comply with defined specifications and to source their products from organizations of producers in developing countries (often cooperatives) who have been approved by the labelling organiza-tion, an independent organization that certifies the compliance with the criteria of the label.The labelled products can then be marketed at any outlet, including conventional supermarkets.The Fairtrade label is the best known among labels, but there are also other labels (namely Fair for Life, Fairwild, Ecocert EFT, Naturland Fair) with their own ap-proach or logic.

17

The fair trade organizations in Africa are mostly brought together under ‘cupola’ or-ganizations that represent them internationally.

THE AFRICAN FAIR TRADE ORGANIZATIONS

COFTA

The Cooperation for Fair Trade in Africa, COFTA, was founded in 2004. It is the regio-nal chapter of the World Fair Trade Organization (WFTO). On this account, the African organization, headquartered in Nairobi, Kenya, brings together and represents the producer members of the WFTO in 24 countries of the continent, which are mainly active in handicrafts (80% of the network) and aim at eliminating poverty through fair trade.Since its establishment, COFTA has fought for a strong and independent conti-nent by strengthening the technical and commercial capacity of African small-holders and by developing new markets. Along with coffee and fruit, crafts were one of the first sectors to benefit from fair and sustainable trade. The attention paid by major organizations of the sector to traditional know-how and heritage has long provided support to social initiatives in developing countries.But the fair trade market for crafts has evolved and, with less than 20% of the mar-ket share, the African crafts(wo)men are experiencing a continuous decline in their income, whereas Asian and Latin American producers see steady growth. Such is the finding of COFTA, which points among the specific causes of this crisis, to the difficulties encountered by the African producers to meet quality and performance standards (deadlines, volumes and prices) imposed by importers, as well as the fact that the main fair certification systems are inadequate for the African realities.

COFTA and the WFTO Fair Trade System

In response to the many demands of its members around the world (including Africa), the WFTO has developed its own certification system. The WFTO Fair Trade System is presented as “a comprehensive, effective and light certification system, designed to transform any economic activity into a fair and sustainable activity.’’7 This new certification has some obvious advantages for cooperatives, value chains, enterprises and associations of producers in developing countries. Indeed, unlike the Max Havelaar Fairtrade label (for example), it applies to the entire organization and all its products and services and should allow targeting both local and export markets. Specifically, compliance with this voluntary WFTO Fair Trade System standard certifies that an organization has established a set of good social, economic and environmental management practices and procedures. After a successful audit, conducted by an independent third party, the product sold by the certified organization may bear a label certifying that its origin and production are consistent with the principles and practices of fair trade.The World Fair Trade Organization has launched an international consultation pro-cedure to clarify the criteria for this new certification system, which is in its second version now. The finalisation of the WFTO Fair Trade System depends on recommen-dations made following pilot studies in in Asia, Europe, Africa and Latin America.

Fair

Trad

e in

Sen

egal

Cre

dit:

Ho

Vis

to N

ina

Vola

re

18

In Africa COFTA steers the design work for the new WFTO Fair Trade System certification. The fair trade organization has set up an integrated work programme to raise awa-reness among African producers about the FTMS, to contribute to pilots trials planned by the World Fair Trade Organization and to support the first organizations that wish to start in this process.The programme is first implemented in five countries (South Africa, Tanzania, Uganda, Rwanda and Senegal) through case studies that will eventually qualify the needs of craftsmen and producers.

CO

FTA

at

the

SIA

O T

rad

e Fa

ir -

Cre

dit:

Sha

red

In

tere

st (L

icen

ce C

reat

ive

Com

mon

s)

To find out more: www.cofta.orgwww.befair.be www.wfto.com/sftms

With the support of BTC’s Trade for Development CentreThis large-scale mission entrusted to COFTA is part of a project that is supported by the Trade for Deve-lopment Centre of BTC, the Belgian development agency. The stakes are major.Indeed, the African organization wants to ensure “support for the African producers who without a voluntary programme to improve their competitiveness will be left far behind and will lose an even larger market share. Moreover, certification requires producers to invest resources that are not available to most small producers in Africa.’’11

The goal of the project supported by COFTA is clear: to ensure that African producers take up the new certification system. To do this, COFTA must raise awareness and identify the specific needs of African producers so the WFTO take their needs into consideration in the final stages. Afterwards COFTA will have to deploy and coach technical support structures across the continent for small producers who want to start the certification process.

With the financial support of BTC, COFTA can carry out all programmed activities: identification of organi-zations of artisans and producers wishing to evaluate the new certification system, conducting workshops in the five countries selected, assessment of the activities, presentation of recommendations made by the producers at WFTO conferences, preparation and implementation of a first series of training session for interested groups.

This is to give African producers and artisans technical and commercial instruments that will enable them to become part of the vast progress that fair and sustainable trade is witnessing today.

“Our vision sees a continent that is stronger thanks to fair trade. COFTA considers fair trade a movement in which the African crafts(wo)men and farmers can together undertake to access a sustainable and dignified life.’’

COFTA

Cre

dit

: CTB

/ D

iete

r Te

lem

ans

19

FAIRTRADE AFRICA Founded in 2004 in Addis Ababa in Ethiopia as the Africa Fairtrade Network (AFN), Fairtrade Africa is an independent organization that represents all Fairtrade certified producers in Africa.

As such, Fairtrade Africa’s main function is bringing the producers together with the governing bodies and certification organizations of FLO International.

Fair trade Africa operates through three regional networks: Eastern Africa Fairtrade Network (EAFN) based in Moshi, Tanzania; the West Africa Fairtrade Network (WAFN) based in Accra, Ghana; and Southern Africa Fairtrade Network (SAFN) based in Cape Town in South Africa. A new regional network has recently been established in North Africa.Fa

irtra

de

Afr

ica

mee

ting

in D

akar

Cre

dit:

Fai

rtra

de

Foun

dat

ion

To find out more: www.fairtradeafrica.net

THE SOUTHERN AFRICAN FAIRTRADE NETWORK - SAFN

The Southern African Fairtrade Network (SAFN) is the regional body that represents Fairtrade Africa (and Fairtrade International) with producers in countries of southern Africa.The main objective of this body is therefore to reconcile the different levels of deci-sion-making and provide both vertical communication (international bodies to pro-ducers and vice versa) and horizontal communication (between certified producers).As a regional organization, the Southern African Fairtrade Network brings together national networks of certified producers in Malawi, Zimbabwe, Madagascar, Mauri-tius and South Africa (Fairtrade South Africa).

