Thursday, September 19, 2019

[Mozambique]’s nut factories have made a cracking comeback But farmers are being squeezed

Sep. 12, 2019

Of cashews and cash
Mozambique’s nut factories have made a cracking comeback 
But farmers are being squeezed


Nampula - Industrialisation, up close, is organised monotony. For eight hours a day workers at a cashew factory in northern Mozambique scoop nuts from their oily shells. 

It is hard to talk above the thrum of machines. The pay is a modest 4,600 meticais ($76) a month. But it is a job. There are precious few good ones in Mozambique.

African countries are trying to climb the industrial ladder, and the processing of agricultural commodities seems a natural first step. 

By roasting coffee and spinning cotton they hope to boost export earnings and create jobs. 

For example, a fifth of the retail price of cashews goes to primary processors. By reviving its industry, Mozambique has captured some of that value. But its story also shows why industrial policy is hard to get right.

Reporters

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