Feed the Future Mozambique Agricultural Innovations ...

Feed the Future Mozambique Agricultural Innovations

Activity (FTF Inova)

Quarterly Report (October 1–December 31, 2019)

Maputo, January 2020

Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova): Quarterly Report (October 1–December 31,

2019)

This publication was produced by FTF Inova for the United States Agency for International

Development (USAID), USAID Contract Number AID-656-C-17-00001, at the request of the

USAID Mozambique Mission. This document is made possible by the support of the American

people through USAID. Its contents are the sole responsibility of the author or authors and do

not necessarily reflect the views of USAID or the U.S. Government.

USAID/Mozambique Contact:

Elsa Mapilele, Contracting Officer’s Representative, FTF Inova

[email protected]

Contact:

Luca Crudeli, Chief of Party, FTF Inova

[email protected]

Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova): Quarterly Report (Oct. 1, 2019–Sept. 30, 2020) i

Table of Contents Table of Contents ............................................................................................................... i

Acronyms............................................................................................................................ ii

1 Executive Summary ..................................................................................................... 4

2 Management Approach ............................................................................................... 5

2.1 Management and Administration ..................................................................................................... 5

2.2 Partnership Facility .............................................................................................................................. 7

3 Technical Activities ...................................................................................................... 8

3.1 Input Distribution Network System ............................................................................................... 8

3.2 Supply Chain Management System ................................................................................................14

3.3 Supporting Services Systems ..........................................................................................................18

4 Monitoring, Evaluation, and Learning ...................................................................... 25

4.1 Progress on Performance Indicators ............................................................................................25

4.2 Behavior Changes in the Market System .....................................................................................28

5 Collaboration, Learning, and Adapting (CLA) ....................................................... 29

5.1 CLA Activities ....................................................................................................................................29

5.2 FTF Inova Research Activities ........................................................................................................30

6 Communications ........................................................................................................ 32

6.1 Communications Activities .............................................................................................................32

Annex 1: Key Activities as of Q1 FY 2020 ..................................................................... 34

Annex 2: Key Activities for Q2 FY 2020 ........................................................................ 39

Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova): Quarterly Report (Oct. 1, 2019–Sept. 30, 2020) ii

Acronyms

AICAJU The National Cashew Processors Association

AIPM Agro-Imbeu Parque e Máquinas

BAGC Beira Agricultural Growth Corridor initiative

BOP Bottom of the pyramid

BPA Blanket purchasing agreement

BRC British Retail Consortium

CAICC Centro de Apoio a Informacao e Comunicacao Comunitária

CATs Commodity aggregators

CdA Casa do Agricultor

CEP Centro Empresarial Provincial of Manica

CLA Collaborating, learning, and adapting

COP Chief of Party

CRM Customer relationship management

DAP Draft animal traction

ECA Empresa de Comercialização Agrícola Ltda

ESD Enterprise and Supplier Development

FTF Feed the Future

FTF Inova Feed the Future Mozambique Agricultural Innovations Activity

FY Fiscal year

GPS Global positioning system

ha Hectare

HACCP Hazard Analysis Critical Control Point

HEI Higher education institution

HTP Hired tractor power

ICT Information and communications technology

ISPM Instituto Superior Politécnico de Manica

INCAJU Cashew National Institute

K2 Klein Karoo

KDT Ka Da Terra

kg Kilogram

LTTA Long-term technical advisor

MEL Monitoring, evaluation, and learning

MeTL Mohammed enterprises Tanzania Limited

MGT Mozambique Good Trade

MOU Memorandum of understanding

Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova): Quarterly Report (Oct. 1, 2019–Sept. 30, 2020) iii

MSD Market systems development

MZN Meticais

PO Purchase order

PYD Positive Youth Development

Q Quarter

SHF Smallholder farmer

SMEs Small and medium-sized enterprises

STTA Short-term technical advisor

TU Tractor unit

UBS UniLurio Business School

UCM Universidade Católica de Moçambique

USAID United States Agency for International Development

VAT Value-Added Tax

VBA Village-based agents

WII Weather index insurance

Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova): Quarterly Report (Oct. 1, 2019–Sept. 30, 2020) 4

1 Executive Summary The Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova) is a five-year market systems development (MSD) activity that began in February 2017. It works with businesses to increase productivity, access higher value markets that offer inclusive income generating opportunities and become more resilient. FTF Inova strives to be innovative, catalytic, and responsive to market and social-political dynamics. The project addresses root causes of dysfunction in market systems in collaboration with market actors. Fast changing complex systems require a “fail fast and iterate” mentality that allows the program to identify the most transformative and sustainable opportunities in the market. FTF Inova is well equipped to rapidly probe innovations and leverage changes at scale in the market system when innovations are successful. This is an iterative and progressive approach that may start with a small activity – such as probing new technology or a new product or service in the market – the results from which may lead to scaling up or further interventions or investments.

This quarter, FTF Inova registered significant progress and investments by input companies in intensifying collaboration and expanding outreach into rural areas. Innovations that were, until now, probed within individual partnerships are being brought to scale by establishing and strengthening partnerships and broader changes in the market system. All of the input companies that FTF Inova has worked in the past, and is currently working with today, have continued to invest to improve customer value and sales during the agricultural inputs buying season. Some early signs of market changes include input suppliers’ increased interest for collaboration and market alliances as well as increased investments in customer services and value; these have led to increased adoption of seeds by smallholder farmers (SHFs) and more sales, a sign that will be reinforcing the need to further expand outreach and deliver value to farmers. The work with scale agents such as Casa do Agricultor (CdA), Bayer, and UniLurio Business School (UBS) offer opportunities to bring these innovations to scale, reaching more agro dealers and their smallholder customers.

The work FTF Inova carried out in quarter (Q) 1 to strengthen supply chains was intense, and the project is starting to see the emergence of a growing number of innovations by commodity buyers who have traditionally been reluctant to try new ways of doing business. During the quarter, FTF Inova made good progress with piloting suppliers’ clubs with Miruku Agro-Industria (Miruku), Novo Madal, and Olam, and the project started to leverage their experience to bring these innovations to scale, involving other crops procured from SHFs. The sector is also showing an increasing appetite for collaboration and strategic alliances amongst market actors, something that can help companies reach further and share costs. Innovations related to certification and traceability in cashew have slowed due to the negative contingencies in the sector. In this area, FTF Inova has, however, scaled-up engagement and started dialogue with the National Cashew Processors Association (AICAJU).

The growth experienced in the input distribution and supply chain functions in the market is being increasingly supported by a number of services that, thanks to FTF Inova, see the agriculture sector as a viable market. New marketing services, an essential function to provide feedback on the needs and preferences of farmers as consumers, are about to be launched by two FTF Inova partners, Tangerine and Forcier. New, important services in logistics have taken off this quarter, including AppLoad, an online logistics platform that improves transparency, certainty, quality, and lower costs for transport. The main importer of affordable tricycles has developed a vision for market penetration and has signed up key partnerships with CdA and AppLoad for joint efforts. While FTF Inova’s work with radio stations has slowed in the aftermath of the political elections, the effort of bringing universities closer to the realities of the agriculture entrepreneurial world is bearing fruits. UBS has successfully modified and adapted its courses and internships to serve the agriculture sector better, and a similar approach is now being replicated with the Universidade Católica de Moçambique (UCM). Finally, FTF Inova has also seen some initial progress on extending financial services, having midwifed the piloting of a new collateral free credit product by Absa targeted at agriculture.


2 Management Approach

2.1 Management and Administration

2.1.1 Systems and Workflow

Value-Added Tax (VAT) Reporting. FTF Inova submitted the quarterly VAT Report for Q1 to USAID

on January 15, 2020.

2.1.2 Procurement

2.1.2.1 Operations Procurement FTF Inova concluded two main procurement processes, listed below. Both awards will be effective January 2020 to the end of the project.

• Security Services for the Chimoio office.

• Cleaning Services for the Nampula and Chimoio offices.

• Project vehicle comprehensive insurance.

To streamline procurement requirements for ongoing services and avoid a duplication of efforts, FTF Inova released an expression of interest for events management and marketing firms as well as logistics companies. A bidder's conference was conducted and potential service providers were pre-selected.

2.1.2.2 Technical Procurement • CdA, Deal Note 3. FTF Inova supported CdA with 4 procurements, including:

• Branding, design, and catalog. FTF Inova continued coordinating meetings between the awardee, Panavideo - Produção e Realização Lda, and CdA to ensure the completion of design content for an online shop and the development of a digital catalog. FTF Inova issued 2 contract modifications extending the period of performance. The final deliverable is due in Q2.

• Development of a website with an online shop. FTF Inova continued to monitor the deliverables presented by the awardee, Alidata. During Q1, Alidata submitted 2 deliverables: a workplan and the creation of the global and specific overview of the application. FTF Inova expects that the website and online shopping system will go live in Q2.

• Truck rentals - solution to the last mile. FTF Inova awarded Adicional Moçambique (Adicional) with a blanket purchase agreement (BPA) to support CdA’s input distribution routes to the last mile within Manica, Nampula, and Tete. During Q1, 2 BPA release orders were issued and additional routes will be piloted in Zambézia, Gaza, Niassa, and Cabo Delgado. Service provision commenced on October 21, 2019, and the deliverables are expected to be completed in Q2.

• Supplying and implementing the customer relationship management (CRM) system. FTF Inova coordinated meetings with CdA on the CRM system implementation, and concluded that the system will be hosted through cloud-hosting. The procurement process and firm selection will be finalized in January 2020 and deliverables will be completed in Q3.

• Klein Karoo (K2), Deal Note 2. FTF Inova awarded a purchase order (PO) to Kuwona Consultores, an events management company, to run a series of marketing events to help K2’s products reach the last mile. The final deliverable, “the Step-by-step instruction guideline for organizing and conducting community events for promoting K2 products and services”, was submitted in December 2019.


• Condor Nuts (Condor), Deal Note 1. FTF Inova awarded a PO to FoodinTech, Lda to design an information and communications technology (ICT)-based traceability system. The activity will start in February 2020 and the deliverables will be completed in Q2.

• Ngala Investimentos (Ngala), pre-Deal Note 1. FTF Inova awarded a PO to Mundi Consulting, a marketing and consumer research firm, to assist Ngala and other FTF Inova partners in undertaking a needs-based customer segmentation analysis. The first deliverable, “the market assessment report, confirming user willingness to pay and service user acceptance”, was submitted in December 2019. The final deliverable will be completed in Q2.

• Data collection service platform. FTF Inova initiated a procurement process to support Monitoring, Evaluation, and Learning (MEL) strategies for data collection via market actors. The service will be completed in Q4.

2.1.3 Grants Under Contract

FTF Inova developed the concept note and completed the application stage for its first grant under a Deal Note. Negotiations will be finalized in Q2, at which point the grant package will be submitted to USAID for technical concurrence. FTF Inova will reflect on the process in its next quarterly portfolio review to assess the value of the grants facility.

2.1.4 Recruitment and Personnel

Table 1. Personnel Recruited in Q1

Type Title Purpose Status

Long-term

Technical Advisor

(LTTA)

Finance Assistant,

Maputo

Finance support. Commenced assignment on

January 6, 2020.

LTTA Partnership

Coordinator, Chimoio

Partnership administrative support to

portfolio managers.

Under recruitment.

LTTA Partnership

Coordinator, Nampula

Partnership administrative support to

portfolio managers.

Under recruitment.

Short-term

Technical Advisor

(STTA)

Dispute Resolution

Consultant

Provide a brief inventory of prevailing

disputes between farmers and off-takers and

analyze how they are handled.

Commenced assignment.

Assignment will conclude

on March 20, 2020.

STTA Media Marketing

Mentor

Mentor radio stations on understanding their

audience and assist in improving radio

program content and media services to

effectively reach agricultural companies.



on March 30, 2020.

STTA Agro-dealer Shop

Reconceptualization

Junior Consultant

Support CdA during beta testing of the shop

remodeling innovation.



on February 11, 2020.

STTA Senior Business

Development and

Marketing Specialist

Finalize CdA’s catalog concept, shop

rebranding, and route distribution system.



on April 30, 2020.

Intern (6) Intern Collect data for the viability and needs

assessment for mechanization services for

SHFs.


Assignment concluded on

December 20, 2019.

Intern (2) Intern Support agro-dealers through CdA using new

management models and marketing strategies.


Assignment concluded on

December 20, 2019.


Intern (9) Intern Collect data under the MEL team and Ferrara

University for the farmer behavior in

technology adoption study.



on January 29, 2020.

Intern (13) Intern Assist input supply managers in decision-

making, testing ideas, and research and data

collection to set up and strengthen the agent

network model.



on May 6, 2020.

2.2 Partnership Facility

2.2.1 Innovations

This quarter, FTF Inova implemented 2 changes to its partnership facility based on reflection during the annual portfolio review held at the end of fiscal year (FY) 2019. First, it developed a tool to structure a multi-party memorandum of understanding (MOU) that can bring together several market actors around a common set of activities. The MOU allows any number of partners to document their individual shared interests and make mutual commitments. It still allows for FTF Inova to sign (bilateral) Deal Notes within that broader MOU framework. The motivation for this change was twofold: first, the team recognized that one reason the Isolmoc-Bayer-Olam spray services pilot did not continue for a second year was that the partnership design phase did not clearly identify and distribute risks between the parties, leading to a contentious end of the pilot; and second, as FTF Inova reaches scale in its third and fourth full years of implementation, it knows it will need to facilitate broader coalitions of market actors, and that its predominantly bilateral partnership mechanisms were not suited for that aspect of going to scale.

