MUSIKA phase 3
Contribution ID : SE-0-SE-6-11097This website displays open data about Swedish aid, which shows when, to whom and for what purpose Swedish aid is paid out, as well as what results it has produced. This page contains information about one of the contributions financed with Swedish aid.
The impact goal of the Musika initiative is to reduce rural poverty through integrating smallholder farming households in well functioning agricultural markets and thereby contributing to productive employment. The goal for 2018-2021 is that another 140 000 poor households, i.e. around 800 000 people, shall increase their income. The outcome goals are to deepe...
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The impact goal of the Musika initiative is to reduce rural poverty through integrating smallholder farming households in well functioning agricultural markets and thereby contributing to productive employment. The goal for 2018-2021 is that another 140 000 poor households, i.e. around 800 000 people, shall increase their income. The outcome goals are to deepen, broaden and strengthen inclusive agricultural markets in key agricultural provinces of Zambia. Deepening of markets refers to a greater range of products and services being made available to farming households while broadening implies reaching markets that were previously underserved or unserved. Strengthening refers to markets becoming more viable for both buyers and sellers. Musika is a nonprofit company owned by six key Zambian agriculture related institutions (Company limited by guarantee). As Musika lacks organizational link to Europe and its operations is solely carried out in Zambia, trade in the EU's internal market is not affected and the operation is not deemed to present a risk of unauthorized state aid. Musika’s operations are implemented throughout Zambia by a local team of agricultural market development experts. It started its operations in November 2011 with funding from Sweden through Sida/the Embassy in Lusaka and from November 2012 with co-funding from DFID Zambia, a funding that ended in 2016 at the change of DFID strategy in Zambia. Before they withdraw, DFID carried out an evaluation showing very good results. Musika cooperates (directly or indirectly) with the most important actors in the agricultural sector in Zambia and Musika’s primary clients are private actors within the agricultural market systems- from multinational companies to small scale entrepreneurs – that show interest in cooperating with poor small scale farmers (as consumers, producers, clients, employees etc.). Musika’s success is based on its capability in finding the right cooperating partner, networking with and facilitating them in the right way. Through technical support and catalytic investment, Musika deepens the private actors’ commercial engagement in relevant markets and contributes to changing the foundation for how these markets work, to be more beneficial top small scale farmers. Indirectly, a substantial number of small scale female and male farmers benefit from the increased access to markets and services. During 2013-2017 around 1 million people experienced increased incomes thanks to Musika. Those small scale farmers and their households are the main target group for Musika’s operations in the sense that all activities aim at improving the conditions for this group. It can be considered that Musika, through its business, provides services in a market. However, support to Musika is not considered to be subject to procurement, since the aid consists solely in financing Musika's activities through core support. Sida makes no demands for results or delivery, other than evidence showing that the funds are used for the intended purposes. In Musika’s business plan for 2018-2021 own lessons learned and conclusions from evaluations have been taken into account, a new strategy has been elaborated and the following investment areas have been identified: 1) Business and Finance (capacity development of small scale enterprises, access to finance, digital solutions); 2) Agricultural technology (mechanisation, irrigation, post-harvest technologies, biological pesticides) 3) Agricultural diversification (livestock, irrigated crops, drought tolerant crops, Tree Crops and Agroforestry) and 4) Environmental markets (usage of clean energy fort consumption and production purposes, production of clean energy, sustainable use of natural resources). Moreover, three areas cut across all Musika’s investment areas and operations: Women in Agriculture, Environmental Stewardship and improved Business environment.