To find out more: www.safn.org.za

20

Mand

a Wild

erness, Mozam

biq

ue - Cred

it: Mand

a Wild

erness

21

FAIR TRADEIN MOZAMBIQUE

AGRICULTURE IN MOZAMBIQUE

FARMER SOLIDARITY ORGANIZATIONS IN MOZAMBIQUE

AGRICULTURAL FAIR TRADE INITIATIVES

OTHER FAIR TRADE INITIATIVES

Compared to some of its neighbours (South Africa in particular), Mozambique is obviously lagging behind in fair trade. This finding, based on the very low number of certified producer groups and the lack of intermediary organizations in the country is explained by the contemporary history of Mozambique.

Indeed, access to fair trade (which in practice means the certification of producers or products or sales to certified operators) involves meeting certain structural re-quirements (independent producer organizations, transparent value chains) and requires significant time to be taken up (usually several years).

From raising awareness among producers to certification itself through the training of technicians and formalisation of procedures, accessing fair trade takes time.However, it should be remembered, Mozambique has been stable for only fif-teen years or so and the economic and social structures inherited from the regime that was in place before the establishment of democracy in 1994 were those of a Marxist, authoritarian and centralised state in which economic actors had very little autonomy. This explains it.

22

From collectivism to homesteads

With a large area of arable and fertile farmland (only 14% of land is cultivated while it is estimated that 46% of the land is suitable for agriculture) and favourable climatic and geographical conditions,Mozambique holds many agricultural assets. Unfortunately, the sector also has inherited significant weaknesses from the past.During the colonial period, the country did not benefit from production infrastructure development program- mes that other African countries had and the col-lectivist and authoritarian policies adopted by the Marxist regime after independence mainly upset the fragile existing facilities. Then came the war, and for

AGRICULTURE IN MOZAMBIQUESTILL A LONG WAY TO GO

Subsistence farming

From the beginning, land ownership for small produ-cers and farmers’ families was one of the main pillars of the reforms, which initially aimed at supporting sub-sistence farming. Farm plots are small (1.2 hectares on average per farm) and few farms are oriented towards commercialisation. The means available to farmers are modest or archaic (hoes and ploughs). The use of selected seeds, fertilizers and pesticides is very limited, yields are still low (despite significant progress) and the land is usually cultivated using traditional methods. The main crops are maize, rice, sorghum, millet, cassava, sweet potatoes, beans and a variety of vegetables. Agricultural exports are tobacco, cotton, cashew nuts, sugar, copra, tea and lemon.11

Threats to food security

Modernization of agriculture is essential to the country’s food security. Yet, Mozambique faces many obstacles. The scourge of HIV and AIDS affects mil-lions of rural families with serious consequences on the food supply. A survey by the Food and Agri-culture Organization (FAO) of the United Nations has highlighted the fact that over 40% of families

over fifteen years the country’s strengths were swept away by violence and fighting.Once peace was concluded in the early 1990s, the Mozambican government was aware of the necessary changes to be undertaken in this sector which feeds almost 80% of the population. An extensive programme of investment and restructuring (PROAGRI) was launched to “create an enabling environment for agricultural market develop-ment, to improve the efficiency of public support services to agriculture and regulate agricultural markets and the use of natural resources.’’10

where one member is affected by AIDS/HIV are forced to reduce the amount of land under cultivation and 60% of them were forced to reduce the number of cultivated varieties.If the structural transition is quite a success with a significant development of land ownership and control-led liberalisation (although with severe social conse-quences), the fact remains that the Mozambican farmers badly lack means and funding. Moreover, the basic production infrastructure (irrigation networks, sto-rage facilities, slaughterhouses...) are still insufficient and marketing channels are still weak and ineffective in some provinces.

Another major problem faced by Mozambican produ-cers is access to inputs. Indeed, the demand for high-quality seeds far exceeds local supply, which contri-butes to the underdevelopment of many areas, resulting in shortages and a heavy reliance on export seeds.13

The impact of natural disasters should be added to that. Seasonal flooding of the mighty Zambezi River and its tributaries and droughts in arid regions contributes to regular periods of food insecurity.

Moz

amb

ican

farm

ers

Cre

dit:

CTB

/ C

harlo

tte

Tayl

or

23

Coveted land

In recent years, Africa has faced a relatively new phenomenon: the massive purchase of land by foreign organizations or companies. From Japan to Sweden, through China, many countries are interested in the fertile land of the black continent for large farming projects. Thus, according to the United Nations, about 30 million hectares of land would have been purchased or leased in the past three years by foreign investors who take advantage of very low prices for land, cheap labour and weak or failing regulations.14

With nearly a million and a half acres already granted and a ten times higher demand, Mozambique is one of the preferred destinations for such investments.15 However, this phenomenon poses enormous problems in this country where, for a long time, farm families have operated and cultivated land, which was abandoned by Portuguese settlers, without title. Diamantino Nhampossa, executive coordinator of the Farmers Union of Mozambique (UNAC - see following pages) denounces this situation :“In financial terms, the Mo-zambican state is probably taking stock in such agreements. But the lands granted are presented as ‘idle’ while many are actually occupied by village communities. (...) Much land seems empty indeed as it is used for grazing or is left fallow for three or four years to maintain soil fertility. It is often granted by the State to investors without any consultation with local communities, which is totally illegal under Mozambican law. And when there is ‘consultation’, it is generally limited to traditional leaders that businesses and government officials have no difficulty in corrupting... So there are more and more land conflicts in the country because people refuse to lose land that is vital to their survival.’’16

This struggle of rural communities for their land is at the core of the actions of farmer movements in Mozambique.

To find out more: www.oxfamsol.bewww.farmlandgrab.org

Manda Wilderness, Mozambique - Credit: Manda Wildernes

24

FARMER SOLIDARITY ORGANIZATIONS IN MOZAMBIQUE

The National Peasants Union of Mozambique (UNAC)

The abandonment in the late 1980s of communist dogma led the government to liberalize the agricultural sector in response to the demands of international donors, which resulted in replenished markets but forced producers to comply with the requi-rements of international competition.It is in this context that in 1987 networks of cooperatives came together, with go-vernment support, to discuss the future of farmers’ movements. On this occasion the National Peasants Union (UNAC) was created as a national organization for farmers, production cooperatives and local and regional associations.