The team also created new positions in Chimoio and Nampula for partnership coordinators - junior staff who will assist portfolio managers to complete and track the administrative aspects of partnership design and implementation, which will create internal incentives to better use the partnership tools on offer (even those requiring administrative effort) and permit portfolio managers to spend more time in the field and offering hands-on support to partners.

FTF Inova expects to publish the multilateral MOU tool and accompanying procedure changes and hire the two partnership coordinators early next quarter. Once it issues its first grant, it also plans to reflect on the process of developing a grant within a Deal Note and find ways to make the process more efficient.

2.2.2 Challenges

The partnership team struggled to advance to the next stage with its FY 2019 partner Isolmoc during the quarter, in part due to an original partnership design that did not address how all risks would be shared between the parties. On the positive side, it successfully negotiated a new bilateral partnership with Olam (focused on suppliers’ clubs) and is currently designing a direct partnership with Bayer to help expand their product reach.

FTF Inova did not hold any reflection sessions on closed Deal Notes in Q1, but it has 6 scheduled for the first weeks of Q2, during which it will discuss the challenges those partnerships faced and adaptations it can consider.


3 Technical Activities Technical activities are consolidated around three core systems: 1) Input Distribution Networks; 2) Supply Chain Management; and 3) Supporting Services, which consolidates business support services and interconnected systems. Support systems have been embedded across the input distribution and supply management sections based on which actors drive changes in the system.

3.1 Input Distribution Network System

3.1.1 Progress towards Vision

This quarter, we have registered significant progress and investments by input companies in intensifying collaboration and expanding outreach into rural areas. All of the input companies that FTF Inova has worked with in the past, and is currently working today, have made good use of the innovation piloted with the project to improve customer value and sales during the agricultural inputs buying season. Some early signs of market changes include input suppliers’ increased interest for coordination as well as investment in a customer-oriented business approach; these have led to increased adoption of seeds by SHFs and more sales, a sign that reinforces the need to further expand outreach and deliver value to farmers.

Albeit slow, there is some progress towards greater collaboration between market actors to increase volumes and reduce distribution costs among input suppliers or increase demand for inputs by final customers. The high costs of establishing distribution networks confronting input firms has triggered increased strategic thinking towards joint initiatives. For example, the Beira Agricultural Growth Corridor initiative (BAGC), an input partnership including Bayer, Yara, and K2 among other stakeholders, has invested in identifying opportunities and hindrances to developing connections between off-takers and input members. With FTF Inova’s support, BAGC is collaborating on joint marketing initiatives in Sofala and Manica to develop a commercially-viable system of hub agro-dealers and retailers to serve SHFs; promote bundled offers of high-quality fertilizers, seeds, and agrochemicals; and improve access to profitable crops as well as input financing. Centro Empresarial Provincial of Manica (CEP) has established a new coordination system of subgroups as a result of the input stakeholder dialogue facilitated with FTF Inova’s support. The new groups of input supply firms have regular interactions to address common issues and to collaborate on opportunities and constraints in the input market system. Luteari, an agro-dealer that has continued investing in customer-centric innovations after FTF Inova’s support, has begun leading coordination efforts among input firms through CEP. Further, through FTF Inova’s support, firms such as Pannar Seeds (Pannar) have established new commercial relationships with Miruku and Empresa de Comercialização Agrícola Ltda (ECA), a grain aggregator and maize processing company, that can help better serve its suppliers and the broader community with access to affordable inputs and extension services.

CdA is investing more and expanding the routes and retail points in Manica, Nampula, and Tete focusing on pre-order inputs delivery. 62 agrodealers and 11 agents are increasingly becoming more familiar and comfortable with pre-ordering inputs, helping to avoid excessive stocks and a mismatch in available stock versus customer needs.

13 agro-dealers have invested in customer-centric retail models (shop remodeling and village-based agent (VBA) networks) that are catalyzing increased business performance through superior customer service delivery. Notably, Luteari, who completed its VBA model pilot with FTF Inova, has continued to invest in VBA networks and to buy back their customers’ agriculture output for sale in wholesale markets. Currently, Luteari has 8 agents. K2 has supported the creation of employment and enterprise opportunities through a combination of micro-distribution jobs through 11 VBAs recruited by 3 agro-dealers as well 2 micro-retail stores, 1 owned by a woman. Cantina 2001 has invested in a customer-oriented shop layout translating into a better buying experience.


FTT Inova envisages the creation of increased opportunities through support service providers such as UBS, who are building initial relationships with 8 agro-dealers, 2 of whom are franchisees of João Agricultor, a distributor in Cuamba. UBS is increasingly seeing the opportunity to build out offerings to input firms. This will support the scaling and long-term sustainability of the customer-facing innovations.

3.1.2 Innovations and Activities

3.1.2.1 Pull distribution system The pull distribution system is a delivery infrastructure that connects manufacturers, distributors, and retailers to bring volumes of inputs all the way down to SHFs in a cost-effective and efficient way, thereby shifting the financial burden of stocking from retailers to wholesalers. Predictable and reliable delivery saves SHFs time in purchasing inputs, builds consumption habits, and leads to joint and/or replicated routes or VBA networks by other distributors. During Q1, FTF Inova learned that retailers and distributors alike have improved their understanding of the model and its constraints and opportunities – for example, CdA has been developing some ideas to increase volumes and make the truck distribution routes sustainable. These ideas include: 1) signing up contracts with fertilizer companies, since fertilizer is bulky; 2) including fast-moving consumer goods in their catalogue; and 3) pilot the use of cheaper transport vehicles, such as motorized tricycles. To increase volumes, CdA will also need to improve prices and provide a better service to farmers. As a result, CdA has decided to put more effort on coaching and developing its mid-management to the new business approach. FTF Inova is planning to support this effort by employing a Change Manager that can help the team transition. More demand activation is needed at the final customer level, more technical guidance is needed at retail points, and more communication on the pull distribution system innovation to other input suppliers and distributors is required. Going into Q2, FTF Inova will support partners with coaching and developing ideas on how to sustainably incorporate more technical guidance in the field. It will also tap into partners wanting to test pull distribution at a smaller level (regional agro-dealers), to accelerate learning and stimulate change at scale.

Partner-Driven Activities

• CdA. FTF Inova signed Deal Note 3 with CdA to support expanding its truck distribution routes into other provinces starting with Tete, Zambezia, and Cabo Delgado. Q1 data shows that across the routes, CdA recorded total sales of over 1.8 million meticais (MZN) and reached about 60 retail points and an estimated 6,000 final customers. However, the pull distribution system tested with CdA has yet to reach a break-even point as the volumes of inputs sold are still low. In Q2, FTF Inova will examine the analytics with CdA and set indicators to closely monitor and evaluate profitability. It will seek to understand which routes are profitable, why, and adapt as needed, and will investigate those that are not working and how to adjust them. At the same time, FTF Inova will also work with CdA on tactics to identify more retail points along the routes, and strategies to activate demand to ensure volumes and intensify distribution.

• K2. As of Q1, K2 has yet to engage with CdA to connect their network of agro-dealers with the truck distribution routes. While K2’s two high-performing agro-dealers in Manica and Barue are aware of the truck distribution routes and receive inputs through them, they also order seeds separately from K2, demonstrating a need for increased socialization of the function of the pull distribution system and the benefits across the chain for adopting it. As Deal Note 2 with K2 ended in Q1, FTF Inova is in the process of co-creating Deal Note 3, which will focus efforts on building the skills and capacities of K2’s agro-dealer agents and technical staff to move the VBA model forward. As a result of this shift, the activity will be reported under the “scale the retail footprint through alternative stores and agent models” innovation starting in Q2.

• Isolmoc. FTF Inova’s work with Isolmoc in FY 2020 focused on expanding the professional spraying service while diversifying to new market distribution and marketing channels in other value chains. However, despite noteworthy results from last season’s spraying service - over 2,000 farmers invested in the spray service, doubling or even tripling previous yields for those who applied the recommended


sprayings - there were complications in the credit recovery process that resulted in financial losses for Isolmoc. In addition to other difficulties during the last spraying season, such as climatic risks, mixed intercropping, and persistent side-selling, Isolmoc has decided to discontinue its provision of professional spraying services.

• BioChem. FTF Inova planned to work with BioChem to expand distribution and retail channels and build alliances with volume buyers such as off-takers, input manufacturers (seed multipliers), and spray service providers to build out the distribution network for organic inputs. FTF Inova reviewed BioChem's partnership application in Q1 and is working with them on adjustments to their proposed concept. Additionally, as they are still in the process of registering their biochemicals, FTF Inova will follow-up on the pilot in Q2.

• Sitole Commercial (Sitole). FTF Inova signed Deal Note 1 with Sitole in Q1. A baseline study indicated some resistance from the retailers Sitole works with on adopting a pre-order system of aggregated inputs, which is envisioned to enable frequent delivery of needed inputs. The recruitment for a junior technician, anticipated to start work in Q2, will support Sitole in managing the changes involved with integrating the new system, and FTF Inova has initiated support to Sitole on identifying a potential ICT solution to manage its network of agents, pre-orders, and customers. In Q2, FTF Inova will work with Sitole on tactics to gain buy-in from retailers on the model and plans to provide technical assistance to roll-out the pre-order system and ICT solution.

2.1.3.2 Scale the retail footprint through alternative stores and agent models

The pull distribution system supports a distribution business model that enables a more reliable supply of inputs to agro-dealers so that farmer customers have the inputs they need when they need them. The achievement of volumes in these distribution routes, however, strongly depends on the footprint that the distributor has. The higher the number of retail points, the closer the sales will be to farmers and the higher the capacity will be of distributors to capture latent demand and achieve the required volumes. Expanding retail points and driving SHFs’ adoption of improved inputs and services through VBA models and alternative stores continue to be crucial to the pull distribution system and to the establishment of a resilient inputs distribution network. Engaging alternative stores built on the availability of catalogs, which allows the recruitment of almost any agent, has been slow with input suppliers still unable to grasp the concept and hesitant to change their business model. On the other hand, the VBA model has shown signs of success in penetrating rural areas to reach the final customer, however, the full potential of VBAs in capturing latent demand has yet to be harnessed. VBAs need more technical knowledge, transportation and communication resources, and business and marketing skills to do more.

In Q2, FTF Inova will concentrate on providing support to CdA to set up alternative stores, as this is a promising, cost-effective means to expand the retail footprint in rural areas. FTF Inova will also identify sustainable ways to build the capacity of K2’s agro-dealers and agents.


• CdA. In Q1, work continued on a beta version of CdA’s print catalog, a cost-effective and flexible way for input firms to reach more SHF customers and support the pull distribution system through retaining products in CdA’s warehouse until an order is placed and paid for by a customer. The print catalog will be distributed in Q2 across Nampula and Manica to obtain feedback from retailers, adapted as needed, then distributed to various locations including traditional and non-traditional retail points with heavy foot-traffic along CdA’s truck distribution routes. Also in Q2, FTF Inova will recruit a retail marketing specialist to help CdA manage this new way of doing business.

• K2. FTF Inova is co-creating Deal Note 3 with K2, which will focus on strengthening K2’s agro-dealer networks and its VBA model. The agro-dealer networks and VBAs are crucial for disseminating information on products and services, taking pre-orders from farmers, and capitalizing on opportunities that increase demand like product promotion, raffles, and discounts among others. To continue building


the retail footprint, K2 will replicate its activities in Manica and Barue and expand into new districts such as Macate, Sussundenga, Vanduzi, and others. In Q2, K2 will build the capacity of its internal staff, particularly its technicians, to carry out these activities upon the signing of Deal Note 3.

• Agro-dealer networks. FTF Inova engaged with input providers in Q1 to create an internal system for selecting the best performing agro-dealers, but with no success. The system will require dedicated personnel to focus on its development, define performance indicators, communicate with agro-dealers, and conduct follow-ups to ensure changes are integrated. In Q2, FTF Inova will revisit strategies to better engage agro-dealer networks that prioritize growing the number of farmer customers, customer satisfaction, and loyalty over sales performance to improve distribution presence.

• Bayer. FTF Inova is in the final stages of supporting Bayer in creating a performance management scheme to manage its established distribution and retail channels. In developing agrodealers, the partnership will create a responsible and aware channel to take high-quality Bayer products to the last mile. Additionally, by promoting professional spraying services, the partnership will foster the growth of local input service firms, their ability to offer safer, gender-sensitive services to SHFs and emerging farmers in Northern and Central Mozambique, helping Bayer grow and create a competitive market environment. Bayer will select agro-dealers or retailers based on customer orientation, technical capacity, and sales to serve as preferred distribution outlets of their products, and will brand the outlet as providing consumer confidence in purchasing quality Bayer products and receiving quality service. In doing so, Bayer will develop its customer base for seeds, quality crop protection products, and for spraying services for small and large customers using Bayer solutions. The performance management scheme will launch in Q2.

• Oruwera. FTF Inova is in the early stages of negotiating support to Oruwera for building an effective consumer-oriented distribution and retail channel. FTF Inova and Oruwera discussed collaborating to strengthen and extend Oruwera’s seed distribution network to the last mile while developing a feedback mechanism with SHFs through which Oruwera can access recommendations on how to better serve its clients. In the same partnership, FTF Inova and Oruwera will work together to improve Oruwera’s brand design in order to better serve the expectations of their target market and deliver a more attractive product.

