Cultivating Opportunities for Faster Rural Income Growth and Poverty Reduction : Mozambique Rural Income Diagnostic
Mozambique’s economy has experienced strong growth over the last two decades, with GDP expanding at an annual average rate of 7.2 percent. However, this growth has been unequally shared and rural areas still lag far behind urban centers in both mon...
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| Format: | Report |
| Language: | English |
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Washington, DC: World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099140003242213664/P1680190bcb5df04708ccb0a5b2be0cd135 http://hdl.handle.net/10986/37217 |
| Summary: | Mozambique’s economy has experienced
strong growth over the last two decades, with GDP expanding
at an annual average rate of 7.2 percent. However, this
growth has been unequally shared and rural areas still lag
far behind urban centers in both monetary and non-monetary
dimensions of wellbeing. As most poor households live in
rural areas, increasing rural incomes is essential to
reducing poverty and ensuring the benefits of growth are
distributed more equally. Income growth opportunities for
rural poor households in Mozambique in the next 5-10 years
are predominantly in the agricultural sector. Smallholder
farming is the chief activity for most rural households,
with income from non-farm sources and migration playing a
lesser role and often constrained to specific regions.
However, low levels of agricultural productivity, low
participation in input and output markets, and high
vulnerability to seasonality factors and shocks inhibits the
capacity of rural households to increase their incomes. This
report proceeds as follows: After setting out the framework
and methods in more detail in section two, the following
section provides some context by detailing the income,
assets, and market engagements of rural households in
Mozambique, focusing on a characterization of the
livelihoods of the rural bottom 40 percent. Section four
discusses the opportunities for growth across the main three
sources of rural income (farm, non-farm, and migration).
Section five then presents the main barriers to taking
advantage of these opportunities, detailing the evidence
behind this prioritization for the three most binding set of
constraints. From this list of priority constraints, policy
actions and investments to address the top three groups of
binding constraints are discussed. |
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