Upon invitation of Oxfam, Ismael Ossemane, a representative of UNAC, recalls : “The end of the war brought great relief and great joy. (...) But, in the minds of farmers, the nature of the economic system-socialist or capitalist was of little importance insofar as this does not influence on their actual situation. Reality for them was the end of shortages for staples. But actually getting into a market economy, the rural population does not notice the change immediately because the FRELIMO party continued to do-minate, but over the years, things have become clearer to them. After consciousness emerges from greater freedom but economic policy imposed a greater productivity in order to buy consumer goods. Neoliberal policies eventually have negative effects for farmers. It was the «freedom in poverty.» The rich dominate instead of the party.’’17 (Quoted by the Brussels association Amigos de Mocambique).

Bitter debates arose between the Mozambican government, which wanted to sell plots of lands (to foreigners in particular), and the peasants, who had made such plots their land and homes, often providing them with their only source of income.To counter this government pressure, UNAC has approached other peasant move-ments in the world, especially in Brazil among the «landless», and these contacts were fruitful. UNAC became the first African organization to join Via Campesina, the global peasant movement.

Since its establishment, UNAC, which has about 65,000 members, has won renown for its fight for land ownership for peasants of the land that they occupied (often without formal title) at the end of the war.

For more information: www.oxfamsol.bewww.amigos-de-mocambique.org

UNAC is supported by Oxfam. It mobilises farmers for sustainable development and respect of the rights and cultures of rural communities and for countering the extreme liberal policies of the Mozambican go-vernment and the pressure of foreign investors.

Wom

en’s

mee

ting,

Moz

amb

ique

C

red

it: E

ntre

pre

neur

s of

the

Wor

ld

25

The Widow’s Revolt

In the early 1980s, at the height of the civil war that tore apart the country, while many men died in the violence, were forcibly recruited or exiled in neighbouring countries, a group of women created the General Union of Cooperatives of Maputo to pool and share their meagre resources. Many of these women were senior, lived in poverty or were widows.

Julieta and Rosita Lhamine were part of the creation of this movement. They recall : ‘‘It was really difficult. We had to constantly make sure the fighters of RENAMO (National resistance of Mozambique, a very violent anti-Marxist movement financed and supported by Rhodesia and South Africa) did not approach. We continue to work, but in the afternoon it was often impossible. Even now, my heart aches from anger and from fear of dying. I still see the bodies of those who were caught and beaten to death while we were fleeing; bodies that we had to bury afterwards’’ says Julieta; and her sister continues, ‘‘we had no pumps or watering cans or hoses. So, we created the General Union to support our cooperative and try to get these imple-ments»: «We had no pumps or watering cans or hoses. So, we created the General Union to support our cooperative and try to get these implements.’’18

The General Union of Cooperatives of Maputo (UGC)

In the field it assists members in obtaining topographi-cal surveys and other documents required for obtaining land titles, while its most charismatic representatives (in-cluding Celina Cossa who has also become the head of UNAC) campaign in the Parliament for the adoption of a more favourable reform of land law. This struggle of many years has been fruitful. The vast majority of producers acquire formal titles for the cultivation of the plots that they farm and the new law on land tenure adopted in 1997 formalized these ar-rangements and defends the rights of small producers. Moreover, the UGC’s lobbying had significant impact on women’s rights. Thus, the new legal framework promotes equality of women and men when it comes to obtaining land titles and stipulates that the inheritance of land must occur “regardless of the gender’’ of the parties concer-ned.19

The Mozambican government was impressed by the work of the farmers’ organization and even asked UGC to join the committee that oversees the implementa-tion of land tenure.

Along with the farmers

Twenty years later, the UGC is one of the largest agricultural enterprises in Mozambique and the main source of supply for fruits, vegetables and poultry for the capital Maputo.

The organization, which brought the cooperatives of the region together over the years, was completely restructured when the government implemented its policy of liberalization.Whereas initially it was a production organization, now it turned into a service cooperative by offering its members technical training and financing, which banks refused to offer. In the 1990s, the UGC also distinguished itself, along with the National Farmers Union of Mozambique (UNAC) in assisting members to acquire officially abandoned land that they cultivated.This struggle for political and legal access to land mo-bilized all the forces of the organization for many years. Celina Cossa, President of the UGC recalls, “When we saw that we risked losing the land, we took steps in time.’’ The organization is active on all fronts.

26

Undeniably fair

These results are particularly telling. Strictly speaking, the General Union of Cooperatives of Maputo is not formally certified sustainable or fair but the considerable human and social impact of its activities, and the commitment of its members to the values of sharing undeniably make it a major player for social progress and a key witness of the benefits of trade and of the economical solidarity in Africa.

“There can be no community or national development,without the contribution of women.’’

Celina Cossa,

President of the General Union of Cooperatives of Maputo

Winner of the 1998 Leadership Award for Africa’s sustainable control of hunger

Winner of the 2009 Leadership Award for Food Security

Development and Solidarity

The achievements of the General Union of Cooperatives of Maputo are impressive. From a marginal organiza-tion it has grown into one of the most powerful farmers organizations in the country (with 10,000 members grouped into 200 cooperatives) and its leaders are highly considered and welcomed around the world today. It has become a real reference.These successes are based as much on the values of solidarity, which the women defend, as on their economic and commercial successes. By supporting a diversification of activities among its members during the first years of peace and by developing poultry farming with own resources and funding from the World Bank, the organization became the largest producer of chickens in Mozambique.The results in terms of development are particularly significant. The average incomes of producing members of the organization are 50% higher than average national minimum wage. “When you consider that our members are mostly illiterate, have reached a certain age and

therefore rarely find a job, whatever it is, we better un-derstand the important role of cooperatives in the eco-nomic and social life of the most disadvantaged people, and women in particular.’’ says Celina Cossa20 .

Beyond support services to production, the organiza-tion also offers its members health benefits and child care. For several years, significant resources have been devoted to educating women (representing 95% of members). Technical training is provided in agriculture and livestock business but also in carpentry and crafts creation.In addition, general education and literacy courses are systematically offered. Women’s education is indeed considered a priority, as Celina Cossa, President of UGC, underlines because this education “prepares the women for leadership in their community.’’22 Moreover, the UGC funded the construction of health centres where primary care is offered. These are free for members of the organization.

To find out more: http://spesmru.intnet.mu/sepac/ugc.htmwww.pbs.org/hopes/mozambiquewww.fao.orgwww.un.orgwww.fanrpan.org

Celina Cossa, President of UGC, received the 1998 Leadership Award for Africa’s sustainable control of hunger awarded by the NGO Hunger Project, and the 2009 Leadership Award for Safety awarded by the Food Network FANRPAN (Food Agriculture Natural Resources and Policy Network Analysis).