• Inovagro. In collaboration with Inovagro, FTF Inova organized a business meeting in November 2019 in Ribaue to introduce CdA to some of the commodity aggregation traders (CATs) supported by Inovagro. CATs represent a “reverse last mile logistics” solution whereby buying points are used also as input retail points; as such, CATs can be leveraged to expand CdA’s retail networks. CdA has started delivering to those who attended the meeting, which include 1 agro-dealer, 1 CAT, and 1 village savings group. In Q2, CdA will integrate more CATs and agro-dealers working with Inovagro into the truck distribution routes.

3.1.2.2 Customer-centric products and services Agro-input suppliers have an opportunity to capture latent demand by improving product offerings and the customer service experience, and through increasing farmers’ confidence that brands and their retailer are suited for their needs and priced fairly. Generally, FTF Inova has found in Q1 that this is an area that agribusinesses do not yet fully grasp. Providing customized services and products requires heavy market research, a keen understanding of farmers’ needs, and continuous feedback from farmers; FTF Inova has found that on these, both of its partners in this area – Agro-Imbeu and Parque de Máquinas (AIPM) and K2 - have struggled. FTF Inova will continue working with both partners to further understand how to more easily integrate the concept of customer-centric products and services into the business strategies of firms in the agriculture sector as a way to capture latent demand.


• AIPM. With the development of AIPM’s new packaging and branding strategy for maize seed varieties tailored to the SHF market segment under Deal Note 1, FTF Inova assisted AIPM this quarter in developing a prototype of its new brand and packaging. The prototype will be further adapted to differentiate it from other competitors; based on market research on target SHFs’ expectations, this means a seed package that includes information on planting the seeds, allows customers to see inside the package,


clearly identifies the variety type, and features a brand name that is related to local traditions and in the local language. Most seed distributors have yet to provide this type of customer-centric packaging, so FTF Inova expects to see increased sales as a result. Once adaptations are complete, the prototype will be released to the market in Q2 to test its reception with targeted customers in three districts (Angonia, Tsangano, Macanga, and Gorongoza). FTF Inova will work with AIPM to adapt the packaging based on the results of the release.

• K2. K2 has yet to utilize its CRM system as a tool to provide customer-centric products and services to its customers, and has again postponed steps to collecting, analyzing, and acting on customer data through the CRM to Q2. FTF Inova will remain open to supporting K2 in developing customer-centric products and services to its customers, however it will focus efforts with K2 primarily on activities related to scaling the retail footprint through alternative stores and agent models, which demonstrates the most potential to scale with the partner.

3.1.2.3 Bundling products and services Bundling of products and services into single offers with the correct combination of products and services needed for a specific crop or variety is a strategic retail practice that input firms can use to increase sales volumes, improve the affordability of inputs, and improve uptake by demonstrating value to farmer customers. Most of the work completed in Q1 in this component focused on developing the best ways to test this probe through a collaboration between Pannar, Yara, and Bayer. FTF Inova also met with BAGC to share experiences as they have a similar approach on bundling fertilizer, seed, and agro-chemicals and on developing a network of hub agro-dealers and retailers to market the offer and improve access to profitable markets for crops, and input financing. FTF Inova will provide support to Pannar, Yara, and Bayer to help move the pilot forward in Q2.

Although bundling of products and services seems more effective when it involves collaboration between input suppliers, it cans also happen via a distributor or retailer initiative. In Q2, FTF Inova will incentivize and provide support to distributors and retailers to include bundled services and products in their shops, and in the case of CdA, in their catalog.


• Isolmoc. Isolmoc has decided not to continue with the professional spraying service (see section 3.1.2.1 Pull distribution system).

• Ngala. With Ngala witnessing its highest credit recovery rates ever - 50 - 60 percent in Rapale and 70 percent in Nampula - it will expand the reach of its spraying services during the next agricultural season and adjust its current value proposition to farmers based on feedback from a customer satisfaction survey (see section 5.1.2 Participate in learning events). FTF Inova will sign Deal Note 2 with Ngala, under which it will test: 1) a cash-based payment mechanism, 2) a more customer-oriented professional spray service, and 3) a pull input distribution system.

• Cashew National Institute (INCAJU). As the regulator of the cashew sector promoting the use of pesticides through 1,500 spray operators and the distribution of seedlings to cashew producers, INCAJU represents an entry point to catalyze and spread innovations particularly in the area of input distribution. FTF Inova approved INCAJU’s application in Q1 to leverage its network of spray operators to pilot professional spray services and pull distribution through the bunding of products and services, and activities will commence in Q2.

• Pannar. FTF Inova signed Deal Note 1 with Pannar in Q1 to test whether customer value can come from a bundled service offering, which can in turn bring value to the Pannar brand. Pannar met with Yara and Bayer to pitch a collaboration on bundling services to farmers. Both companies are interested but are concerned about how transactions would work and who would bear the costs of any risks that may arise. The partnership will include identifying suitable retail points and building alliances with off takers; identifying qualified technical personnel to pinpoint suitable retailers and farmers for the pilot; and


developing an incentive plan and performance indicators for the best farmers. In Q2, Pannar will follow-up with Yara and Bayer, meet with potential off-takers to collaborate on the same, and gather intelligence on potential farmers with whom they could pilot the bundled services.

3.1.2.4 Human centered design to improve customer experiences at retail locations A more customer-centric concept for brick and mortar shops that improve customers’ experience – for example, customers feel “at home” and comfortable enough to converse with staff on products - can lead to better informed and welcomed customers, ultimately expanding retail sales and increasing brand loyalty. “Customer service” and the “customer experience” in Mozambique are still new concepts; customers are not used to being welcomed and serviced at shops, especially at input shops. It is important for input dealers to realize that the products they sell are more than simple tangible objects; they also should include embedded information and should lead farmers to success and growth. During Q1, the first pilot of the new shop concept was launched in Sussundenga to positive reviews, with customers frequently commenting on the beauty of the shop and stating that they would return. While the pilot has demonstrated that the shop remodel can effectively increase foot traffic, it is still too early to determine whether this increased foot traffic can ultimately translate into sales. The monitoring and evaluation (M&E) team will carefully track data to this end. In Q2, FTF Inova will share the innovation with other retailers and input suppliers, continue to adapt the concept based on learning, and explore the possibilities of replication.


• Cantina 2001. In Q1, Cantina 2001 implemented simple shop remodeling and merchandising tactics to increase foot traffic at stores as well as customer service and retention tactics to expand customers and sales coverage. Early feedback from the pilot aligned with expectations, with many customers stating they would return because of the positive experience. Of 260 customers, 150 purchased products. While the direct cost of the remodel was relatively high at 230,000 MZN, FTF Inova will determine the cost-effective components of a shop remodel that can be replicated with others, and will also adapt to rapidly test simple tactics that generate traffic and observe which tactics lead to sales.

• CdA. Although the actual design of the shop remodel has been completed, adaptations to the design continued in Q1 in order to capture the optimal combination of changes that can yield the best customer experience. The number of adaptations made to CdA’s initial remodel design demonstrates the need for skilled human resources equipped to more efficiently drive and manage such changes. In Q2, CdA aims to complete and test the shop remodel as well as recruit in-house technical expertise to help develop and support a long-term strategy.

• Bayer. Bayer is a possible scale agent that can promote and support shop layout improvements for and information dissemination to a number of agro-dealers across Mozambique. Although the company remains committed to making this investment, is partnership with FTF Inova has been slow to take-off during Q1. As negotiations are now complete, FTF Inova expects that the partnership will commence during Q2, when Bayer will focus on introducing a performance management scheme that will reward retail points with investments in upgrading shops and in coaching shopkeepers.

• ECA. FTF Inova identified a new potential partner in Q1 with whom to test the new shop concept innovation. FTF Inova is in discussions with ECA to test the innovation at 2 agro-dealer shops, managed by individual retailers, that ECA is interested in opening to be closer to the last mile. The new shop concept will complement ECA’s work in Catandica where they provide farmers with inputs and technical assistance, then buy the resulting production. FTF Inova is in the process of reviewing ECA’s partnership application, and expects to begin activities in Q2.


3.2 Supply Chain Management System


A range of partnerships across different sectors to improve supply chains and at various levels have come into effect since Q4 FY 2019, with initial steps taken in several cases. In this quarter, FTF Inova has been working with more than 1 firm per innovation area in the supply chain management system portfolio and with a variety of firms including processors, buyers, and retailers. Lead commercial firms with potential for scalable interventions and substantive outcomes, such as Olam, Novo Madal, Mohammed enterprises Tanzania Limited (MeTL), and Miruku, are further along with their investments in suppliers’ clubs and on enhancing farmers’ production capacity. While FTF Inova is beginning to see increased innovation in traditionally inflexible, concession-heavy sectors with market leaders, such as Olam, there is potential to deepen engagement to influence their agenda and leverage their resources to expand investments in suppliers’ clubs for all crops procured from SHFs. There is early evidence of small- and medium-sized enterprises (SMEs), such as members of AICAJU, wanting to create a foundation of growth for their suppliers based on transparency and trust. FTF Inova will train, engage, and support new commodity buyers through internships, embedded employees, and increased training and coaching. It will also raise the profile of firms investing in supplier performance management tactics through stakeholder forums and the media to reinforce tactics such that they become an industry norm.

FTF Inova has engaged three partners to generate brand recognition of and value in “grown in Mozambique” products as well as sales via a network of micro-retailers. Progress has been made in connecting Ka Da Terra (KDT), Adicional, and Mozambique Good Trade (MGT) to potential suppliers in Niassa and Zambezia. KDT has tested the demand for homegrown products with positive results, noting that urban consumers in Maputo are most interested in buying beans, rice, and tea from Mozambique. MGT is investing in a consumer market research assessment to enable it to target consumer groups by the price they are willing to pay for locally grown products. At the same time, Adicional is in the early stages of creating a new distribution business stream built on the truck distribution routes for the transport of locally grown fruits, vegetables, cereals, and oilseeds.

There are early signs of closer relationships between off-takers and varied actors outside the supply chain portfolio. For example, Olam and CdA are in discussions to establish an arrangement whereby CdA and its network of agro-dealers supplies the broader input and extension information needs of Olam’s suppliers outside cotton. Bayer is negotiating with MeTL to expand its distribution of maize seeds into areas where MeTL buys. Discussions to improve transport and logistics services by off-takers, such as Novos Horizontes in partnership with AppLoad, and for a low-cost solution at the bottom of the pyramid (BOP) among last mile actors, such as Inovagro’s CATs with Ecotri, are in the early stages.

Condor’s plan to invest in traceability and to link to premium export markets are on hold. Financial constraints have limited Condor’s ability to buy cashew from its contracted suppliers and the open market. Generally, for Mozambique companies to target higher-value overseas markets, cashew sales require meeting western markets’ needs for improved quality, quantity, reliability, traceability, and global certifications, so FTF Inova expects the certification initiative to resume soon.


3.2.2.1 Transparent performance management mechanism with supplier clubs Performance management systems are designed to cultivate and strengthen long-term relationships with SHFs, incentivize production – both in terms of volume and quality – and increase the certainty of return on investments. The supplier club model provides a management structure and incentive model that includes rewards that motivate suppliers to offer more quality products; higher, more predictable volumes; and timely sale. For FTF Inova, this is an innovation area with good traction, and despite some challenges observed on


behalf of partners in terms of long lead times in setting up performance management schemes and testing non-financial incentives, companies have and continue to show interest in investing in them.

In Q1, FTF Inova made progress in rolling out suppliers’ clubs with Miruku, and in initiating the first steps to do so with other partners including Novo Madal, MeTL, Olam, and AICAJU. With the number of suppliers’ clubs being rolled out, FTF Inova will closely examine the impact suppliers’ clubs have on building long-term relationships with SHFs and will begin to craft and amplify the business case for them and their effect on making supply chains in the Mozambique agriculture sector more inclusive and sustainable. FTF Inova will continue providing technical support in Q2 to its current partners on tactics of supply chain performance-based production schemes to drive farmers’ increased investment in production with a guaranteed market from the off-takers capable to offer better prices and other non-cash incentives and rewards.


• Miruku. During Q1, Miruku initiated testing of its performance management tactics, signing commercial contracts with 10 suppliers’ clubs (5 in Alto Molócuè, 5 in Monapo), totaling 236 farmers (27 percent female). In its agreement with the suppliers’ clubs, Miruku will facilitate access to inputs, mechanization services, and technical assistance, and will reward the best farmers with radios, tools, mechanization services, and a premium price based on the quantity and quality of products (for example, Miruku will pay a premium for quality of 100 MZN/kilogram (kg) up to 10 tons and 200 MZN/kg for more than 10 tons. In Q2, FTF Inova will sign Deal Note 2 under which a Supply Chain Relationship Manager will support Miruku in managing and expanding suppliers’ clubs. FTF Inova will also explore the opportunity to link Miruku’s suppliers’ clubs with input distributors and existing and new VBA networks to more easily market to end customers and drive demand, and using Miruku as a case study, FTF Inova will closely examine the impact that transparency has on the quality of relationships, disputes, and other variables affecting the establishment of long-term relationships with SHFs. Lastly, FTF Inova will also explore ways to leverage the Miruku pilot to crowd-in firms of a similar size.

