Trial, error, and success: Learning from 20 years of voucher interventions in Mozambique
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Trial, error, and success: Learning from 20 years of voucher interventions in Mozambique David Calef, Cash Transfer Programming Expert, Office of Emergencies and Resilience, FAO Alberto di Grazia, Agricultural Officer (Cash and Vouchers), FAO Mozambique Simone Alzari, Management Information System (MIS) Unit Coordinator, Office of Emergencies and Resilience, FAO Shawn McGuire, Agricultural Officer (Seed Security), Plant Production and Protection Division, FAO 18 May 2021
FAOMZ vouchers
USAID ADM e-card. Ukaid Cabo Delgado e-card.
EU Paper voucher for MDG1c.
USAID IDAI e-card. EU PROMOVE e-card.
Geographical coverage of
FAOMZ voucher interventions
Cabo
Niassa Delgado
Tete
Nampula
Zambézia
Manica
Sofala
Inhambane
The evolution of FAO voucher interventions in
Mozambique (2001-2021)
MDG1c: 2013 - 2019 PROMOVE
Food Facility Agribiz
Paper Vouchers E-Vouchers 2020 - 2024
E-Vouchers
2001-
2015 2009- 2013
2015 2015 2019-
2015 2020- 2020-
2015
2008 2011 2020 2021 2021
Input Trade Fairs Paper Vouchers E-Vouchers E-Vouchers
Idai Capo Delgado
Emergency Emergency
Different problems, different objectives, one tool
Recurrent shocks
FAOMZ Response:
Short-term
interventions to help
farmers recover their
livelihoods
In most cases,
Chronic poverty FAOMZ uses vouchers.
FAOMZ Response:
Long-term interventions
to help farmers
graduate from
subsistence farming
Key challenges for smallholder farmers in Mozambique
01 04
Weak agricultural Farmers’ insufficient
inputs supply chain appreciation of the
benefits of seeds of
improved varieties
02
Poor seed quality and
poor seed quality
05
Free distribution of
control agricultural inputs
03 06
Low use of yield- Farmers’ weak access
enhancing agricultural to markets
inputs
Drawbacks of paper vouchers
Time-consuming and
cumbersome voucher
reconciliation process
Delays in payment of
agro-dealers
Labour-intensive
monitoring of the
intervention
High costs of repeated
distribution of vouchers
Farmer copayments
Copayment advantages
In most FAO voucher • Strengthen farmers commitment
interventions in to the objectives of voucher
intervention
Mozambique in order • Improves the sustainability of the
to be eligible to intervention
receive voucher
entitlements, farmers Copayment disadvantages
must co-pay a fraction • It’s regressive: it screens out
of the value of the farmers who cannot afford it
voucher.
Switch from paper to electronic vouchers
2013 2015
Paper voucher From 2015, all FAO
for MDG1c. vouchers have
been electronic.
FAO MDG1c e-voucher objectives
Increase
agricultural
production of
smallholder farmers
by providing
access to
agriculture inputs
(e.g. seeds,
Objectives fertilizers)
Strengthen the
supply chain of
agricultural
inputs (farmers –
retailers - agro-
dealers -
wholesalers)How did FAO e-vouchers work in the MDG1c?
1. The beneficiary makes the copayment. 2. The subsidy is already in the
card (MDG1c contribution).
Copayment in cash in
the agrodealer shop
Subsidy
E-money
3. The card now has the 4. The beneficiary purchase agricultural inputs in
copayment and the MDG1c any of the agrodealer’s shops participating in the
subsidy. e-voucher program.
