Impact Assessment

SNV and Cashew Sector Reform: 'Governance for Empowerment in Cashew Value Chain Development', SNV, 2008

    Description
    Since 2007, SNVÂ’s Governance for Empowerment (GfE) programme has worked with the government in Moginqual, an important district for cashew production in Mozambique's Nampula Province, to improve the incomes of producers in the cashew value chain. A market assessment identified the lack of coordination among producers, complicated in particular by the lengthy procedure for the legal registration of associations, as a key constraint to income growth. With the removal of this bottleneck, recognised associations should give producers a better price for their cashew by enabling them to a) reduce the number of middle men in the supply chain; b) increase their bargaining power; c) gain access to credit and d) enter new markets. This report examines the extent to which these changes have occured, and the impact they have had on the incomes of intended beneficiaries.

    Summary of results
    Ten associations have been legalised. These have in turn accessed $40,000 in credit. The legalised associations have reportedly reduced the number of intermediaries needed in the value chain, transferring a greater share of added value to the producers. The formation of legalised associations has also made Fair Trade certification possible, giving producers access to a new, high-end market. The associations also serve to increase the voice of small-scale producers, and with a growing number of women interested to take part, can have a positive effect of gender-related poverty.