• Novo Madal. FTF Inova continued its work with Novo Madal in Q3 under Deal Note 3 to facilitate Novo Madal’s adoption of a performance-based supply chain management system. Workshops were held with 88 farmers (62 female) from Bagoni (Zalala) and Inhangulue, and the parties agreed on the selection criteria and contract levels, the frequency of monitoring and training (monthly), and the need for human resources to operationalize the clubs. The farmers expressed concerns that Novo Madal would prohibit them from farming on Novo Madal-owned land once the suppliers’ clubs were established, but the firm explained that the in-grower program targets all farmers currently growing on Novo Madal land and that it will also involve food crops. Overall, the farmers expressed interest in participating in the initiative, and all parties agreed that further meetings would be required to reach more farmers. From this interaction, FTF Inova and Novo Madal recognized that the process of communicating with farmers is time-consuming and requires different communication channels and approaches in order to clearly relay messages. To this end, in Q2, FTF Inova and Novo Madal will identify modes for increased human resources to manage and steer Novo Madal’s performance suppliers’ clubs, and to design and implement an effective communication strategy. FTF Inova will also explore ways to leverage the pilot to crowd-in firms of a similar size.

• MeTL. During most of Q1, partnership negotiations with MeTL were stalled due to internal constraints at the firm. FTF Inova re-engaged the partner at the end of Q1, and MeTL is now in the process of submitting a partnership application to pilot suppliers’ performance clubs anchored on large scale famers. A Deal Note will be signed with MeTL in Q2, which will focus on supporting MeTL to build its capacity for change management through a Supplier Relationship Manager, engage farmer groups, identify field coordinators, conduct trainings, and develop communication and contracting tools. This will enable MeTL to pilot its suppliers’ clubs in the 2020/2021 agricultural season.

• Olam. FTF Inova moved forward with Olam in Q1 to establish suppliers’ performance clubs. FTF Inova will need to work with Olam further to help them better understand the concept behind suppliers’ clubs - that such clubs are established to create winners and to incentivize SHFs to perform better rather than a


means to filter out and exclude SHFs. To diversify and scale the pilot, FTF Inova began discussions with Olam on implementing suppliers’ performance clubs in their cashew and sesame sectors. The Deal Note is focused on promoting performance management schemes through suppliers’ clubs to drive increased production, productivity, and improved trust between Olam and farmers, and is not directly related to the distribution of agrochemicals. In spite of this, as a member of the Better Cotton Initiative, Olam will promote the usage of acceptable farming inputs (seed and pesticides) to farmers and their extension team will provide technical assistance to farmers by training them on good agricultural practices, the right application of pesticides, and agrochemical container disposal.

Also, in Q1, FTF Inova helped facilitate a linkage with CdA to allow the distribution of inputs to be independent from Olam’s direct involvement. In Q2, in addition to continuing to provide support to Olam as it pilots its first suppliers’ performance clubs, FTF Inova will work with Olam on an expansion strategy and will develop a communications strategy to improve Olam’s communications tools and skills with farmers.

• Cashew Yetu, Lda. FTF Inova completed the review of Cashew Yetu’s partnership application to set up performance management schemes as it gears up to engage a network of microprocessors to supply the Total Rovouma Oil and Gas project with approximately 100 kgs of cashew per month and 1,000 kgs of cashew kennel per month to South Africa. After reviewing the application, FTF Inova concluded not to move forward with Cashew Yetu on piloting performance management schemes as they would need to build their market for primary processing, which would put them in competition with better-placed firms. Because the value Cashew Yetu adds in the production chain is more at the packaging and retail level, FTF Inova is considering working with the firm on Hazard Analysis Critical Control Point (HACCP) certification to experiment how this can help them access the regional market and to help Cashew Yetu become more customer responsive and quality assertive (domestic market segmentation). FTF Inova will follow-up with the partner in Q2 on the opportunity.

• AICAJU. During Q1, AICAJU, the strategic partner of INCAJU, requested FTF Inova’s support with strategies to improve trust between cashew processors and cashew producers. FTF Inova has prepared an MOU with AICAJU to introduce them to and provide a simulation of performance suppliers’ clubs, which help to build trust and confidence between suppliers and processors as the innovation requires regular interactions and communication with suppliers and entails processors providing suppliers with performance-based incentives and rewards. Investing in incentives and focusing on non-financial rewards motivates farmers to invest in their efficiency at the production level. While processors receive better quality, quantity, and frequency of products, suppliers in turn receive incentives, rewards, and a better process and pathway to growth, thereby building trust, confidence, and loyalty. FTF Inova will sign Deal Notes with interested processors. The MOU with AICAJU will be signed in Q2.

3.2.2.2 Certification and quality standards for premium domestic and export markets Going into FY 2020, FTF Inova set out to support export-oriented trading companies to obtain certifications and quality branding needed to access higher value markets both locally and internationally. Certification will catalyze business expansion, leading to an increase in productivity and yields, and benefits for SHFs. While the focus in FY 2019 was on Condor, who sought British Retail Consortium (BRC) certification, activities with Condor have revealed that certification, especially at the international level, is a process that takes time and a high-level of expertise, which is limited in Mozambique. To continue testing the value of certification in Mozambique’s agriculture sector, FTF Inova plans to diversify its activity in this innovation area to test less intensive certification at the domestic level (such as HACCP) as well as signal branding. To do this, FTF Inova will rapidly investigate the existing opportunities and constraints to domestic-level certification, and will then move forward with pilots with current partners in the innovation area.


• Condor. Condor began implementing recommendations raised in Q4 FY 2019 based on the pre-audit to ensure that its quality management system meets BRC global food safety standard issue 8. FTF Inova will


continue to deepen its technical support in Q2 to Condor to improve the traceability system of raw cashew nut from its suppliers.

• Agrico Marketing. FTF Inova continued discussions with Agrico Marketing on adopting food safety quality standard certifications to expand access to premium end markets for pulses. While there has not been much movement on Agrico Marketing’s side, FTF Inova will follow-up to gauge their interest in moving forward in Q2. Additionally, FTF Inova will conduct a quick stock-taking assessment on the feasibility of domestic certification; based on the results and their interest, FTF Inova will continue to work with Agrico Marketing on testing the value of domestic certification in Mozambique.

• Carpe Diem. FTF Inova completed the review of Carpe Diem’s application for support obtaining certification to access markets in Europe, the United States, and South Africa. FTF Inova is following up with the firm to clarify what certification is sought, the level of FTF Inova’s involvement in the certification process, and how significant the firm’s products are in the markets being sought after. In Q2, FTF Inova will follow-up with Carpe Diem on the questions outlined and will conduct a quick stock-taking assessment on the feasibility and potential of domestic certification for the firm. Based on the results, FTF Inova will work with Carpe Diem on testing the value of domestic certification in Mozambique.

3.2.2.3 Targeted sourcing, branding, minimum quality standard in domestic markets Sourcing locally and branding Mozambican products will benefit low-income producers and consumers and increase market access for SHFs. In this innovation area, FTF Inova seeks to establish a business case whereby: 1) there is in fact a preference for locally-sourced products and that this demand provides enough value to establish sourcing from rural areas, 2) customers can easily recognize products, and 3) suppliers can provide customers with the product on a regular, predictable basis. Early signs from KDT tests have shown that there is a high demand among supermarket store customers for locally-sourced products, and initial tests with MGT and Adicional on developing the sourcing, branding, and marketing strategies that will enable retailers in urban centers to supply these premium products will help determine whether suppliers can supply the product on a regular, predictable basis. FTF Inova will continue testing the innovation with KDT, MGT, and Adicional in Q2, and will seek a partnership with Freshmark/Shoprite to further test whether sourcing locally and branding Mozambique-grown products will benefit low-income producers and consumers and increase market access for SHFs.


• MGT. MGT has agreed to move forward with the mapping assessment that will help them make informed decisions about profitable marketing strategies for locally grown products, including recommendations for targeting consumer groups with brand development, pricing to match consumers’ willingness to pay, and selecting sales channels that offer the opportunity to grow and expand. FTF Inova will follow-up with MGT in Q2 on providing technical assistance on volume and quality requirements to its suppliers.

• KDT. Based on the changing realities driving KDT’s business strategies, FTF Inova continued Deal Note negotiations with KDT in Q1. As a departure from the initial concept of testing a wholesale function of quality food crops targeting a large number of micro-retailers, KDT has pushed building a supply chain that brings cash products such as black coffee, tea, honey, ginger, and tapioca powder to export. As these crops offer low opportunities for SHFs, FTF Inova is currently working with KDT to re-engage it on expanding quality domestic retail and testing a wholesale scheme targeting smaller retailers in the local market, more inclusive strategies that can transform the supply chain system. The partnership is a strategic one as KDT can link with and benefit a number of sourcing SHFs and retail points in local markets in the South.

• Adicional. FTF Inova is finalizing Deal Note 1 with Adicional, which will explore the establishment of a “Weekend Farmers Market” in the cities, in the middle and upper-middle class neighborhoods, where they will bring farmers together to sell their produce monthly. Adicional will identify 10-20 farmers to participate in the pre-scheduled market events based on quality, capacity to deliver the required volumes or


produce, and willingness to participate in the market event. In Q2, FTF Inova will sign Deal Note 1, at which point the first “Weekend Farmers Market” will launch.

3.2.2.4 Strategic alliances between buyers, input suppliers and finance Strategic alliances between processors and a network of trusted partners that complement an off-taker’s business are a cost-effective option for growing and managing supply chains. SHFs who have an off-taker committed to investments in the supply chain will benefit by accessing products and services promoted through the network. A key theme emerging in Q1 was that almost all off-takers expressed a demand for traceability systems; there is a need to garner more information on where the products are to increase investment. As traceability systems are complicated and time-consuming to setup (as in the case of Condor), there is an opportunity to customize smaller, less sophisticated systems that better match specific traceability needs. While the ConnectCaju platform, which collects data on farmers and farms, can provide opportunities for suppliers to invest more in production, the platform is missing private sector involvement and requires further refinements.

In Q2, FTF Inova will continue to promote strategic alliances, and will further explore opportunities in suitable traceability systems that increase investment in the supply chain.


• Prodeca. The viability and needs assessment for mechanization services research was finalized in Q1. The report has been shared with Prodeca, and recommendations on a way forward have been provided. Prodeca will work with FTF Inova on a suitable marketing strategy to better offer their services to the target market.

• MeTL, input suppliers (e.g. Bayer), and ICT services (e.g. Green Fingers Mobile). Under the testing of suppliers’ performance clubs with MeTL, FTF Inova will promote linkages between MeTL, input suppliers, and business services to ensure timely access to specific quality seed specifications and efficient management of suppliers’ performance clubs. In Q1, Bayer engaged MeTL to collaborate on easing access to inputs for suppliers’ performance clubs through delivering support and quality inputs to MeTL’s farmers through a network of local agro-dealers in the selected production areas. These negotiations are ongoing and agreements between these two market actors are foreseen to take place in Q2. Green Fingers Mobile also maintains interest in providing MeTL support on ICT-based management systems. Both alliances will execute activities in Q2.

3.3 Supporting Services Systems


Supporting services – marketing, transport and logistics, media, academia, finance, and ICT – help the adoption and amplification of sustainable innovations. This quarter, FTF Inova has made significant progress in this area, in particular with co-creating innovations in marketing, and in helping Ecotri, the distributor of affordable motor tricycles to evaluate the agriculture market for opportunities.

Tangerine and Forcier, two leading Mozambican marketing companies, are expanding their services in the agricultural sector with a new set of agricultural-based firms based on the lessons they have drawn in working with input firms with FTF Inova. Tangerine is in the early stages of mapping input firm’s agro-dealers to target them with below the line marketing strategies that support input firms to be more customer-oriented and boost demand for inputs. Tangerine’s new offering is branded as Cultiva. In its role as a business service firm, Tangerine could serve as a scale agent to attract more investment in marketing agri-products for both input and output firms.

Green Fingers Mobile is innovating and marketing more platforms for use by input and commodity buyers. Green Fingers Mobile is working with Nando’s to develop a platform to support electronic payments and to manage its out-grower scheme of chili producers in Mozambique. Firms, such as K2 and Prodeca, that are


interested in promoting financial mechanisms such as prepayments or mobilizing domestic remittances for input purchases can use the same platform. Green Fingers Mobile is in early discussions with Olam for the development of a supply chain management platform to manage its out-grower scheme of cotton producers in Mozambique.

Although in the early stages, with FTF Inova’s support, Ecotri has developed and is promoting an offer to agro-dealers to make investments in tricycles on a layaway or payment plan. Ecotri is promoting the payment terms to agro-dealers that are interested in investing in low-cost transport solutions in rural areas. AppLoad has registered 100 transporters to its global positioning system (GPS)-enabled fleet tracking platform to better manage and coordinate transport and logistics orders across different transporters, and 3 companies including Novos Horizontes are confirmed to test the platform.

2 universities are building stronger links with small input firms and engaging interns that can provide mutually beneficial work and learning experiences. UBS has partnered with 8 agro-dealers to roll-out student internships to set-up VBA networks that increase farmers’ access to inputs and information usage. Instituto Superior Politécnico de Manica (ISPM) is in the early stages of expanding its internship program to roll-out the VBA model.

In Q2, the supporting services systems portfolio will focus on supporting service firms with proving their concepts and reinforcing and marketing scalable solutions proven to deliver customer value in support of agricultural growth in Mozambique. This will be done through engagements with media and other platforms (e.g., stakeholder forums).


