Agriculture and mining in the Beira Corridor

Emerson Zhou

No 177301, 2013: Mining, Agriculture and Development: Bread from stones?, 26-27 August 2013 from Crawford Fund

Abstract: The Beira Corridor of Mozambique is a natural transport corridor between the coast and neighbouring inland countries in the region. It is rich in resources, with very large reserves of coal and agricultural land. More than half (60%) of the Tete region in the corridor is reserved for mining, with two large international companies already operating there. These are expected to develop road, rail and ports in the region, besides employing thousands of workers, though that number will drop considerably when construction is complete. The companies have already resettled hundreds of local people, mainly subsistence farmers, to free up the land for mining. The miners need also to provide houses and social amenities to these displaced people. At present, neighbouring countries produce the food for the companies’ employees involved in the mining operations, and there is not always enough. While the mining companies see this as a procurement problem, our institution, the Beira Agricultural Growth Corridor (BAGC), considers that long-term development of agriculture in the region would be a valuable solution. The BAGC is stimulating linkages between mining and agriculture by structuring demand and developing supply chains involving local producers. It is clear that mining offers opportunities for agriculture via improved infrastructure, and the mining companies’ need for food gives local farmers a nearby market, especially during the construction phase. The role of the BAGC is to create incentives for local sourcing, and to develop core investment in local agricultural development.

Keywords: Industrial Organization; International Development; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 7
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cfcp13:177301

DOI: 10.22004/ag.econ.177301

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