Micaia Foundation has a track record of identifying and developing new opportunities for people to earn money. Between 2014 and 2020, we supported the development of a new more commercial baobab fruit value chain, that has had lasting success especially through Baobab Products Mozambique. As part of our work in the buffer zone of the Chimanimani National Park funded (2022-2026), we supported research into medicinal plants with potential for essential oil production as well as herbal teas, and trained community members in sustainable harvesting and primary processing of leaves. Identifying and supporting early-stage development of new opportunities is a form of ‘smart subsidy’ – using donor funding to put in place essential foundations for subsequent commercial investment that can bring lasting opportunities and benefit to people and communities.

Subsistence and small-scale commercial farming remain at the core of the rural economies where Micaia works, and we support farmers in various ways. However, in the face of a more volatile climate,  small-scale farming families cannot thrive based on agriculture alone. Most families typically farm less than 2 hectares each year, and even in a good year, the yield, split between consumption and marketing, cannot meet a family’s needs. This is why Micaia places great emphasis on helping families diversify their livelihoods. Non-timber forest products, which are mostly seasonal and short-term, are a particularly useful and often critical source of additional cash income.

Investments in technical training, equipment, and organisation need to be matched by connecting producers with markets. Micaia’s work in value chains such as honey, baobab, essential oils, horticulture, and specific crops such as Bambara Nut always incorporates linking with specific buyers or markets. Supporting supply chain development by, for instance, helping organise producers, training to meet specific quality standards, investing in storage capacity or primary processing equipment that can be owned by producers, are all further examples of what Micaia refers to as ‘smart subsidy’.

With 1 job being created for every 10 people leaving some form of education, Mozambique needs entrepreneurs! Formal employment is and will continue to be a dream for many young people, but self-employment and the creation of a business that could grow and offer jobs to others, is a realistic option. Mozambique has great opportunities – its natural resource base, growing urban populations needing services and goods, increasing numbers of visitors needing services, and the fact that so much of what people consume currently is imported! This is why Micaia has established a Green Economy Incubator in Chimoio, providing young people with support to identify opportunities and develop their business. And it’s why we encourage young people in rural communities to think creatively about how to diversify their livelihoods using money earned through commodity sales.