3.3.2.1 Marketing firms develop and provide services for agribusinesses FTF Inova’s work in the marketing space centers around the notion that expanding the engagement of marketing firms into the agriculture sector facilitates access to marketing services for agribusinesses so that they can successfully expand their business and serve SHFs better. In Q1, FTF Inova continued testing this idea with its partners, Tangerine and Forcier, who have developed a much better understanding of the potential of the market. For example, after its exposure to agriculture sector actors through its contracted work with FTF Inova, Tangerine, itself, saw an opportunity to develop its Cultiva platform, which will help input distributors better manage their agro-dealer networks and manage stock through real-time data capturing. Similarly, Forcier identified an opportunity to conduct market research for agri-firms interested in investing in brand loyalty. Both Tangerine and Forcier remain committed to providing services to the agriculture sector to close this gap and will launch their tailored services in Q2.


• Tangerine. Tangerine is committed to developing a strategic relationship with selected input retailers who see a future in having a longer-term relationship with SHFs. FTF Inova will support Tangerine in its role as a scale agent through its Cultiva platform that maps and profiles input retailers by their size and sophistication to target them with market service offers around customer-centric approaches such as customer service, stock management, real-time data capturing, and merchandising. In Q1, FTF Inova initiated a grant process with Tangerine; the grant will be awarded in Q2, at which point Tangerine will pilot the Cultiva platform.

• Forcier. Due to the firm’s internal restructuring, FTF Inova is currently re-assessing Forcier’s capacity to expand its services to the agricultural sector. The project initially negotiated supporting Forcier to complete market research to identify the marketing needs of agribusinesses.

3.3.2.2 Transportation and logistics agriculture support services The transport and logistics market system is highly fragmented with limited match-making services or agents that can match loads to truck capacity. With increased transport efficiency, companies can reduce costs and enable more cost-effective transportation and logistics services for distribution to the last mile and for


streamlining the flow of production from farm gate to aggregation centers and from these to large urban centers while supporting producers to become increasingly competitive in the market.

Q1 highlighted a number of opportunities for increased transport efficiency and profitability. At the macro level, a scoping mission to Ribaue and Nampula City with Adicional indicated that a transport and logistics solution for agricultural products on the same routes CdA is distributing inputs can significantly lower the cost of transport by taking advantage of backloading opportunities. At the micro level, facilitating agro-dealers’ access to affordable, available, and right-sized transport solutions, such as motor tricycles with Ecotri, can improve the distribution of inputs from and to the farm. AppLoad is investing at both the macro and micro level; it will pilot a solution to the challenge of limited match-making services - an ICT platform that links clients and transporters – and is in the early stages of conceptualizing a low-cost solution for doing the same at the micro level. FTF Inova’s transport and logistics service provider partners reaffirmed their openness and commitment to collaborating with each other as well as with both input and output companies to pilot these transport and logistics solutions and explore other ideas in Q2.


• AppLoad. AppLoad is in the process of launching its GPS-enabled fleet tracking and call centers to better manage and coordinate orders across different transport networks, primarily formalized companies such as input distributors and output buyers. Ahead of its launch, potential clients have already expressed enthusiasm around the platform. While the solution directly addressing the issue of limited match-making services, it faces the challenge of sustainability. FTF Inova will work with AppLoad in Q2 to analyze areas for increased profitability for all actors involved. Also in Q1, AppLoad started conversations with Ecotri (see below) to provide a low-cost solution for managing transportation and logistics at the BOP and among last mile market actors.

• Adicional. Adicional has identified opportunities for backloading and cold storage to optimize the routes developed by CdA for input distribution by partnering with aggregators, agro-dealers, commodity buyers, and commercial farmers located along the routes. Currently, FTF Inova is supporting Adicional in connecting with fruits and vegetable producers and agro-dealers as vegetables and fruits aggregators. For the opportunity to be viable, it will require linking farmers with supermarkets, regularly scheduled farmers’ days, or street vendors, or linking farmers and aggregators to small local distributors based in Nampula at Mercado da Waresta, the main distribution center in the northern region for fruits and vegetables. To test the idea, FTF Inova is finalizing a Deal Note with a SPAR distributor and is developing contacts with Freshmark/Shoprite. Additionally, a market assessment on the input distribution routes will be completed in Q2.

• Ecotri. FTF Inova is developing a profitability model together with Ecotri in an effort to expand their sales of motor tricylcles to agro-dealers. The solution will increase the provision of affordable, right-sized vehicles to improve the distribution of inputs to the last mile as well as increase the uptake of products from farm gate to aggregation centers to markets. As FTF Inova will focus its work with Ecotri on solving logistics challenges, the activity has been moved from the “applying financial service solutions through agribusiness partners” component to the “transportation and logistics agriculture support services” component.

3.3.2.3 Information, technical support, and feedback via radio programming Media can fulfill the need across the market system for wide-reaching platforms that offer consumer protection, the effective dissemination of information, and ultimately benefit SHFs and agribusinesses. While Radio SIRT has been successful in signing various deals with private sector sponsors, Q1 discussions to move the media innovation forward with Radio Monapo revealed that community radios are slow to transform their practices from chasing pay-to-play opportunities to designing and implementing entrepreneurial tactics that are more sustainable in the long-term.


As a result of this finding, FTF Inova will adapt its approach to strengthening media as a service to the agriculture sector. Rather than working to institutionally develop community radios, FTF Inova will leverage them as a vehicle for communication and amplification. To this end, FTF Inova will facilitate linkages between radios and its partners to disseminate strategic messages, share information, and serve as conduits to voice concerns and gather feedback from both SHFs and agribusinesses. At the same time, by exposing radios to business opportunities with the private sector, they can more easily learn first-hand how to manage a business relationship and will gain experience tailoring their services to the agricultural sector. Partner-Driven Activities

• Community Radios (Radio Manapo and Radio SIRT). FTF Inova worked together with Radio Monapo on a work plan to market radio programs and services to agriculture sponsors. During this process, FTF Inova found that community radios did not demonstrate the initiative to innovate or design ideas that advance the business side of the radio. Taking a step back from conducting agricultural fairs, brand awareness campaigns, and customer feedback radio programs, both radios will focus on providing a communication service to FTF Inova’s partners as an opportunity to further develop their business capacity. To this end, FTF Inova will provide marketing mentorship and training to both radios. FTF Inova is developing a communications strategy for its partners and will identify business opportunities within its portfolio for the dissemination of information on which community radios can capitalize.

• Centro de Apoio a Informacao e Comunicacao Comunitária (CAICC). FTF Inova continues to collect lessons learned from its work with radios in Q1. In Q2, FTF Inova will share the best practices with community media forums such as CAICC, which has a membership of 114 community radios.

3.3.2.4 Junior consulting services to benefit private sector and students Going into Q1, leveraging higher education institutions (HEIs) through developing low-cost market-driven services to the agriculture sector was an important opportunity for FTF Inova, in terms of reaching scale and amplifying the behavior of well-performing firms. To that end, FTF Inova continued building HEIs’ capacities in Q1 to test whether they can sustainably tap into opportunities to provide customer- and growth-oriented services to rural agribusinesses. By instituting practical curriculums and using internship placements to demonstrate that the expertise of lecturers and students can be harnessed to provide better value to agribusinesses’ customers/suppliers (SHFs), agribusinesses may be willing to pay for such services through consultancy arrangements. While a Q1 market assessment conducted by UBS confirmed that there is a high demand for junior consulting services, there is hesitation to pay for such services. Large distributors signaled a willingness to pay, but micro-retailers expressed only the possibility of cost-sharing. This sustainability-related learning led FTF Inova to adapt by expanding the tactics towards strengthening the linkage between academia and the agriculture sector. Thus, while UBS will continue to test the market appetite for junior consultancy services, UCM will test whether regular interactions – other than internship placements - with agribusinesses can lead to internship sponsorships and curriculum changes focused on integrating relevant skills for the agriculture sector job market.


• UBS. UBS moved forward with piloting its commercial micro-consulting service by signing MOUs with 6 agro-dealers in Ribáuè and Malema and 1 distributor (João Agricultor) in Cuamba to host a total of 12 interns (7 female). These interns have already begun demonstrating evidence of better in-shop management practices (integration of customer-centricity, improved inventory and accounting tools, introduction of the use of databases for marketing) and promotional innovations (outdoor sales stands). 4 additional interns (2 female) were placed to assist 2 franchisees of João Agricultor on introducing the VBA model in 4 communities of Cuamba as well as 2 agro-dealers in Ribáuè and Malema. 1 agro-dealer will explore buyers’ clubs. Work with the agro-dealers will commence in Q2.


Also in Q1, UBS began assessing market capacity to pay for junior consulting services and to gain information on how to price such services. So far, the assessment has shown that while there is a high demand for the services, agro-dealers face constraints to fully-fund those services.

The focus in Q2 will be to build the capacity of UBS supervisors to shadow interns in data analysis around the tactics being tested to inform business decision-making and showcase the value of the innovations implemented.

• ISPM. FTF Inova planned to support ISPM with expanding its internship program to attach more interns to input retailers for the roll-out of the VBA network model. This will materialize on a demand-basis; no input retailers have piloted the model in Q1. ISPM invited FTF Inova to attend a stakeholder event they organized to collect feedback to inform its next organizational strategic plan. Recommendations provided by the private sector through the event are consistent with FTF Inova’s pitch to ISPM: maintain a regular feedback process and improve the curriculum to match agriculture market needs.

• UCM. Based on feedback from agri-businesses, UCM learned that the private sector values recurring engagement with HEIs to ensure a qualified labor force with transferrable skills, to obtain evidence supporting the success of internships, and to gain regular access to academic research. As these value propositions coax firms into considering sponsoring HEI services, in response, UCM worked with FTF Inova to develop a platform (innovation club) that promotes regular interaction with the private sector as well as career development. Thus, in Q1, FTF Inova began co-creating a Deal Note with UCM focused on the platform’s development. Specifically, the platform will not only encourage regular engagement with the private sector through which UCM can make its curriculum more relevant to the agribusiness job market, but it will also create a space for: 1) companies to give practical trainings and presentations to induct students to job applications and the workplace; 2) interactions between students across disciplines for horizontal learning; 3) intern orientations by professionals in the agricultural sector and relevant support services (ICT companies, financial institutions, marketing companies, and employment service providers); 4) dissemination of relevant research findings; and 5) job fairs. FTF Inova will also support UCM in building lecturers’ capacities to negotiate with the private sector and in developing support packages (including practical training tools) for students to take advantage of opportunities in the private sector and on curriculum development. The platform will launch in Q2, and FTF Inova will monitor the pilot to gain insights on whether regular engagement with the private sector is, in fact, an effective way for HEIs to channel the private sector’s feedback into crafting a more practical curriculum relevant to the job market.

3.3.2.5 Applying financial service solutions through agribusiness partners With a lack of suitable and affordable financial products and services for the agricultural sector on the market, expanding such products and services to more rural areas will help contribute to increased productivity in the market system and the creation of a more attractive, larger customer base for financiers. Financial institutions are slowly beginning to realize the potential for business at the BOP, particularly among those market actors who are officially linked to formal markets or supply chains. Through value chain financing, Absa’s Enterprise and Supplier Development (ESD) program is increasing the ability of SHFs to purchase inputs through in-kind lending; Prodeca is involved in providing inputs and mechanization services to farmers and plans to improve access to finance to enable SHFs to invest in their goods and services; and Hollard is piloting weather index insurance (WII) products that manage risks faced by SHFs.


• Prodeca. FTF Inova supported Prodeca in Q1 to test an innovation to mobilize domestic remittances from urban family members to their rural families in its districts of operation. A consultant is finalizing a report on a marketing strategy to tap into the urban family segment that currently sends money to their rural family members for input purchases. While the report will be finalized in Q2, preliminary results have shown that there is low potential for success for a remittance solution in Prodeca’s target market areas. In terms of providing inputs and mechanization services to farmers, FTF Inova completed the mechanization viability and needs assessment in Q1, which resulted in several recommendations to Prodeca, including: 1)


focus on high-value crops for mechanization, 2) charge services based on the actual area a farmer has, 3) fully equip their mechanization sets; 4) make available mechanization service needs in target areas if the previous recommendations can be met; and 5) provide services for post-harvest mechanization in the target market. In Q2, FTF Inova will work with Prodeca to implement recommendations and will consider alternate financial service solutions the partner can test.

• Absa Bank Mozambique. FTF Inova is forging ahead with facilitating linkages between Absa and FTF Inova partners to increase Absa’s understanding of the agriculture sector to expand their delivery of more suitable products and services into rural areas. Absa is slated to send a representative to the finance stakeholder dialogue to explain how to apply to their ESD program. Additionally, Absa requested business information from FTF Inova partners to complete market research to segment the market and target the highest potential client segments with financial and non-financial services. FTF Inova is following-up with partners to ensure the information is provided.

• Hollard. As Hollard is already working with another USAID program on WII, FTF Inova will engage in WII opportunities with Hollard where it can add value and as they arise, such as the market viability of its products (the report of which was completed in Q1) or assisting interested SMEs to update and develop their client databases and georeferencing, an important tool in using WII often identified as the biggest challenge limiting SMEs investment in WII. In Q2, FTF Inova will continue discussions with Hollard to identify possible interventions to reduce the risk of applying WII.

3.3.2.6 ICT-Enabled inventory and digital payment solutions for agribusinesses Although agribusinesses recognize the value that ICT adds to their business in terms of improving the efficiency of their operations and management, there are several barriers to adopt these solutions. Focusing on suitable and tailored ICT services for the agribusiness sector will allow for better inventory and customer management practices and uptake of such services that in turn facilitate better services to SHFs as customers. During the period, several conversations around testing tailored ICT solutions have progressed, however, full adoption is still limited because most solutions are not yet fully customized for agribusinesses. For example, in the case of Green Fingers Mobile, the costs of their proposed ICT solution is still too high, and in the case of K2, UBS’s proposed solutions do not match K2’s internal capacity or their company culture and available resources. FTF Inova will continue to monitor tests with partners to assess internal conditions against ICT solution requirements, provide technical guidance and learning to encourage the adaptation of solutions, and identify opportunities to facilitate linkages with ICT firms that are able to offer truly customized solutions that better match the needs and profiles of businesses in the agriculture sector.


