High fuel prices suffocate small and
medium farmers

The debate over the agrarian sector is not only important for Mozambique, but for the world in general, and especially for Africa. The sector is recognized as key to broad-based economic growth, poverty reduction, and food security in sub-Saharan Africa (Chilonda, Machethe, & Minde, 2007)1 . As the backbone of many African economies, this sector generates on average 25% of the Gross Domestic Product (GDP) in Sub-Saharan Africa and contributes about 44% to employment generation for the region2 . Studies indicate that growth in agriculture has the potential to reduce poverty two to three times more than growth in any other sector.

Yet, Sub-Saharan Africa remains the only region in the world where food insecurity and poverty have worsened over time 3 . The poor performance of agriculture in productivity and competitiveness represents a serious structural challenge for the continent, which must deal with its demographic transition and compete in an increasingly globalized and more competitive market for agricultural and agro-food products.

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