Farmers' Clubs: Improving access to markets and financial resources
The Farmers Club Sofala and Zambézia project has a component named Marketing and Microfinance that aims to strengthen farmers' access to markets and financial resources.
For the farmers to obtain better prices for their products, they have been trained in negotiation techniques and price information systems and are informed about the prices of agricultural products practiced in different markets. Radio stations were also deployed to disseminate information in local languages and 28 information boards were placed in the two provinces to assist in the display of commodity prices.
Savings Clubs are designed to give farmers the opportunity to save money and borrow money. To date, the project has 56 Savings Clubs operating on a 5 to 15% interest basis. Members in savings clubs can develop proposals for small business financing and support each other.
Another element of the project is the microfinancing of small grants. Farmers are trained in basic business management, where they gain insight into the formulation of business plans and the development of proposals. 620 farmers submitted proposals for the disbursement of subsidies and of these 159 individuals and 24 groups' had their proposals approved and funds disbursed.