Banco Terra believes in the Green Revolution. Agriculture is the backbone of the economy providing employment for over 75 percent of the workforce and contributing roughly a quarter of Mozambique’s GDP.
With 36 million hectares of arable land, the agricultural potential of Mozambique is enormous. However, at present only an estimated 10 percent of arable land is in productive use. We believe the financial sector plays a pivotal role in developing this potential, and we are prepared to take the lead.
The agricultural sector is dominated by the family sub-sector which accounts for 90 percent of the cultivated areas and includes 2.5 million households. This sub-sector lacks the resources to invest in expertise, capacity and irrigation schemes. As a result overall yields remain low. The remaining arable land is cultivated by commercial farms that concentrate on cash and export crops.
The Green Revolution can only succeed with a bottom up approach. It is the underdeveloped 90 percent of the economy that deserves special focus.
Banco Terra supports all sectors of the Food Value Chain. With the assistance of specialist partners in the field, we work with small holder associations to improve their organization, improve skills and expertise, make them bankable, and subsequently finance growth and expansion.
We also finance input suppliers, traders, exporters, mills and all players in between. We support commercial farmers and start up ventures.
Our aspiration is to be close to our clients. Hence we are working on the roll-out of the branch network, that will eventually cover the main Agricultural areas of the country. All focused on materializing Banco Terra’s vision of becoming the leading bank in food and agriculture in Mozambique.
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