27

AGRICULTURAL FAIR TRADE INITIATIVES

IKURU, flag bearer of fair trade in Mozambique

Post-war

In the 1960s, 40% of world production of cashew nuts came from Mozambique. Then came the revolution, war and the establishment of a Marxist dictatorship and all the productive economy of the former Portuguese colony has collapsed. It was not until the 1990s when the democracy and the liberalization have returned, this industry that is the emblem of Mozambique have been restructured and the first production systems were set up and enabled small producers to market their crops again on national markets.The story of Ikuru begins at that time in the province of Nampula. This region of northern Mozambique produces most of the country’s peanuts (especially cashews) beside other traditional

food crops (maize, beans, soy beans...).In this area, climatic conditions are very favourable and soils are particularly fertile, but farms suffer from poor market access, after the war that has been recently over, infrastructure destroyed and the major markets like Maputo, the capital, at more than 1200 km south. Moreover, the value chains are completely disorganised and farmers who, finally, can grow their own crops after years of collectivism lack resources and expertise.

Affected by these weaknesses, they have no other choice but to sell to local intermediaries that impose particularly harsh conditions.

The rewarded efforts

With the support of the American NGO CLUSA (Cooperative League of the United States), which from 1995 onwards encouraged the processes of modernization in the value chain, small producers of cashew nuts and peanuts are organised into local primary cooperatives called ‘‘forums’’ and then in secondary cooperatives.Training schemes are provided, both in agricultural areas and in management and mar-keting.Then, in 2003, Ikuru (meaning «strength» in the Makua language) is established. It is a trading company, owned by the producers of the region that is financially supported by Oxfam Novib, a Dutch NGO, and by GAPI, a local NGO. Ikuru, a major player in the sector buys, transports, sorts, packs and markets the agricultural products (groundnuts, cow-pea, sesame, cashew nuts and soy beans) of its members, some 25 000 farmers (inclu-ding 40% women), who are organised in 120 local cooperatives. The organization soon achieves results and the harvested volume purchased from local producers and sold on domestic markets increased from 367 tonnes in 2003 to 1332 tonnes in 2006.25

The first organic and fair trade certified organization in Mozambique

2006 was a turning point. Ikuru, which was not content with only increasing sales volumes, obtained Fairtrade certification for its peanuts and cashews (100 tons). That same year Ecocert, a French agency, provided organic certification for the groundnut, sesame and soy crops. The benefits of this dual certification were quickly apparent. First, the purchase price for Fairtrade certified crops is 25% higher whereas containers with organic products can be sold at even higher prices.P

rep

arat

ion

of c

ashe

w n

uts,

Nam

pul

aM

ozam

biq

ue -

Cre

dit:

Ton

Rul

kens

To find out more: http://spesmru.intnet.mu/sepac/ugc.htmwww.pbs.org/hopes/mozambiquewww.fao.orgwww.un.orgwww.fanrpan.org

28

“Fair trade is a very good thing for our region. Today the market is in the hands of large traders and our society, Ikuru, is the only one in Mozambique, which is owned by the producers themselves. Now we can interfere on prices we get. Without fair trade, we would be forced to sell to these large corporations.’’

Moises RaposoProducer Member of Ikuru 27

Quality Development

Ikuru’s fair production is marketed to major fair trade importers (Equal Ex-change, Sainsbury) and has allowed the organization to receive more than $ 50 000 in Fairtrade premiums. These funds were mainly reinvested in the purchase of new seeds, upgra-ding storage facilities (warehouses) and the acquisition of new machines (for shelling, cleaning and packaging nuts) through which the Mozambican organization has increased productivity and extended its control to the en-tire production and commercialisation chain.Ikuru producers have indeed fully grasped the importance of productive investments that increase the value of their products and allow them to negotiate under better conditions.The Fairtrade premiums have also helped finance some social projects, es-pecially in education (building schools) and access to potable water (wells).

To find out more: www.ikuru.orgwww.chooseliberation.comwww.oxfamnovib.nl

Ikuru is a member of Liberation Nuts, which brings together organizations of fair nut producers from Malawi, India, Bolivia and Mozambique.Founded at the initiative of two pioneering fair-trade organizations, Equal Exchange and Twin, Liberation Nuts was established to assist member associations of producers in the production of nuts of the highest quality in sufficient quantities to enter the European (especially British) markets where these products are sold under the brand name of Liberation Nuts.Created as a Community Interest Company (CIC) with the support from Comic Relief, the Hunter Foundation, the Trade for Development Centre and others, Liberation Nuts is oned for 42% by the Inter-national Nut Producers’ Cooperative (INPC), which

brings together eleven fair producers organizations in the world , including Ikuru.

This is essentially a commercial initiative that al-lows the fair nut producers in developing countries to pool their investments in production and trade to sell better and more to the European markets, Libe-ration Nuts is also networking with these organiza-tions, as pointed out by Moises Raposo, a member of Ikuru: “ Now through being part of Liberation we are joined with international partners in Malawi, Bo-livia, Nicaragua, Brazil, Peru, El Salvador and India which is very good for us all. This is very, very exci-ting for us and a gives us a sense of pride and hope for the future.’’ 28

To find out more: www.chooseliberation.comwww.naturalchoices.co.uk

LIBERATION NUTS, the world of fair nuts

29

“we are currently working with 30 producers in the value chain of this project. But next year we hope to significantly increase the area cultivated for fair trade and to double the number of producers in-volved. We encourage them to dedicate two to five acres each to the next campaign.’’29

Inspired by the example of Ikuru, another organization of producers of cashew nuts has committed itself recently to fair trade.