• Green Fingers Mobile. In an effort to expand their services, Green Fingers Mobile negotiated with Nandos, a restaurant chain specializing in Portuguese food, to offer an ICT solution that will better manage Nandos’ outgrower scheme for chili. Green Fingers Mobile also attempted to connect with other agribusinesses, including Novo Madal and Prodeca. In the case of the former, although conversations to develop a solution that allows farmers to weigh crops in a transparent way and links to a mobile e-payment system continued in Q1, an agreement failed to materialize because of the high cost of the solution. In the case of the latter, Prodeca identified the need for an inventory and payment technology in Q4 FY 2019 to allow urban family and friends to remit finance for agricultural inputs directly, an opportunity that Green Fingers Mobile could leverage. However, preliminary results from the financial remittance report commissioned by FTF Inova in Q1 showed that there is minimal potential for the success of a remittance solution in Prodeca’s target market areas. Despite these setbacks, Green Fingers is still open to opportunities as they arise. In Q2, Green Fingers Mobile will focus on advancing its opportunity with Nandos.

• Vodacom. FTF Inova facilitated discussions between M-Pesa and agribusinesses, such as CdA, to be a master agent that in turn registers and manages several M-Pesa retail agent outlets. In Q2, FTF Inova will


work with Vodacom to test the use of M-Pesa payment services for out-grower schemes, engage more input firms, networks of retailers, and agro-dealers as M-Pesa agents to improve and ease the perceived risks and hassles of buying.


4 Monitoring, Evaluation, and Learning

4.1 Progress on Performance Indicators FTF Inova expects to meet all targets set for FY 2020. Progress on key performance indicators in Q1 FY 2020 is summarized in Table 2.


Table 2: FTF Inova Progress on Performance Indicators

Number Indicator Achieved Q1 of FY 2020

FY 2020 Overall Target (revised)

Percentage Advance towards overall FY

2020 targets

Variance from 25% of FY 2020 target

Deviation Narrative of +/-10%

GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources

30%

121 females/519 participants

35% -14% +333% On track. FTF Inova expects to reach the target in the next 3 quarters.

YOUTH-3 Percentage of participants in USG-assisted programs designed to increase access to productive economic resources who are youth (15-29) [IM-level]

27%

140 youth/519 participants

22% 23% +450% Achieved. The target was achieved this quarter through FTF Inova’s work supporting youth through promoting their activities, allowing opportunities for youth across the entire value chain, and providing a pathway for the growth of youth businesses under Miruku and Olam’s suppliers’ clubs. As part of their participation in supplier clubs, youth are also provided with inputs, extension services, and assistance with mechanization and harvesting as well as a guaranteed market. FTF Inova also supports youth through internship programs with UBS, UCM, and ISPM, which give young business and agronomy graduates the opportunity to gain relevant skills and experience in the private sector that lead to potential permanent job placements and/or starting their own businesses. Through placement with firms such as Olam and Miruku, interns develop skills such as data collection, research, customer relationship management, provision of extension services, sanitary and phytosanitary standards and compliance, as well as general business management skills. Additionally, stakeholder dialogues provide the opportunity for youth to receive regular private sector feedback on the skills and capacities

demanded in the market.

EG.3.1-14 Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition [IM-level]

US$ 0 US$ 1,492,612 -100% -100% On track. This quarter, FTF Inova focused on formalizing 5 partnerships including Sitole, Olam, Adicional, UBS, and Tangerine, which will result in new commitments starting in Q2.

EG.3-2 Number of individuals participating in USG food security programs.

11,169 21,026 -47% +212% On track. Outreach on FTF Inova partnerships started well in FY 2020, primarily because of Cantina 200, the expansion of last mile input distribution innovations with CdA and K2, the


logistics platform innovation with AppLoad, and the establishment of suppliers’ clubs with Miruku and Olam. FTF Inova is close to achieving 50 percent of the target in just 1 quarter.

EG.3.2-24 Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance

9,127 16,136 -43% +226% On track. Resulting from the abovementioned interventions, FTF Inova has achieved 65 percent of the target and expects this progress to continue with the establishment of Olam’s suppliers’ clubs and more firms registering on AppLoad’s transportation and logistics platform in the coming months. So far, AppLoad has been able to register 10 firms and expects to register 4 more in Q2. 100 trucks are currently registered and 10 trips have taken place.

EG.3.2-25 Number of hectares of land under improved technologies or management practices with USG assistance

9,607 22,823 -58% +168% On track. As of Q1, FTF Inova is almost half-way to reaching the target.

EG.3.2-26 Value of annual sales of farms and firms receiving USG assistance [IM-level] -Value

US$ 2,236,069 US$ 29,267,590 -92% -31% On track. While the target is on track, it is somewhat surprising compared to the past season. Condor has not purchased raw cashew nut yet and the buying season is over. In conversations with Condor’s management, FTF Inova learned that Condor is adopting a different strategy this year. As they have stock from the past season, their decision to purchase will be based on their need. FTF Inova expects to observe purchases and sales from off-takers later in the year.

EG.3.2-27 Value of agriculture-related financing accessed as a result of USG assistance [IM-level]

US$ 0 US$ 265,573 -100% -100% On track. Although no agriculture-related finance has been reported this quarter, we expect that the partners will access finance during the year. For instance, Miruku and AppLoad are likely to access finance from Absa.

Custom Indicator #3

Number of farmers who have a new/improved commercial relationship with partner firms

5,374 10,488 -49% +205% On track. This target will be exceeded as new relationships between farmers and firms are formed.

Custom Indicator #4

Number of FTF Inova partner firms who have new/ improved commercial relationships with other firms

15 27 -44% +214% On track. A number of new/improved relationships between FTF Inova partners and other firms are expected to materialize this year. For instance, there is a potential collaboration between Ecotri and AppLoad on transport and logistics solutions, and UBS and agro-dealers under the student consultancy services.


4.2 Behavior Changes in the Market System When FTF Inova began, its market system baseline assessed the level of cooperation in the agricultural system between various providers and consumers of goods and services as quite low (1 on a scale of 0 to 3). Cooperation has 2 dimensions that FTF Inova finds particularly useful to track and assess. First is the belief that there is a value and importance to the relationship that makes it meaningful to maintain. This is evident when market actors make efforts, or expect one another to, to maintain an ongoing relationship that extends beyond a short-term opportunity or need. At the start of the quarter, the team stressed the challenges that producers have traditionally faced with uncertainty on who will buy, what commodities, when, and at what volume and price from them during a season. FTF Inova’s expectation was that through suppliers’ clubs established by Miruku, Novo Madal, and Olam, which kicked off in Q1, that not only would a valuable relationship be established between suppliers and the buyers, but also that it would prove mutually beneficial—which is the second dimension of cooperation we track and assess. FTF Inova considers that cooperation occurs when there is understanding that it can lead to mutually beneficial outcomes that exceed the outcomes that could be achieved individually. With suppliers’ clubs, FTF Inova expects cooperation to be seen in long-term supplier orientation from the buyers, and brand loyalty from the suppliers’ end, including reduced side-selling. During Q1, FTF Inova noted a shift in the willingness of buyers to offer additional non-financial incentives—like technical assistance, clothing, and bicycles—to demonstrate their commitment to an ongoing relationship with farmers. The value that off-taker buyers anticipate from this investment is higher quantities of quality production; Miruku is interested in maize and soy, Olam is interested in cotton, and Novo Madal in guar and ricin. From the producer perspective, FTF Inova has started initial interviews and found that, while producers are not convinced that the clubs which are just kicking-off will change much in terms of how or what they produce per se, they do notice and appreciate the efforts of the buyers to convey expectations in terms of quality and quantity this year upfront, and the efforts that are being made to travel to meet with them throughout the season. In Q2, FTF Inova will continue to harvest and assess the outcomes from the suppliers’ clubs.


5 Collaboration, Learning, and Adapting

(CLA)

5.1 CLA Activities

5.1.1 Analyze, capture, and disseminate information and lessons

As partnerships generate data, information, and learning, FTF Inova has analyzed and developed collateral to inform stakeholders of evolving market changes and potential opportunities. See section 6 Communications for details.

5.1.2 Participate in learning events

In Q1, FTF Inova engaged in various learning events to share and receive intervention-specific and industry knowledge, obtain supplemental information to advise on adaptations, and constantly evaluate interventions and partnerships. Key learning events are presented below.

• Baseline Study, Ngala Investimentos. A baseline study was carried out in December 2019 on cashew nut producers who received spraying services from Ngala. The purpose of the study was to understand producers’ level of satisfaction with and their level of adherence to the spraying services to inform next steps with Ngala’s spray services. 34 of the 400 producers who received spraying services were interviewed. Results showed that a large portion of producers did not receive the complete service (i.e., all 3 recommended treatments) and cashew trees did not produce as expected, leading to producers not paying for all of Ngala’s services. The producers also expressed dissatisfaction with Ngala’s approach to collecting credit, which producers described as involving an invasion of privacy. Overall, the study showed that Ngala faced many challenges in gaining the trust of its customers and in recovering credit.

• Customer Satisfaction Survey, Isolmoc. To analyze the impact of Isolmoc’s professional spraying services and understand why the initiative was discontinued, FTF Inova conducted a customer satisfaction survey in December 2019 of cotton producers in the districts of Lalaua and Ribaue who received Isolmoc’s professional spraying services. The survey showed that while producers were satisfied with the spray service because it directly protected them from potential chemical hazards and prevented chemical contamination, they were dissatisfied that the level of productivity was low (although this was due to factors such as irregular rains and not completing the recommended treatments) and at the high cost of the chemicals.

• Suppliers’ club model trainings, Miruku. FTF Inova held training sessions in October and November 2019 on the suppliers’ club model approach, with the objective of forming clubs for Miruku of the best suppliers of corn and soy. 236 producers (64 women) participated in the trainings held across the districts of Alto Molocue and Monapo. The sessions explained the criteria for selecting producers, the type of incentives for suppliers’ club members, the prizes for the best producers, and the various levels that each club can belong to according to its performance. Following the sessions, 10 maize and soybean suppliers clubs were created, totaling 227 producers (56 women). Miruku has signed contracts with each of the clubs to ensure a supply of maize and soy that meets recommended quality standards.

• Suppliers’ club model trainings, Olam. FTF Inova held training sessions with 77 producer groups committed to forming cotton suppliers’ clubs for Olam. Held in Ribaue, the training sessions aimed to disseminate information about best producer clubs, which consist of bringing producers together across 3 levels of production and productivity and assigning incentives and prizes in order to increase cotton production and productivity. Following the sessions, 3,000 producers expressed interest in joining the best producer clubs. In addition to sharing information on best producer clubs, the training sessions also


shared Olam’s communication strategy with its producers, which consists of transparency, signing visual contracts with producers, and monthly meetings with producers to monitor the evolution of cotton production.

5.1.3 Collaboration with development partners and projects

FTF Inova has collaborated and built synergies with other donor-funded projects, including DAI projects and FTF projects, through periodic meetings and other communications. This collaboration has created a knowledge base of lessons learned among projects, as well as identified potential opportunities for partnerships in the agricultural market. Key collaborations are presented below.

• Inovagro. FTF Inova collaborated with Inovagro in Q1 to identify agro-dealers to integrate in partnership pilots.

• Mecanismo e Serviços de Monitoria e Avaliação de Moçambique (MEMMS). FTF Inova received a request from MEMMS on a youth evaluation study, which FTF Inova directed to its partner UBS and other development projects like Moztrabalha (ILO) and a local youth-focused non-governmental organization called ADE.

5.2 FTF Inova Research Activities In Q1, FTF Inova commenced various research studies, summarized below.

5.2.1 Assessing the viability and demand for mechanization services

This research assesses the operational capacity and economic viability of Prodeca’s mechanization services and the key determinants of mechanization service adoption. The research was carried out in Prodeca’s zones of influence in the districts of Chibabava, Sussundenga, and Buzi. A total of 312 farming households were interviewed across 10 communities. The main results are as follows:

• Agriculture is the main source of income for 87.5 percent of households.

• Only one operator apart from Prodeca is operating in the area and is based in Mangunde.

• Mechanization activities are divided into 3 fundamental groups, namely land preparation (hired tractor power (HTP) and draft animal traction (DAP), and among HTP users, on-farm income mainly from pulses, sesame, and groundnuts (62.5 percent).

• Only 32.1 percent of the sampled SHFs knew Prodeca across the sampled communities.

• Services payment is an issue and split payments were presented as an option by 25.4 percent of SHFs. Farmers understand that they will need to generate income to pay for the service.

• On access to mechanization related to gender: 36.3 percent of the main plots were under female-led management, but married women had little power over the resources generated in those plots. Male-managed plots had lower mechanization levels compared to their women-led counterparts. Women-led plots used mainly DAP, and the majority of male- and jointly-managed plots used HTP.

• Prodeca only has fully operational land preparation to sowing sets consisting of 1 tractor, 1 disk plough, 1 disk arrow, and 1 sowing implement. As a result, Prodeca only completed about 74 hectares (ha) per tractor unit (TU) during the 2017-2018 season, which is below the recommended 150-180 ha/TU. Immediate investments should be made to equip Prodeca with 3 fully equipped and independent land preparation to sowing sets that can be allocated to independent workstations.