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Result
The year 2021 began on the backdrop of the Covid-19 outbreak from the previous year, which subsequently led to key stakeholders including farmers and private sector adapting and adopting new strategies of doing business, considering the limited interactions among market players. Other challenges that affected Musikas operations was the unstable political economy due to the 2021 general elections, currency fluctuations, and effects of climate change on rural livelihoods. Overall, Musika recorded above 80% utilization of the market intervention investments and performance onto the markets. Results have been impressive with many of the targets having been met or superseded. Some of the notable results recorded so far are include 412, 000 rural smallholder farmers (including 108,320 women) being engaged in constructive and beneficial commercial relationships with agribusinesses across Zambia out of which 355,000 have increased their incomes. Additionally, USD $38 million of additional income has accrued to the smallholder economy since 2015 and USD 19 million has been leveraged in private capital from 72 private sector partners through investment in distribution and aggregation, infrastructure development and equipment purchase in 2021. More detailed results per results framework are to be found below: 1. To Increase the incomes of the rural poor through participation in pro poor rural market systems (Outcome objective) Indicator 1: Number of smallholder farming households realising a financial benefit through participation in improved agricultural market systems Baseline: 2016 167 278 Year Target Achieved 2018 180 000 187 630 2019 210 000 184 618 2020 250 000 272 446 2021 300 000 354782 2. To deepen, broaden and strengthen pro poor rural market systems (Outcome objective) Indicator 1: Number of farmers exhibiting positive changes in production and/or productivity Baseline: 2017 167 278 Year Target Achieved 2018 210 000 179 125 2019 260 000 154 147 2020 320 000 301 125 2021 380 000 392000 Indicator 2: Number of farmers adopting climate smart practices and technologies Baseline: 2017 100 000 Year Target Achieved 2018 150 000 104 556 2019 220 000 178 279 2020 300 000 272446 2021 400 000 380000 Indicator 3: Number of farmers accessing improved markets, information, and technology Baseline: 2017 240 785 Year Target Achieved 2018 300 000 271 161 2019 350 000 358 482 2020 400 000 358482 2021 450 000 412 537 3. To facilitate private investment in pro-poor rural market systems-Business and Finance (Output objective) Indicator 1: Number of SME agribusinesses exhibiting improved management practices Baseline: N/A Year Target Achieved 2018 100 149 2019 300 407 2020 400 531 2021 450 539 Indicator 2: Number of additional market access points provided by SME agribusinesses Baseline: N/A Year Target Achieved 2018 100 24 2019 300 115 2020 500 357 2021 700 572 Indicator 3: Number of SME agribusinesses accessing commercial finance Baseline: N/A Year Target Achieved 2018 50 10 2019 100 86 2020 200 189 2021 300 205 Indicator 4: Number of partner firms offering digital solutions to the lower end of the agricultural market Baseline: 2017 2 Year Target Achieved 2018 4 5 2019 6 6 2020 8 11 2021 10 11 Indicator 5: Number of partner firms offering financial products and services to the rural poor and SME agribusinesses Baseline: 2017 5 Year Target Achieved 2018 7 11 2019 9 16 2020 12 17 2021 15 17 Indicator 6: Number of partners offering structured trade opportunities to the lower end of the agricultural market Baseline: 2017 1 Year Target Achieved 2018 4 5 2019 9 8 2020 9 9 2021 11 10 4. To facilitate private investment in pro-poor rural market systems-Environmental Markets (Output objective) Indicator 1: Number of partner firms offering environmental market opportunities to the rural poor baseline: 2017 12 Year Target Achieved 2018 14 23 2019 17 27 2020 21 28 2021 25 31 Indicator 2: Number of additional commercial points of access to environmental markets Baseline: 2017 240 Year Target Achieved 2018 300 925 2019 290 1619 2020 320 1962 2021 350 2193 5. To facilitate private investment in pro-poor rural market systems-Agricultural Technology (Output objective) Indicator 1: Number of partner firms offering agricultural technologies to the rural poor Baseline: 2017 5 Year Target Achieved 2018 7 11 2019 9 16 2020 12 19 2021 15 24 Indicator 2: Number of additional commercial points of access to agricultural technologies Baseline: 2017 15 Year Target Achieved 2018 40 95 2019 100 615 2020 150 641 2021 200 980 6. To facilitate private investment in pro-poor rural market systems-Agricultural Diversification (Output objective) Indicator 1: Number of partner firms offering agricultural diversification opportunities to the rural poor Baseline: 2017 29 Year Target Achieved 2018 32 39 2019 38 55 2020 45 67 2021 50 76 Indicator 2: Number of additional commercial points of access to agricultural diversification opportunities Baseline: 2017 272 Year Target Achieved 2018 300 558 2019 350 620 2020 400 949 2021 500 1579 7. To facilitate private investment in pro-poor rural market systems-Crosscutting issues (Output objective) Indicator 1: Number of partner firms integrating gender into business models related to the engagement of the rural poor Baseline: 2017 6 Year Target Achieved 2018 8 20 2019 11 31 2020 15 38 2021 20 20 Indicator 2: Number of partner firms integrating environment stewardship into business models related to the engagement of the rural poor Baseline: 2017 7 Year Target Achieved 2018 9 8 2019 11 13 2020 15 17 2021 20 18
The overall goal of Musika's operations is to increase the incomes of the rural poor through participation in pro-poor rural market systems. Musika focuses on improving the competitiveness and inclusiveness of key agricultural markets in which large numbers of smallholders and small businesses operate. This is closely aligned with the Making Markets Work For the Poor (M4P) approach that seeks to fundamentally change the way markets work to engage with and benefit the poor and relatively marginalized groups. The approach focuses on analyzing and addressing underlying causes that prevent market systems from working for the benefit of poor people. Instead of becoming a market actor on its own Musika stimulates and supports the private sector to make investments in markets that are important for smallholders in Zambia. Musikas objective is to contribute to and influence the development of the agricultural industry through supporting specific market development interventions designed to stimulate improved commercial relationships, and to demonstrate the benefits of investment in those relationships to stimulate further investments and policy change.
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