MUECATE, the Producers Union of Namilato

In the district of Muecate, in the Nampula province, the Cashew Producers Union of Nami-lato has been involved in a pilot project initiated by the Institute of Export Promotion (IPEX) to fair trade certify part of its peanuts and cashews production.At the end of 2010, a partnership with SNV, the Dutch development agency, led to Fair-trade certification of a small part of the production to be marketed in the Netherlands and Great Britain.This pilot project, which has so far involved only a small number of producers of the Union, is due to become larger. Indeed, the low volumes certified (48 tons) do not allow for any significant economic and social gains. Yet, this is a first success and the team in charge of the project is ambitious, as explains Salamande Fideliothe, the team leader of the pilot project within IPEX:

Cashew

s - Cred

it: Mid

ori

Salamande Fidelio, Team Leader of the pilot

To find out more: www.snvworld.orgwww.mozluso.com/Noticias

It is too early to assess the economic and social impact of this transition to fair trade for the producers of Muecate but a first set of conclusions can be drawn while ending the experimental phase. SNV emphasised the importance of the preliminary work that was done to sensitise and train the farmers involved. These preparatory activities have already helped to restructure the functioning and the organizational bodies of the farmers’ organization, to substantially improve crop quality and to renew aging plantations (more than 10,000 new trees have been distributed).30

Pee

ling

cash

ews,

Moz

amb

ique

Cre

dit:

Erik

Cle

ves

Kris

tens

en

30

OTHER FAIR TRADE INITIATIVES IN MOZAMBIQUEFor many years, fair trade has mainly been dedicated to agricultural production (coffee, fruit, etc.), which was the first to benefit from the attention of reference organizations in this area (particularly Fairtrade International). As part of the labelled system, the first specifications developed by these European or North American instances actually aimed to define the precise criteria to label a particular agricultural production (as is the case for example for Ikuru peanuts and cashews). Then, the field of expertise of these labelling organizations spread to other sectors, inclu-ding some very specific ones such as Fairtrade certification of footballs produced in Pakistan). As an actor of the inte-grated system, the World Fair Trade Organization (WFTO) took an early interest in the crafts sector by hosting members of groups of craftsmen from southern countries. COFTA (Cooperation for Fair Trade in Africa), the regional WFTO branch for Africa, brings together over 70 organizations or groups of producers on the continent. But not yet in Mozambique.

So, if one considers fair trade enterprises as organizations whose products are certified under the labelled system (Fair-trade, Ecocert Fair, etc.) or members of large federations of the integrated system (WFTO), only two agricultural orga-nizations are fair trade organizations in Mozambique in late 2010: Ikuru and, recently, the Cashew Producers Union of Namilato. But things seem about to change.

«It is easy to tell that Mozambique is completely off the map as far as fair trade is concerned. There is no member of COFTA that works in Mozambique. Make it one of our aims, becoming the first to be listed amongst the reputable members of COFTA.» Baobart - September 2010 31

BAOBART, fair craft in Mozambique

Baobart calls itself a group of Mozambican artisans determined to promote and market their creations on international markets in accordance with the principles of fair trade. This seems even more interesting as the main source of popular crafts of the country seems to be the flea market of Maputo.Some of the architects of the organization Baobart were supported by the international organization ATA (Aid To Artisans) but now they want to sell their products directly to retailers of African art in Europe and North America by using the Internet and online commerce.

Black wood sculptures, hand-woven tapestries, bracelets, colourful dishes and jars... the works offered by Baobart illustrate the expertise and talent of the Mozambican artisans who gathered in this organization. Boaventura is one of those who have embarked on this adventure. He is one of the very few artisans in the country who lives from his art. His sculptures, which are inspired by the many birds that frolic in the sky of Mozambique, are famous in Maputo. At a very young age, he was asked by officials of Aid To Artisans, an organization that supports and promotes artisans in many developing countries. It was actually thanks to them that he was able to acquire the machine that allows him to dry out the roots of mafureira, to stretch and twists and carve them for his creations. Like all those presented on the Baobart website (http://mozambiquecraft.blogspot.com) these works are deve-loped in respect of natural resources and the wood used comes from protected forests. Baobart is a recent initia-tive but the commitments made by the organization towards the craftspeople that it brings together and promotes, underlines its commitment to the values of fair trade, especially with regards to remunerating the creators. These are indeed paid according to rates set by the Fair Wage Guide, an online calculator (www.fairtradecalculator.com) developed to ensure a fair income to artisans in developing countries.Thus, the organization undertakes to pay Baobart artisans which it promotes “255% above the poverty indicators’’.32

Innovative, dynamic and virtuous, this project deserves to succeed. Good luck to Baobart (and buy their products).

To find out more: http://mozambiquecraft.blogspot.comwww.fairtradecalculator.com

Crafts of M

ozambique - C

redit: Baobart

31

FAIR AND SUSTAINABLE TOURISM IN MOZAMBIQUE

Issues of fair and sustainable tourism

With almost 12% of global GDP and almost 200 million workers, tourism is one of the most important sectors of the globalized economy and it is one of the sectors that has witnessed sustained growth. This growth is particularly visible in the South, a sunny destination that is popular among Westerners.Yet, populations from countries of these countries in general receive little of this man-na, which first and foremost benefits the operators of the tourism industry (airline companies, tour operators, hotel chains…), whereas the activities on site are often to the detriment of the well-being of local communities (hyperconcentration of infras-tructure, environmental damage, child labour, begging, prostitution…)33.

For tourism to become a true vehicle for human development, it is better to regulate it and ensure it is generating wealth and well-being for local people.

Fair and sustainable tourism offers answers that are relevant to all these issues. Here is a definition34 :Fr

uit

selle

r, M

aput

o, M

ozam

biq

ueC

red

it: J

ohn

Pol

lock

Indian Ocean - Credit: United Nations Environment Programme

“Fair and sustainable tourism refers to the founding concepts of fair trade and is based on a just and control-led organization of the entire production chain. This ensures the reinvestment of profits in local development in the region. Three major concepts underlie the principle of sustainable development: ecology, economics and ethics. Fair and sustainable tourism is based on these three concepts as it contributes to the long-term development of ecology, the economy and respect for host countries.’’

32

Fairtrade in Tourism South Africa to Mozambique

On June 13, 2002 Fair Trade in Tourism South Africa was established. It is the first national label of fair and sus-tainable tourism which aims to “ensure that the people whose land, natural resources, labour, knowledge and culture are used for tourism, actually benefit from tou-rism.’’36 The Fair Trade in Tourism South Africa label is recogni-zed by Fairtrade International and attributed to tourism organizations that meet a set of specifications, based in particular on the following principles :

Fair distribution of income among the various actors involved in the activityDemocracy and participation (all stakeholders involved in decisions that affect them)Respect for human rights, cultures, traditions and the environmentTransparency in managementSupport for local development

To find out more: www.fairtourismsa.org.zahttp://satravellers.blogspot.com

Ilha

do

Ibo,

Moz

amb

ique

- C

red

it: R

osin

oIlh

a d

o Ib

o, M

ozam

biq

ue -

Cre

dit:

Ros

ino

Mozambique, the unspoiled paradise

White sandy beaches and well preserved coral reefs with exceptional marine life such as whales and dol-phins that swim between the islands from June to October…

Investors have long ignored the sunny and wild shores of Mozambique, which are among the finest in the world, and tourism is a sector which has witnessed strongest growth in recent years with the advent of entrepreneurs and foreign visitors.Overall, one cannot help but be impressed with the political choices of the Mozambican authorities in their efforts to relate these investments to environmental pro-tection and biodiversity. Thus, the government rejected several projects in January 2011 that had not submitted the requi-red impact studies for “the environmental permits’’ required for new infrastructure35.

