Agricultural Sector Investment Appraisal Manual: An Application Case To Mozambique

This manual provides a structured framework for appraising investment projects in Mozambique’s agricultural sector. The manual covers key stages of project appraisal, including Project Profile, Prefeasibility Study, and Feasibility Study, incorporating tools such as Cost-Benefit Analysis (CBA), Stakeholder Analysis, Risk Assessment, and Climate Change Screening to enhance decision-making and optimize resource allocation. A key illustrative example in this manual focuses on a cashew nut and pineapple intercropping project in the Mabote District, which aims to transition 200 subsistence farmers into commercial agriculture. The project, supported by the Ministry of Agriculture and Rural Development, seeks to enhance farmer incomes, improve access to financial and market resources, and contribute to Mozambique’s agricultural exports. By providing farmers with the necessary inputs, training, and infrastructure, the initiative promotes sustainable agricultural practices while addressing issues such as rural poverty, food security, and rural-urban migration. Through a structured Integrated Investment Appraisal (IIA) approach, the project ensures net positive benefits, improves livelihoods, and contributes to national development goals. Incorporating illustrative examples and case studies facilitates practical application, enabling policymakers to make informed investment decisions that promote long-term agricultural sustainability and economic growth. Additionally, the manual highlights climate resilience strategies to mitigate risks posed by droughts, floods, and other extreme weather events.