5.2.2 Farmers behavior in technology adoption

FTF Inova is collaborating with the University of Ferrara on research funded by the European Union. The study focuses on the attitude of Mozambican farmers to adopt hybrid seeds and/or open pollination varieties (OPV) to identify and define the concept of social norms in the Mozambican context, and to understand


whether the adoption/non-adoption of new technologies can be explained by the willingness to conform to this stereotype. 300 farmers were interviewed in 6 districts of Manica and Nampula.

5.2.3 Customer Satisfaction Survey and Market Assessment

Ngala, in collaboration with FTF Inova, conducted a customer satisfaction survey and a rapid market assessment with the main objective to collect information and data to support the development of a loyalty program for professional spray services provided by the company to retain and attract the best-performing cashew producers and spray operators, as well to stimulate demand and supply of professional spray services where transactions are based on cash payments in order to increase the cash flow into the agricultural market system (e.g. promote cash-based vs credit or in-kind payments). Under this research, 34 farmers were interviewed about their current experience with spraying services, namely access, modalities of payment, and demand for new and diversified services. The results are being analyzed (see section 5.1.2 Participate in learning events for details).


6 Communications

6.1 Communications Activities

6.1.1 Communications across market system

Transformative systemic change needs to be both sustainable and scale beyond the life of the program. A significant portion of FTF Inova’s communications efforts are oriented towards achieving broader change through communications with the wider market. It will amplify successes among market actors to crowd-in new entrants and maximize the impact of innovations on the market system. Key communications are presented below:

• FTF Inova produced a video on the truck distribution routes piloted in partnership with CdA. The video explains the concept and benefits of the initiative, and highlights testimonials from CdA staff, agro-dealers and SHFs. The video intends to share best practices in input distribution and to promote replication among input distributors. The video can be viewed here: https://youtu.be/B4yjLvWOXtQ

• FTF Inova produced a video on the professional spraying services pilot. The video describes the approach that Olam, Isolmoc, and Bayer took to provide professional spraying services on the market and reviews the results of the pilot. Featuring testimonials from spray operators trained under the pilot, Olam staff and Isolmoc staff, and beneficiary SHFs, the video aims to share best practices on rolling out new agricultural support services. The video will be published in Q2.

• FTF Inova produced a video on the internship program with UBS, featuring testimonials from the school’s board and students participating in the program. The video aims to promote replication of the internship program among other HEIs. The video will be published in Q2.

• UBS began marketing its practical approach to teaching on its social media channels, and plans to produce a video to promote its internship program. In Q2, FTF Inova will work with UBS to develop a business case analysis on teaching methods and a marketing competition on shop remodeling innovations.

6.1.2 USAID and external communications

As FTF Inova has acquired valuable experience and unique knowledge from implementing an MSD project, the project has a compelling narrative to share as a thought leader specifically on various market systems innovations and behavior changes, and generally on using MSD as a viable approach for achieving sustainable market change in complex environments. To share knowledge, FTF Inova has leveraged the following communication channels this quarter:

• Seminar, Realities of Co-Creating with the Private Sector. FTF Inova Chief of Party (COP) Luca Crudeli presented at a MarketLinks Seminar on the realities of co-creating with the private sector on November 20, 2019. The seminar included two sessions: a public webinar on the approaches and lessons learned from Honduras, Mozambique, and Uganda to support co-creation, which was followed by a discussion with USAID on changes that are needed to successfully work with the private sector. FTF Inova shared the importance of bringing awareness of customer segments and business models FTF Inova is focusing on to the private sector in order to be able to innovate with them, which FTF Inova has done with field visits domestically and abroad. The COP also emphasized the importance of negotiating with evidence and assessing the value of relationships between market actors over the course of the project, which is core to FTF Inova’s MEL approach. There were several questions and follow-up sharing with other actors at the seminar, including from USAID Bureau of Food Security (BFS) and other USAID implementers.

https://youtu.be/B4yjLvWOXtQ


• Blog post, Working with the Private Sector for Systemic Change: What Has (and Hasn’t) Our Partnership Facility Done for Us? FTF Inova has published a series of blogs on MarketLinks discussing insights on partnership principles and partnership implementation from the FTF Inova experience. The last of its 4-part series published in Q1, this blog post explored how a partnership facility can work as an interface between donor-funded programs and the private sector to create partnerships that drive systemic change. The blog post can be viewed here: https://www.marketlinks.org/post/working-private-sector-systemic-change-what-can-good-partnership-facility-do-msd-program

• Case Study, FTF Inova Mozambique Progress in Achieving Impact at Scale. In exploring the question, How can a market system development program achieve impact at scale in a thin market?, the study aims to share insights to the wider international development community on how FTF Inova is structured to engage the private and public sector using an MSD approach to implement a strategic vision and sustainably contribute to reducing poverty and hunger in Mozambique. The study, which covers the second year of project implementation, also discusses what has worked, what hasn’t, and why. The case study will be published widely in Q2.

• Success Story, FTF Inova and Private Sector Engagement. Through the story, FTF Inova shared its achievements and insights working with the private sector thus far on creating an environment in which a new last mile distribution system can evolve and thrive. Some achievements shared include reaching 8,226 rural customers (with 170,523 USD in incremental sales) in the first 3 months of piloting the new distribution system in Manica, and agro-dealers beginning to change their behavior as exhibited through placing orders consistently with the distributor and learning how to make their shops more customer-focused.

• Presentation, FTF Inova Partnerships with Academia. As part of the Positive Youth Development (PYD) policy training, which focused on how implementing partners can implement USAID’s PYD policy, FTF Inova presented on the role of youth in the agricultural system, FTF Inova’s work with HEIs that catalyze opportunities for youth to connect with and bring value to agribusinesses, and ways in which PYD could help FTF Inova such as strengthening the design of internship preparation modules to take into account good youth empowerment methodologies.

https://www.marketlinks.org/post/working-private-sector-systemic-change-what-can-good-partnership-facility-do-msd-program

https://www.marketlinks.org/post/working-private-sector-systemic-change-what-can-good-partnership-facility-do-msd-program


Annex 1: Key Activities as of Q1 FY 2020 List of FY 2020 Activities as of Q1 FY 2020

Partner End of Q1 Status

Input Network Distribution System

Pull Distribution

Scale-up pull-distribution system to 4 new truck routes CdA On track

Increase last mile distribution through pre-ordering system using VBA K2 On track

Expand the distribution of agrochemicals bundled with spraying service offers through new end markets and distribution

channels Isolmoc Cancelled

Develop retail network for organic input distribution BioChem On track

Strengthen pull distribution system with ICT solution for pre-orders Sitole On track

Hire staff to support the rollout of a pre-order system leveraging VBA Sitole On track

Scale the retail footprint through alternative stores and agent models

Test use of input catalog at agro-dealers and nontraditional retailers e.g. CATs CdA On track

Hire a retail marketing specialist to support distribution and retail expansion

CdA On track

K2

Cancelled - K2 will

build in-house

capcacity

Expand commission-based system for K2 seeds through VBAs K2 On track

Develop a system for profiling and engaging better performing agro-dealers Multiple On track

Develop plan for performance management system and rewards Bayer On track

Develop a plan for customer-oriented seed distribution and retail channel Oruwera On track

Customer-centric products and services 

Develop strategy for improved packaging and branding of new seed varieties AIPM On track

Pilot direct marketing tactics for improved seeds K2 On hold

Hire dedicated personnel to support K2 on customer management K2 On hold

Bundling products and services

Bundle spray services with agrochemicals and other inputs product offerings Isolmoc, Bayer Cancelled

Ngala, Bayer On track

Bundle agrochemical distribution with extension information and spray services INCAJU On track

Agro-dealers leverage pre-ordering to test bunding of products and services Multiple Ongoing

Bundle seeds with recommended and discounted fertilizer, pesticides, etc. Pannar, Bayer On track

Hire two technical people to support with the management and evaluation of the pilot with Pannar Pannar On hold

Human centered design to improve customer experiences at retail locations

Test simple shop remodeling and merchandising tactics that increase foot traffic Cantina 2001 Completed

Test new store concept for their shops in rural areas CdA On track

Hire a marketing firm to provide specialized customer management training to CdA staff CdA On track

Co-investment in store layouts as an incentive for distributor and retailer's performance management scheme Bayer On track

Supply Chain Management System

Transparent performance management mechanism with supplier clubs


Implement Supplier club model in collaboration with cooperatives Miruku On track

Supplier club model to increase castor beans and cash crops for processing Novo Madal On track

Offer performance incentives to maize farmers supplying MeTL milling MeTL Postponed

Pilot supplier club model with cotton and cashew suppliers Olam On track

Pilot performance incentives for traders and famers Agrico Marketing Cancelled

Pilot performance incentives with cashew microprocessors Cashew Yetu Cancelled

Certification and quality standards for premium domestic and export markets

Improve the traceability system of raw cashew nut from suppliers Condor Nuts On track

Acquisition of certification for pulses for export Agrico On track

Certify supply and processing for Baobab fruit processing company Carpe Diem On track

Targeted sourcing, branding, marketing for the domestic markets

Map consumer preferences on marketing and branding for Mozambican value-added products and provide sourcing support to

offtakers

MGT On track

Ka Da Terra Postponed

Test domestic market sourcing capacity of quality Moz agri commodities and the capacity of formal retail channels to offer

affordable prices Ka Da Terra Postponed

Introduce wholesale function linking farmers to high value domestic markets Ka Da Terra Postponed

Optimize input distribution routes by bringing fruits and vegetables from the production areas to urban markets. Adicional Postponed

Strategic Alliances between Buyers, Input Suppliers and Finance

Develop a marketing model to promote inputs and land preparation service through performance incentives Prodeca Postponed

Promote linkages between MeTL, input suppliers and business services using ICT Solution provided by Green Fingers Mobile

METL/ Bayer/

Green Fingers

Mobile

On track

Support Services

Marketing firms developing and providing support services for agribusinesses

Map and profile input retailers as research to target them with marketing service offers around customer-centric approach such

as customer service, stock management, real time data capturing and merchandising Tangerine On Track

Scale market research such as brand awareness analysis for agri-firms Forcier Postponed

Test regional brand to grow agribusinesses market to urban areas Vale do Zambezia Postponed

Transportation and logistics agriculture support services

Develop new logistics services and support AppLoad to launch its GPS fleet tracking and phone-based agency/ match-making

services AppLoad On track

Support logistics company to introduce match-making services that can increase backloads and improve efficiency Adicional On track

Explore conventional transport networks as a viable logistic solution for formal retail channels Ka Da Terra Postponed

Information, technical support and feedback via radio programming 

Hire a Media Engagement Consultant to develop and train partners to develop media marketing plans SIRT, Monapo On track

Organize regular local Agric Fairs for input firms SIRT, Monapo Cancelled

Organize regular CRF and produce tailored radio programs to attract sponsors SIRT, Monapo Cancelled

Organize regular Marketing Pitch Events SIRT, Monapo Cancelled

Develop brand Awareness and Costumer Feedback radio programs for input Firms SIRT, Monapo Cancelled

Junior consulting services to benefit private sector, curricula, and students

Develop and pilot business simulation tools as a basis to develop students' skills to succeed in internships and attract private

sector to co-invest in the running costs of internships

UCM On track

UBS On track


Support HEIs to develop marketing plans and hold regular network events with agri-firms to market low-cost junior consulting

services UBS On track

Expand internship program to input retailers for the roll-out of the VBAs ISPM, UCM Ongoing

UBS On track

Improve financial services in the agricultural sector

Mobilize domestic remittances and mobile payment for inputs and mechanization Prodeca Postponed

Increase in-kind input credit through Absa Bank ESD program in partnership with agro input suppliers Absa On track

Develop client databases and georeferencing in support of WII investments Hollard On track

Test flexible cash payment terms for investments in transport technology Ecotri On track

Inventory and digital payment specific solutions for agribusinesses

Offer ICT solution that tracks and applies farmers performance metrics, information flow, inventory management, and suppliers'

payment.