Since the end of 2008, Fair Trade in Tourism South Africa works in partnership with the Mozambican Ministry of Tourism to develop a charter to certify virtuous initiatives in the tourism sector in Mozambique. Funded by the Swiss State Secretariat for Economic Affairs, this project should be completed in 2012 with the establishment of a national certification system similar to that established in South Africa.

33

The Nkwichi Lodge is a beautiful fair and sustainable initiative. It is a holiday complex on the eastern shore of Lake Malawi-Niassa, known for its crystalline waters and rich marine life. With its large sandy beaches that are bordered with vir-gin forests, the Nkwichi Lodge offers stone and that-ched cottages that are comfortably furnished and over-look the shimmering bay.Photo safaris, diving, hiking, traditional food... the acti-vities and the services offered suit the beauty of the site.

But Nkwichi Lodge is not just a paradise; it is also one of the most recognized and acclaimed fair and sustainable tourism projects. Indeed, everything here is designed to respect and pre-serve the environment and involve local people. The luxury cottages have been built from natural materials from the forest, the site runs exclusively on solar power and the meals served in the restaurant are made from locally grown fruits and vegetables and cooked in large stone ovens that are fired with dead undergrowth wood.

It is no doubt ecologic, but the main reason Nkwichi Lodge serves as a benchmark for sustainable tourism is its impact for the development of the local communities. The Manda Wilderness Community Trust, which was created by the founders of Lodge Nkwichi as a distinct entity, aims to promote and support the development of the region and to protect the environment.

The organization supports 16 communities representing some 20,000 people who choose and carry out deve-lopment projects.

Since its creation, the Manda Wilderness Community Trust has enable inhabitants of neighbouring villages to obtain title to the lands on which they live and it has sur-veyed, marked and registered a natural protection zone of approximately 130 000 hectares as a community development are for responsible tourism are within which hunting and destructive agricultural techniques are strongly discouraged. The Manda Wilderness Community Trust has also funded the creation of an experimen-tal organic farm where local people learn to diversify their diet as well as several village schools and housing for teachers. Microfinance, sports activities, provision of bicycles... the list of actions financed and supported by the Manda Wilderness Community Trust in the region is truly im-pressive.

Nkwichi Lodge and the Manda Wilderness Community Trust have been awarded for sustainable tourism and responsible investment such as the prize for Africa’s Leading Responsible Tourism Company presented on the occasion of the 2009 World Travel Awards and the prize for Best Small Hotel awarded on the occasion of the 2008 Responsible Tourism Awards.

NKWICHI LODGE and the MANDA WILDERNESS COMMUNITY TRUST

To find out more: www.mandawilderness.org

A village near Nkwichi Lodge - Credit: Manda Wilderness

34

Mozam

biq

ue Island - C

redit: FH

Mira

35

SUSTAINABLE TRADE IN MOZAMBIQUE

PHYTOTRADE AFRICA

BIO ÓLEOS DE MAXIXE (BOM), THE BEST OF NATURE

THE SOFALA INITIATIVE

BEES AND HONEY

While fair trade is still not widespread in Mozambique (with only a few organi-zations being certified or in process of being certified), the situation is somewhat different in terms of sustainable trade.

As we shall see, many organizations in Mozambique are aware of the need to include the country’s economic development while respecting the unique na-tural environment and to link these projects to the welfare of populations and communities.

36

WHAT IS THE SUSTAINABLE TRADE?The International Institute for Environment and Development defined sustainable trade in 2000 as follows:

Sustainable trade takes place when the international exchange of goods and services yields positive social, economic and environmental benefits, reflecting the four core criteria of sustainable development:1. It generates economic value2. It reduces poverty and inequality3. It regenerates the environmental resource base4. It is carried out within an open and accountable system of governance.

Fair trade and organic are specific models of sustainable trade.

PHYTOTRADE AFRICA

Since the 1990s, many economic sectors are increasingly interested in natural products and their pharmaceuticals, phytosanitary, food and/or cosmetics virtues. Companies and their researchers are increasingly interested in biologi-cally diverse resources from developing countries and in the traditional knowledge of their local community about the environment. However, such attention is not without risks as these people often do not master the marketing process and may find themselves stripped of their resources and know-how.PhytoTrade Africa was established in 2001 in Johannes-burg with the support of the International Fund for Agri-cultural Development. PhytoTrade Africa, which is the trade name of the Association of Southern Africa for the Marketing of Natural Products, was established to help smallholder African farmers to increase the value of natural products they grow (or gather) and allow them to leverage marketing outside their home region.Since its establishment, PhytoTrade Africa accompanies small communities of farmers (mostly women who usually harvest natural products) throughout southern Africa and helps them take ownership of the valuation techniques and sales on new markets and, in keeping with the values of fair trade, biodiversity and environmental sustainability.In 2006, nearly 30,000 rural producers (with over 90% of women) have sold raw or processed plant resources to PhytoTrade member organizations for a total of 384 000 USD. Incomes are modest but strongly contribute to the livelihoods of the poorest in the region37.

To find out more: www.phytotradeafrica.com

Baobab fruit - Credit: Baomix

37

The BOM project has the following objectives:

Providing technical support to community associations in order to facilitate the production and commercialization of high quality organic oils.Developping organizational and business capacity of community associations. Providing a consistent market to participating association members for sustainably-harvested local oilseed.Promoting food security through income generation and the promotion of nutri-tious speciesTraining and engaging local men and women in the extraction of specialty cold-press oils, as well as the production and packaging of value-added, market-ready productsPromoting the preservation of Mozambique’s native forests and their dwindling resourcesBringing additional income into communities by arranging third party organic and ethical trade certificationcertification of the production of these communities for added value.

