Rodney Mushongachiware “Food Security and Nutrition in an Urbanizing World” June 06, 2017 Brussels, Belgium The International Food Policy Research Institute (IFPRI), SNV Netherlands Development Organization, and Welthungerhilfe are jointly organizing a one-day event in Brussels on the eve of the European Development Days to explore the challenges and opportunities of urbanization from a variety of perspectives.

1. Sustainable economic development through market systems approach
The urbanization experience in Zimbabwe:
A closer look at challenges and
opportunities for smallholder farmers.
Rodney Mushongachiware
Agricultural Partnerships Trust
Market Linkage Advisor
Twitter: @simba_gokwe6 June 2017

2. Sustainable economic development through market systems approach
The myths and
urbanization
experience in
Zimbabwe

3. Sustainable economic development through market systems approach
• Total population: 15.6 million (2015)
• Urban: 32.4% of total population (2015) – Harare: 2.1million, Bulawayo: 653,337
• Rate of urbanization: 2.3% annual rate of change (2010-15 est.)
• About 70% of population derive livelihoods from agriculture
• Total agricultural land 15.8 million (ha), Arable land 4.31 million (ha)
• Large scale 0.05 % farmers
• Communal: 84.5% million farmers
• A1 & A2: 10.5% farmers
• Old Resettlement: 4.9% farmers
 Urbanization in Harare & Bulawayo creating opportunities for rural farmers
ZimbabweandUrbanization
Gokwe

4. Sustainable economic development through market systems approach
Current situation
• Periodic droughts and food insecurity
• Most horticulture and fruits are imported (from SA)
• Cereal imported from SA and Zambia
The myths!?!
• Import quality is better than local production
quality?!?
• Smallholder farmers have no capacity to
consistently supply the market desired quality?!?
CurrentSituationandthe
myths

5. Sustainable economic development through market systems approach
SIMBA market
programme,
Urbanization and the
myths

6. Sustainable economic development through market systems approach
SIMBAMarketsinBrief Funded By Co-Implemented by
• Duration : 4 years: Nov 2013 – Nov 2017
• Location: Gokwe South District, Zimbabwe
• Previous cash crop: Economy developed through cotton
• Programme progress: 4000 (including 2000 sesame and >1000 chilli farmers) were
linked to markets for horticulture, mung bean, flower seed, sorghum seed and cow
peas seed
• Partners:

7. Sustainable economic development through market systems approach
APTstrategicframework
INFORMATION
FINANCIAL
SERVICES
ADVOCACY
FARMER MARKETS
INPUTS
POLICIES
INFORMAL NORMS
STANDARDS
MECHANISATION
REGULATIONS
TRANSPORT
STORAGE
COMMUNICATION
TECHNOLOGY

8. Sustainable economic development through market systems approach
• Crop Quality?!?
• Production capacity?!?
Disentanglingthemyths
SIMBAProgramme

9. Sustainable economic development through market systems approach
High value
horticulture, urban
markets, challenges
and opportunities

10. Sustainable economic development through market systems approach
• Total area = 27ha
• 1207 farmers from 232 gardens (including 14 community gardens)
• Markets:
• Major: Selby, Refresh
• Minor: FAVCO, FVC, Valley fresh, Bulawayo town markets and Informal
markets
• 110 MT of fresh produce (carrot, beetroot, butternut, onion, peas) marketed into
urban markets.
• One of the horticulture buyers stopped importing carrot and beetroot was exported
as far as neighboring Mozambique.
• On average, farmers made a modest profit (USD $100-$450), Highest farmer
$1203
Highvaluehorticulturefor
urbanmarkets

11. Sustainable economic development through market systems approach
Abutternutharvest..

12. Sustainable economic development through market systems approach
Marketingcarrots..

13. Sustainable economic development through market systems approach
Farmers
• Poor access to information: market demand, quality, prices
• Delays in payment by buyers
• Poor farmer organization (production, marketing, transport) – trust and honest issues
• Low bargaining power or poor confidence of smallholders engaging or negotiating
with big companies
Companies
• High transaction costs (transport, negotiations etc.)
• Traceability
• Private sector unwilling to invest in rural farmers and capacitate them .. business
case?
Formalmarketchallenges

14. Sustainable economic development through market systems approach
Onionaggregation..

15. Sustainable economic development through market systems approach
Informal markets
• Volatile market demand and prices (unguaranteed market)
• No standard grading - very little incentive for grading or producing high quality
• No standards of measurement
Cross-cutting (Formal and Informal)
• Poor infrastructure and transport to support storage of perishable fresh produce
• Formal agricultural extension institutions specialize in traditional crops (cereals and
legumes)
• Low financial literacy – no bank accounts, liquidity crises
• Competition from big suppliers who enjoy economies of scale
• Low capacity of rural smallholder to invest in research and development and
explore new opportunities
• Poor service markets (transport, payment solutions)
Informalandcross-cutting
marketchallenges

16. Sustainable economic development through market systems approach
… for smallholders
• Increasing urban population = increasing demand
• Spill-over effect from production for urban markets to local markets (new types,
nutrition)
• Private sector investment in rural areas
• Contract farming
• Value addition in rural areas (processing on the spot!)
• Growing demand for organic goods
… for private sector investors
• Smallholder farmers are not that specialized
• ICT for managing large number of farmers, traceability
• Marketing: “Buy locally!” - consumers demand to know source of their produce
• Growing demand for organic goods
Opportunities

17. Sustainable economic development through market systems approach
Farmers
• … need to overcome trust issues and organize themselves
Private sector investors
• ... need to develop new business models and invest in smallholder agriculture and young
people
• … need to engage in rural regions in compliance with internationally valid labour and
social standards
• ... need to invest in ICT4D
National governments and facilitating institutions
• … need to hold on to their promise to invest at least 10% of government budget in
infrastructure, health, education and training
• … need to promote reforms to promote the rule of law and business initiatives and assist
companies to adapt and change their business models
• Develop sustainable service markets (together with private sector) e.g. payment
solutions
• Identify ways to target youth and reverse the aging rural population
• Nutrition education needed to increase the market base and demand for some crops
NGOs and partners
• … can assist farmers with visions through sharing of success stories and exchange
visits
Recommendations

18. Sustainable economic development through market systems approach
• Farmer commodity groups, group dynamics and sharing of success stories.
• Distinguish the productive and poorest farmers.
• Affordable financing for productive smallholder farmers.
• Donors need to negotiate with governments on creation of an enabling environment.
Wayforward

19. Sustainable economic development through market systems approach
Thank you