30th November 2022, MAPUTO AFECC GLORIA HOTEL

Presenting the outcomes of the supply and value chain analysis of the salt sector in Mozambique; Understanding current market forces and bottlenecks for the salt supply in Mozambique; in particular understand the upgrade of the SME salt sector; Taking stock of recent initiatives aimed at consolidating the SME salt sector in Mozambique; Learning about a potential business case for better quality salt from the SME salt sector; Validating research findings and agreeing on next steps to strengthen the SME salt sector in Mozambique.

Background

Iodization of salt by SMEs in Mozambique has shown to be challenging from a technical and business perspectives. The salt currently produced by SME producers is poor quality, non-refined, and non-iodized. Distributors procure the salt directly from these producers for sale in retail markets and for industrial use. It is estimated that SMEs provide about 60% of the total amount of salt produced in Mozambique.
Despite a legal requirement to iodize salt, SME producers don't have the capability nor the incentive to produce higher quality salt and iodize it which undermines the iodine intake of the consumers of this salt and poses a threat to the iodine status.

In an effort to increase production of quality iodized salt by the SME sector in Mozambique, MOI, IGN and UNICEF proposed to conduct an in-depth supply and value chain analysis of SME salt sector in Mozambique which would clearly identify hurdles and bottlenecks in targeted regions with a view to develop a business case that would be conducive to a general upgrade of the SME salt sector and therefore increase the capability to iodize their salt.

A market study was conducted in Q2 2022 that explored the market/demand for such salt and how a win-win situation could be created for producers of raw salt and for the food processing industry. Based on the conclusions of the landscape analysis, the study aimed at developing a viable business and investment case for improved quality iodized salt by small / medium producers and processors which would detail and identify the investment opportunity. Specifically, the supply chain analysis has been designed to address the following key questions:

Is there scope for aggregation of salt processing and further iodization of salt produced by small-scale producers? If so, what would be the best type of entity to undertake such activity? Is there financial room for such a business model? Would it be profitable and at what scale would this have to be to make it commercially viable?

The objective of this assignment was to develop a business/feasibility plan to improve the proportion of salt that is iodized in Mozambique, particularly in locations where coverage of iodized salt is low and production of salt is driven by small crude producers.

Specifically, the aim of the assignment was to validate whether a business case can be made for an economic entity to process crude, unrefined salt produced by small-scale producers and convert it into higher quality, iodized salt for retail or for food industry use.

A supply chain analysis was designed to address the following key questions:

Is there scope for aggregation of salt processing and further iodization of salt produced by small-scale producers? If so, what would be the best type of entity to undertake such activity? Is there financial room for such a business model? Would it be profitable and at what scale would this have to be to make it commercially viable?

By taking part in this national consultation participants will be able to:

Identify the reasons why the current iodization by small/medium-scale processors are not working as expected and what can be done to improve the situation; Identify which region(s) and type(s) of business model / economic partner would constitute opportunities worth exploring to increase production of high quality, iodized salt; Learning about a potential viable business case and business plan conducive to improving the supply of high quality, iodized salt in Mozambique.

Programme

Participants shall include but not be limited to the following organizations:
Ministry of Industry, GAIN, UNICEF ESARO, UNICEF Mozambique Country Office, IGN, AMPCM, USAID Mission, EUD Mozambique, TNS, AISAL and APROCOSAL.UNIDO/PROMOCE Comercio, WFP, Ireland, Technoserve, Cooperativa de Salineiros de Cabo Delgado, COPSAL-CD, Cooperativa de Salineiros da Zambézia, Cooperativa de Salineiros em Maputo, Tropigalia, A&S Moçambique - Distribuidores Nacionais.

Moderator: Dr Eduarda Mungoi, Ministry of Industry and Commerce of Mozambique & Dr. Festo Kavishe, Regional Coordinator, Iodine Global Network