Made from the forest trees seeds in Mozambique (ma-fura, baobab and marula), oils sold by BOM are used for cosmetics (skin care, lip balms and body oils, sun screens and bath soap). The head office and workshops of the company are located in the Inhambane province in southern Mozambique, where the collected oils from rural communities are treated, processed and packaged.When asked about this project, Ana Lyman and Allan Schwartz insist that their company “aims to create wealth for rural communities through a forgotten resource until today. We want to put this precious resource in the hands of members of these communi-ties. (...) With higher incomes, they will have better ac-cess to education and health.’’The founders emphasise: “the heritage aspect of this project is just as important. Through BOM, we support the conservation of these basic resources by encoura-ging the planting of new trees, especially native species. We use proven and mastered techniques of forest re-generation to ensure that there is no loss of biodiversity and to restore what was lost by developing sustainable food production. By working with us, partner communi-ties benefit economically from the restoration of these forest resources.’’39 In summary, this is the real sustainable trade.

BIO ÓLEOS DE MAXIXE (BOM), the best of nature .

Created in 2008 by Ana Lyman and Allan Schwartz, an entrepreneur known for his work on sustainable trade, Bio Oleos de Maxixe (BOM) is a company that aims to commercialize natural oils produced from oilseeds harvested and prepared by the rural people of Mozambique. It is a member of PhytoTrade Africa. BOM works for the development of communities and to “promote community invest-ment in the environment, provide secure income to vulnerable populations, develop the production of native species and promote the consumption of local products of high quality and environmentally friendly.’’38

To find out more: www.bom-mozambique.com www.phytotradeafrica.comwww.bidnetwork.org

San

sevi

eria

kirk

ii, M

ozam

biq

ue

Cre

dit

: Ton

Rul

kens

Baobab, Mecufi, Mozambique - Credit: Ton Rulkens

38

Abandoned forest

For many years, primary forests of Mozambique were abandoned while they served as makeshift shelters for war victims and for the country’s poorest rural commu-nities, who were too preoccupied with their survival to be interested in the preservation of these trees, some of which are considered the finest and rarest of the world. The Sofala Initiative history began in the early 2000s in the province of the same name, in Dondo, where a small cooperative of artisans was in jeopardy because it failed to sell its carved wooden objects to very few tourists. These creations are made from tree species from the beautiful surrounding forests. The colours are rich and intense, from maroon to dark ebony.

Treasures to be discovered

Allan Schwartz is an architect and environmentalist. After teaching eco-construction in the U.S., he worked alongside local Mozambicans to raise awareness about sustainability issues. On an occasional visit to the re-gion, he discovered the works of the craftsmen of Dondo and ranks alongside to develop a more profitable and environmentally friendly business.Five years later, the jewellery made by artisans of So-fala are all the rage in fashion magazines and on de-signer platforms. “The beauty of the bracelets and their sustainable ethnic side opened the doors of mainstream and green and ethical markets. At the Fashion Week in Paris, they met with great success and are already ex-ported to South Africa through an agent and a network of small retailers. A European agent distributes them to Belgium, France, Greece, Italy and the UK. They are also exported to the French Caribbean and the United States where they are popular with New Yorkers.’’40

This success is the result of a smart partnership esta-blished between the Dondo cooperative, a private en-terprise from the Mezimbite forest centre specialized in high-end accessories and the forest community of N’Hatanga, with the support of the International Trade Centre, which provides financial and technical assis-tance to the project.

THE SOFALA INITIATIVE,COMMUNITIES PRESERVE THE FOREST

Preserving these resources

From the beginning of the project, which was named the “Sofala Initiative’’, the emphasis has been on preser-vation of forest resources. A plan was developed with the forest community of N’Hatanga to ensure that the number of trees cut is lower than the number of trees replanted. A baseline inventory has been drawn up and the sustainable yield of each species was calculated. A nursery was established and community members who formerly cut trees to make charcoal, a harmful and des-tructive activity, have become experienced loggers or nursery workers.The Sofala Initiative is a global project in which each group has found its place. By outsourcing production of wood to the forest community members who ensure the preservation of forests, artisans can focus on their creations and thus increase revenue.

The project evaluation conducted by the International Trade Centre is eloquent : “On average, the Sofala Initia-tive has increased wages by 14 while the population of the country only manages to survive on an average salary of 250 dollars per year. The success of the pilot initiative has expanded the project to six new community groups; jobs were created and the number of direct beneficiaries grew from 25 to 50 and an estimated 500 people has indirect employment and income generated.’’41

Helping other communities

The Sofala Initiative has generated tremendous interest both from development assistance organizations and Mozambican authorities. A study has confirmed that nearly two hundred local forest communities could bene-fit from what is considered a model for sustainable trade. “The project can be replicated in other priority areas. The idea of involving poor communities in the value chain while producing export products is an effective strategy’’ Project manager Patricia Sennequier explained42. Since, the project was taken over by the Mozambican government, which integrated it into its development plans.

To find out more: www.forumducommerce.orgwww.allanschwarz.com

Agroforestry, M

ozambique

Credit: Ton R

ulkens

39

BEES AND HONEY

Traditionally, in rural areas of Mozambique, honey producers use the bark of trees to build hives. But this method proves lengthy and expensive and devastating to biodiversity.V&M Grain & Co. has developed a new method based on the use of cheaper and environmentally friendly materials. This solution uses organic waste coconut and bamboo mixed with mud.With the support of the Dutch development organization SNV, the com-pany V&M Grain & Co. will provide nearly 5000 hives to bee keepers in Mozambique.This project, which appears to be a small one, could have a major impact in terms of nature andf forests conservation but also in terms of economic development. In terms of biodiversity, there are thousands of trees that will be spared, reducing deforestation. But this new process will also allow bee keepers to easily increase the number of their hives. And, the increase in the number of bees has a direct impact on the pollination of all plant spe-cies with known effects on the yield of crops like corn, beans and sesame.

But the project did not end there.

In fact, SNV has set up an overall strategy to support bee keepers and to train them in the management and maintenance of these ecological hives and in fair trade and organic standards with the goal to establish a certified honey value chain. This high added-value production will be purchased from producers at a good price and sold on European markets by a new company, the Mozambican Honey Company, which is owned for 50% by V&M Grain & Co and its private partners and for 50% by the producers themselves43.According to preliminary estimates, after five years, the 5000 Mozambican producers associated with the project expected to produce 500 tonnes of organic honey per year which shall be paid two dollars a kilo.An increase of income for the bee keepers is estimated at one million dollars.44

Remunerative, fair and sustainable. Magic.