Electronic voucher
E-voucher
Agri. inputs
(seeds, fertilizers, pesticides)FAO MDG1c e-voucher
intervention (2015-2019) Figures at a glance -
2017- 2018 campaign
Nampula
22,800
Households supported
with e-vouchers
Zambézia
Manica
Sofala
>100
Agrodealers / retailersAchievements of MDG1c e-voucher intervention
Increased interest of agro- 06 01 Increased farmers’
dealers in expanding their willingness to co-pay for
business and graduation of quality agriculture inputs
retailers to agro-dealer
status
Improved commercial 05 02 Improved monitoring
relationship among capacity
supply chain actors
Faster reconciliation of 04 03 Reduced risk of fraud
vouchers transaction data (e.g., duplication of
beneficiaries)Promotion of new seed
varieties
NUA 45 GEMA yellow
beans maizeImpact evaluation of the e-voucher intervention
(2014-2019) in Mozambique
Main findings:
01 02 03 04 05
Increase in the Increase in the Increase in Diversification Stronger
hectares of quantity of income earned of agricultural relationships
maize cultivated maize harvested from agricultural production between farmers
sales and revenues and agro-dealers/
(+2/5th of (+ 350 kg of
retailers
hectare) maize (+ USD 80)
harvested) (3 to 4 times
growth in volume
of sales)Humanitarian crisis in 2019
In the Spring of
2019, two strong
tropical cyclones
(Idai & Kenneth)
made landfall
just before the
harvest period
2019 Crisis
2.5 million people
(~10% of the
country’s
population) were
in need of
humanitarian
assistance in 5
provincesFAO e-voucher humanitarian response In less than 6 weeks FAO customized its e-voucher system to respond to the needs of over 8,000 HHs affected by Cyclone Idai in the provinces of Manica and Sofala
FAO e-voucher humanitarian response
2019-2020
Agriculture Fishery
>50,000 HHs ~1,000 HHs
• Providing farmers with • Providing fishermen with
access to agricultural inputs access to fishing gear
• Period: Nov 2019 – Jan 2020 • Period: Feb – Mar 2020
• Donor: USAID/OFDA & • Donor: USAID/OFDA
WB/FNDSSwitching to a FAO e-voucher system
In 2020, FAO customized IDEA,
an existing Management
Information System (MIS), to the
context of Mozambique, and, in
a few months, FAO was able
to assist beneficiaries with a
newly-developed e-voucher
application (NiMO) and a
revised workflow.FAO ongoing e-voucher interventions
Cabo Cabo Delgado/Nampula
Delgado IDPs and host communities
Emergency
Development # 12.500 HH
Emergency and Nampula
Development
Zambézia Nampula/Zambézia
PROMOVE Agribiz
Manica
Sofala # 7.000 HH
Manica/Sofala
IDAI recovery
# 4.000 HH Sofala
Cyclone Eloise response
# 3.500 HHFAO fast response to cyclone Eloise in
early 2021
Mid-February 2021, FAO
received funds from the UK to
assist beneficiaries affected by
cyclone Eloise (district of Buzi,
Sofala).
In 3 weeks, over 3500 HHs were
registered and had access to
agriculture inputs through FAO’s
e-vouchers.What is IDEA?
Identification, Delivery and
Empowerment Applications
– a Management
Information System (MIS)
that facilitates secure
beneficiary
identification, registration
and data management.Why IDEA?
DevOps
Modular system approach
Flexibility and
FAO ownership proximity with
the country
offices
Advanced
Cost savings
technologiesIDEA in Mozambique
Offline functionality NFC card technology
Registration and Enables immediate, offline
transactions can be carried redemption after which the
out offline. balance is updated in the
card.
Flexibility Facial identification
Input prices can be Beneficiaries’ identities can
customized for each be accurately verified at
agrodealer. Beneficiaries can every transaction (in pilot).
redeem vouchers partially at
several agrodealers.E-Voucher App (NiMO)
Implementation dashboard
Where can we make
things better? Improved seed
quality control
Strengthen the
network of agro
Improved gender dealers/retailers
analysis (invest on private
sector
development in
rural areas)
Improve monitoring
and beneficiary Refine beneficiary
feedback process targetingWay forward
01 02 03
Multi-wallet Cash Hand-over to
assistance GovernmentThank you! Questions?
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