Green Fingers

Mobile On track

Input firms and out-growers adopt M-Pesa payment system to expand delivery Vodacom On track

Monitoring, Evaluation, and Learning

Intervention Measurement using Probe-Measure-Respond

Consolidate and update Probe Library of innovations and metrics Ongoing

Deploy a simplified business data tracker and analytics for partners On track

Increase analysis linking agent and system level, with an additional analyst focusing on sociograms and market system health and

dynamics Ongoing

Refresh training on relationship measurement and Network Analysis using Nvivo and Kumu On track

Help partners listen and adapt from stakeholder feedback from customers, suppliers, and employees through use of the BPA for

data collection services and the internship program On track

Revamp intervention monitoring plans to focus on probes not partners in database and update based on experiments. Ongoing

Assess/study progress, especially towards systemic change

Use the Health System tools semi-annually for cohorts and review for signs of systemic change On track

Assess mid-line values of trust and cooperation dimensions and consider resilience of relationships post cyclone(s) On track

Deploy at least two tools for deduction analysis (Outcome harvesting and contribution analysis) based on Health Systems

Measurement results On track

Conduct an internal data quality assessment (complete the other 4 indicators) On track

Prioritize/conduct in-depth studies (see Research below for detail) On track

Reflecting, adapting, reviewing

Determine effectiveness of current workflows/systems/tools/platforms Ongoing

Reflect on progress on theory of change in quarterly review and reports Ongoing

CLA Learning Events

Collaboration

Host coordination meeting with other FTF activities Ongoing

Implement the Bottom of the Pyramid Masterclass On hold

Exchange information and learning with other USAID activities/donor programs Ongoing

Share lessons learned with other implementing partners (i.e. Market Systems Development Network) Ongoing

Learning

Market System Symposium 2020 – (Cape Town, South Africa) On track

2020 Small Enterprise Evaluation Project Annual Conference (USA) (TBD) On track


EVI training-of-trainers for inputs firms On track

Participatory stakeholder meetings (TBD) TBD

Exchange visits (Kenya, Zambia) (TBD) TBD

Exchange visit to University of Ferrara (TBD) TBD

Evaluation 2020 workshop (October 26-31, Portland, Oregon –USA) TBD

Online training on results measurement using Donor Committee for Enterprise Development Standard TBD

Results measurement for sustainable private sector development (Bangkok) TBD

Research

Consumer research profiles of segments of farmers as consumers On track

Research on mechanization needs of female SHFs On track

Study on financial behavior and needs of SHFs On track

Building the Business case for Female VBAs On track

Measure effectiveness of pilot CRF programs On track

Research on nonfinancial incentives to stimulate SHF participation On track

Conduct research on outcomes of evidence-based probes On track

Conduct ad hoc research pieces identified during implementation of Deal Notes (including case studies) On track

Market research (e.g. the professional spraying services, etc.) (TBD) On track

Conduct domestic remittances study On track

Study the dispute resolution mechanisms, economics of the production of high-end products, and radical technology adoption On track

Conduct intervention baseline studies Ongoing

Conduct various mappings (e.g. consumer preferences on marketing and branding, audiences for tailored products and services,

input retailers for targeted marketing services, etc.) On track

Communications

Develop a Communications Plan that outlines key partners, audiences, messages, and tools for implementation Ongoing

Engaging in strategic internal communication to maximize FTF Inova’s learning agenda and ensure cohesive communications

Develop materials for a monthly internal newsletter Ongoing

Conduct quarterly and annual reporting to USAID Ongoing

Ensuring effective communication among FTF Inova, partners, and market actors to maximize market system outcomes

Develop marketing materials and videos to educate potential partners on MSD approach Ongoing

Provide regular updates on market change and opportunities Ongoing

Disseminate findings from research studies (TBD) Ongoing

Develop key messages to amplify successful partner experiences Ongoing

Developing external outreach to share and amplify knowledge and experiences from FTF Inova’s MSD approach

Participate in conferences and workshops to disseminate project-related experiences and knowledge Ongoing

Develop content to amplify messages from each technical portfolio Ongoing

Management and Operations

Human Resources

Continue to provide support to FTF Inova functions (recruit short-term consultants, coordinate MSD training, meet labor and

legal obligations, update policies and procedures) Ongoing

Assist partners with award and incentive systems that establish standard performance measures Ongoing

Support partners in reviewing their organizational structure (TBD) Ongoing

Support the design, management, and implementation of the internship program Ongoing


Procurement

Continue to meet the requirements of the FTF Inova Activity (support quality, cost-effective and targeted procurements) Ongoing

Provide guidance to partners on market scoping and research activities (identifying pre-selected vendors, conducting

expressions of interest, etc.) Ongoing

Assist with the onboarding of vendors and partners in procurement processes Ongoing

Administration

Continue to support FTF Inova operations and the partners (logistics for project events and travel, general project facilities

management) Ongoing

Assist partners develop logistics and fleet management systems Ongoing

Assist partners develop inventory and stock management (Input Distribution Network System) Ongoing

Finance

Support FTF Inova Activity with internal and external financial reporting Ongoing

Support FTF Inova in development of Deal Notes, grant budgets, and financial monitoring of the Deal Notes and grants Ongoing

Continue support on project financial reporting (monthly financial reporting, quarterly value-added tax report, annual accruals,

annual income tax reporting) Ongoing


Annex 2: Key Activities for Q2 FY 2020 List of FY 2020 Activities as of Q2 FY 2020

Partner

Input Network Distribution System

Pull Distribution

Scale-up pull-distribution system to 4 new truck routes CdA

Increase last mile distribution through pre-ordering system using VBA K2

Develop retail network for organic input distribution BioChem

Strengthen pull distribution system with ICT solution for pre-orders Sitole

Hire staff to support the rollout of a pre-order system leveraging VBA Sitole

Scale the retail footprint through alternative stores and agent models

Test use of input catalog at agro-dealers and nontraditional retailers e.g. CATs CdA

Hire a retail marketing specialist to support distribution and retail expansion CdA

Expand commission-based system for K2 seeds through VBAs K2

Develop a system for profiling and engaging better performing agro-dealers Multiple

Develop plan for performance management system and rewards Bayer

Develop a plan for customer-oriented seed distribution and retail channel Oruwera

Customer-centric products and services 

Develop strategy for improved packaging and branding of new seed varieties AIPM

Pilot direct marketing tactics for improved seeds K2

Hire dedicated personnel to support K2 on customer management K2

Bundling products and services

Bundle spray services with agrochemicals and other inputs product offerings Ngala, Bayer

Bundle agrochemical distribution with extension information and spray services INCAJU

Agro-dealers leverage pre-ordering to test bunding of products and services Multiple

Bundle seeds with recommended and discounted fertilizer, pesticides, etc. Pannar, Bayer

Hire two technical people to support with the management and evaluation of the pilot with Pannar Pannar

Human centered design to improve customer experiences at retail locations

Test new store concept for their shops in rural areas CdA

Hire a marketing firm to provide specialized customer management training to CdA staff CdA

Co-investment in store layouts as an incentive for distributor and retailer's performance management scheme Bayer

Supply Chain Management System

Transparent performance management mechanism with supplier clubs

Implement Supplier club model in collaboration with cooperatives Miruku

Supplier club model to increase castor beans and cash crops for processing Novo Madal

Offer performance incentives to maize farmers supplying MeTL milling MeTL

Pilot supplier club model with cotton and cashew suppliers Olam

Certification and quality standards for premium domestic and export markets

Improve the traceability system of raw cashew nut from suppliers Condor Nuts

Acquisition of certification for pulses for export Agrico


Certify supply and processing for Baobab fruit processing company Carpe Diem

Targeted sourcing, branding, marketing for the domestic markets

Map consumer preferences on marketing and branding for Mozambican value-added products and provide sourcing support to offtakers MGT

Ka Da Terra

Test domestic market sourcing capacity of quality Moz agri commodities and the capacity of formal retail channels to offer affordable prices Ka Da Terra

Introduce wholesale function linking farmers to high value domestic markets Ka Da Terra

Optimize input distribution routes by bringing fruits and vegetables from the production areas to urban markets. Adicional

Strategic Alliances between Buyers, Input Suppliers and Finance

Develop a marketing model to promote inputs and land preparation service through performance incentives Prodeca

Promote linkages between MeTL, input suppliers and business services using ICT Solution provided by Green Fingers Mobile METL/ Bayer/ Green

Fingers Mobile

Support Services

Marketing firms developing and providing support services for agribusinesses

Map and profile input retailers as research to target them with marketing service offers around customer-centric approach such as customer

service, stock management, real time data capturing and merchandising Tangerine

Scale market research such as brand awareness analysis for agri-firms Forcier

Test regional brand to grow agribusinesses market to urban areas Vale do Zambezia

Transportation and logistics agriculture support services

Develop new logistics services and support AppLoad to launch its GPS fleet tracking and phone-based agency/ match-making services AppLoad

Support logistics company to introduce match-making services that can increase backloads and improve efficiency Adicional

Explore conventional transport networks as a viable logistic solution for formal retail channels Ka Da Terra

Information, technical support and feedback via radio programming 

Hire a Media Engagement Consultant to develop and train partners to develop media marketing plans SIRT, Monapo

Junior consulting services to benefit private sector, curricula, and students

Develop and pilot business simulation tools as a basis to develop students' skills to succeed in internships and attract private sector to co-invest in

the running costs of internships

UCM

UBS

Support HEIs to develop marketing plans and hold regular network events with agri-firms to market low-cost junior consulting services UBS

Expand internship program to input retailers for the roll-out of the VBAs ISPM, UCM

UBS

Improve financial services in the agricultural sector

Mobilize domestic remittances and mobile payment for inputs and mechanization Prodeca

Increase in-kind input credit through Absa Bank ESD program in partnership with agro input suppliers Absa

Develop client databases and georeferencing in support of WII investments Hollard

Test flexible cash payment terms for investments in transport technology Ecotri

Inventory and digital payment specific solutions for agribusinesses

Offer ICT solution that tracks and applies farmers performance metrics, information flow, inventory management, and suppliers' payment. Green Fingers Mobile

Input firms and out-growers adopt M-Pesa payment system to expand delivery Vodacom

Monitoring, Evaluation, and Learning

Intervention Measurement using Probe-Measure-Respond

Consolidate and update Probe Library of innovations and metrics

Deploy a simplified business data tracker and analytics for partners

Increase analysis linking agent and system level, with an additional analyst focusing on sociograms and market system health and dynamics


Refresh training on relationship measurement and Network Analysis using Nvivo and Kumu

Help partners listen and adapt from stakeholder feedback from customers, suppliers, and employees through use of the BPA for data collection

services and the internship program

Revamp intervention monitoring plans to focus on probes not partners in database and update based on experiments.

Assess/study progress, especially towards systemic change

Use the Health System tools semi-annually for cohorts and review for signs of systemic change

Assess mid-line values of trust and cooperation dimensions and consider resilience of relationships post cyclone(s)

Deploy at least two tools for deduction analysis (Outcome harvesting and contribution analysis) based on Health Systems Measurement results

Conduct an internal data quality assessment (complete the other 4 indicators)

Prioritize/conduct in-depth studies (see Research below for detail)

Reflecting, adapting, reviewing

Determine effectiveness of current workflows/systems/tools/platforms

Reflect on progress on theory of change in quarterly review and reports

CLA Learning Events

Collaboration

Host coordination meeting with other FTF activities

Implement the Bottom of the Pyramid Masterclass

Exchange information and learning with other USAID activities/donor programs

Share lessons learned with other implementing partners (i.e. Market Systems Development Network)

Learning

Market System Symposium 2020 – (Cape Town, South Africa)

2020 Small Enterprise Evaluation Project Annual Conference (USA) (TBD)

EVI training-of-trainers for inputs firms

Participatory stakeholder meetings (TBD)

Exchange visits (Kenya, Zambia) (TBD)

Exchange visit to University of Ferrara (TBD)

Evaluation 2020 workshop (October 26-31, Portland, Oregon –USA)

Online training on results measurement using Donor Committee for Enterprise Development Standard

Results measurement for sustainable private sector development (Bangkok)

Research

Consumer research profiles of segments of farmers as consumers

Research on mechanization needs of female SHFs

Study on financial behavior and needs of SHFs

Building the Business case for Female VBAs

Measure effectiveness of pilot CRF programs

Research on nonfinancial incentives to stimulate SHF participation

Conduct research on outcomes of evidence-based probes

Conduct ad hoc research pieces identified during implementation of Deal Notes (including case studies)

Market research (e.g. the professional spraying services, etc.) (TBD)

Conduct domestic remittances study

Study the dispute resolution mechanisms, economics of the production of high-end products, and radical technology adoption

Conduct intervention baseline studies


Conduct various mappings (e.g. consumer preferences on marketing and branding, audiences for tailored products and services, input retailers for

targeted marketing services, etc.)

Communications

Develop a Communications Plan that outlines key partners, audiences, messages, and tools for implementation

Engaging in strategic internal communication to maximize FTF Inova’s learning agenda and ensure cohesive communications

Develop materials for a monthly internal newsletter

Conduct quarterly and annual reporting to USAID

Ensuring effective communication among FTF Inova, partners, and market actors to maximize market system outcomes

Develop marketing materials and videos to educate potential partners on MSD approach

Provide regular updates on market change and opportunities

Disseminate findings from research studies (TBD)

Develop key messages to amplify successful partner experiences

Developing external outreach to share and amplify knowledge and experiences from FTF Inova’s MSD approach

Participate in conferences and workshops to disseminate project-related experiences and knowledge

Develop content to amplify messages from each technical portfolio

Management and Operations

Human Resources

Continue to provide support to FTF Inova functions (recruit short-term consultants, coordinate MSD training, meet labor and legal obligations,

update policies and procedures)

Assist partners with award and incentive systems that establish standard performance measures

Support partners in reviewing their organizational structure (TBD)

Support the design, management, and implementation of the internship program

Procurement

Continue to meet the requirements of the FTF Inova Activity (support quality, cost-effective and targeted procurements)

Provide guidance to partners on market scoping and research activities (identifying pre-selected vendors, conducting expressions of interest, etc.)

Assist with the onboarding of vendors and partners in procurement processes

Administration

Continue to support FTF Inova operations and the partners (logistics for project events and travel, general project facilities management)

Assist partners develop logistics and fleet management systems

Assist partners develop inventory and stock management (Input Distribution Network System)

Finance

Support FTF Inova Activity with internal and external financial reporting

Support FTF Inova in development of Deal Notes, grant budgets, and financial monitoring of the Deal Notes and grants

Continue support on project financial reporting (monthly financial reporting, quarterly value-added tax report, annual accruals, annual income tax

reporting)

1300 Pennsylvania Avenue, NW

Washington, DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3524

www.usaid.gov

Feed the Future Mozambique Agricultural Innovations ...

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