To find out more: www.snvworld.org www.bidnetwork.org/page/155612

2009 finalist for the “Nature Challenge’’prize, organised by the Worldwide Fund for Nature (WWF), V&M Grain and Co. is a South African company specializing in the supply of materials and seeds for small producers in southern Africa.

The company is especially known for his innovative and sustainable approach in the field of bee keeping.

Afr

ican

hon

eyb

ees

(Ap

is m

ellif

era

scut

ella

ta)

Cre

dit:

Sco

tt B

auer

, US

DA

Agr

icul

tura

l Res

earc

h S

ervi

ce

Bees (Apis indica) - Credit: Ghimire Bishwo

40

41

CONCLU SION

Mozambique is without doubt one of the most beautiful countries in the world (and also one of the poorest).After decades of war and dictatorship, new elites emerge who are renowned for their skills and sense of national solidarity. The time has come for this country to join the concert of nations, to bring its heritage and knowledge to the world and to benefit from that.Sustainable and fair trade is not widespread yet and the country, which is a newcomer on the global market, opportunities to improve the living conditions of its population and base its development on respect for its unique natural heritage.A dream to fulfil.

Child

ren from villages near N

wiki Lod

ge - Cred

it: Mand

a Wild

erness

42

SOURCES AND REFERENCES

1 Source : http://fr.wikipedia.org/wiki/Histoire_du_Mozambique2 Source : University of Laval (Quebec) - http://www.tlfq.ulaval.ca/axl/afrique/mozambique.htm3 Michael Baxter, World Bank Representative, Mail and Guardian quoted and reprinted in Courrier International’s June 30-2005 and

http://fr.wikipedia.org/wiki/Histoire_du_Mozambique. 4 Source : www.diplomatie.gouv.fr5 Source : Idem6 Source : : International Development Association (IDA), World Bank - http://web.worldbank.org7 Source : Idem8 Source : www.wfto.com9 Source : COFTA Application Form - BTC - August 200910 Source : World Bank - http://web.worldbank.org11 Source : Patrice Deramaix, «Agriculture in Mozambique, potential and challenges» - www.amigos-de-mocambique.org12 Source : «Mozambique : the subsistence agriculture suffers from HIV / AIDS» - Future Health - September 4, 2004

www.futura- sciences.com13 Source : FAO - www.fao.org14 Source : Frédéric Janssens, «Land Grabbing : farmland grab in Africa», Oxfam Solidarity, March 15, 2010 - www.oxfamsol.be/fr/

Land-Grabbing-razzia-sur-les.html15 Source : Idem16 Source : Idem17 Interview and synthesized by E. Bonnet and P. Deramaix April 24, 2004

www.amigos-de-mocambique.org/agir/luttespaysannes.htm18 Source : Hopes of Horizon - www.pbs.org/hopes/mozambique/transcript.html19 Source : Africa Recovery, United Nations publication - www.un.org/french/ecosocdev/geninfo/afrec/vol12no4/womenfr.htm20 Source : Idem21 Source : FAO - www.fao.org/ag/againfo/themes/fr/infpd/documents/econf_bang/africa1.html22 Source : Africa Recovery, United Nations publication - www.un.org/french/ecosocdev/geninfo/afrec/vol12no4/womenfr.htm23 Source : Idem24 Source : Menesia Muinjo et Geline Fuko, «Female farmer scoops award for food production», Septembre 1, 2009

http://africa.ipsterraviva.net/2009/09/01/female-farmer-scoops-award-for-food-production25 Source : www.ikuru.org 26 Source : www.chooseliberation.com/mozambique.html27 Source : Idem28 Source : Idem29 Source : www.mozluso.com/Noticias 30 Source : «SNV support to the Mozambique Cashew Industry.pdf» - www.snvworld.org31 Source : Baobart, Septembre 3, 2010 - http://mozambiquecraft.blogspot.com32 Source : http://mozambiquecraft.blogspot.com/p/fair-wage-guide.html33 Source : South African Travellers - www.satravellers.com et http://satravellers.blogspot.com34 Source : Idem35 Source : www.lesafriques.com/mozambique/des-projets-touristiques-rejetes-au-mozambique.html?Itemid=32036 Source : www.fairtourismsa.org.za37 Source : «The trade of pesticides in Africa opens new markets for natural products» - www.phytotradeafrica.com38 Source : www.bom-mozambique.com39 Source : www.bidnetwork.org/page/114311/en40 Source : International Trade Centre, « Mozambique : communities preserve the forest» - No. 3/2006

www.forumducommerce.org/news/fullstory.php/aid/970/Mozambique:_les_communaut_E9s_pr_E9servent_la_for_EAt.html41 Source : Idem42 Source : Idem43 Source : www.bidnetwork.org/page/15561244 Source : www.snvworld.org/en/countries/mozambique/aboutus/news/Pages/NewsPage1006000.aspx

43

Trade FOr deVelOPMenT CenTre

Trade for Development Centre is a Belgian Development Agency (BTC) programme.

We believe that fair and sustainable trade is a way to decrease poverty. It gives smallholders in the South the op-portunity to develop in a sustainable way. We work around three main themes:

> Trade Support

Financial Support

As part of the Trade for Development Centre (TDC), the Producer Support Programme aims at identifying smallhol-der organizations (cooperatives, associations, businesses) that develop fair and sustainable trade projects and at providing financial support to them as well as financial management and marketing expertise.

Marketing Support

The Centre is expert in «marketing and sales». It supports BTC-projects who want to bring their consumer products and -services on the market. We offer:• Advice in business and marketing • Analysis of the market• Coaching in marketing

> Expertise on fair and sustainable trade

The Trade for Development Centre is a centre of expertise that keeps track of the evolution of fair and sustainable trade. The TDC tries to inform consumers, authorities, producers and other economic actors as objectively as possible about existing labels and guarantee systems, among other things.

We disseminate information via our website, newsletters and various publications. We also participate to seminars

about fair and sustainable trade.

> Raise awareness

The Trade for Development Centre organizes campaigns to encourage consumers, economic stakeholders and Belgian public authorities to eat, drink and use fair and sustainable products from developing countries.

44

CTb - belgian deVelOPMenT agenCyTrade FOr deVelOPMenT CenTre

rue hauTe 1471000 bruxellesT +32 (0)2 505 19 35 www.bTCCTb.Orgwww.beFair.be