In a significant development aimed at tackling the ongoing humanitarian crisis in Mozambique’s Cabo Delgado province, USAID’s Bureau of Humanitarian Assistance has awarded a three-year project designed to support Internally Displaced Persons and returnees to Palladium.

The project will use agricultural development, private sector partnerships, and the creation of sustainable livelihoods to restore economic stability.

For over seven years, Cabo Delgado, Mozambique’s northernmost province, has been engulfed in violent conflict. Attacks by non-state armed groups and clashes with security forces have led to mass displacement, with over one million people forced to flee their homes. As the violence persists, many of these displaced populations continue to face dire conditions, exacerbated by the destruction of local farms and businesses, which has plunged the region into deep food insecurity.

The humanitarian crisis in Cabo Delgado is not isolated. It forms part of a larger, global issue of displacement, with the United Nations High Commissioner for Refugees reporting over 100 million forcibly displaced people worldwide in 2022 – a record high.

Among them, 60 million are internally displaced.

Building Resilience Through Agriculture

In response to this crisis, the project will take a market-based approach to help displaced populations in Cabo Delgado regain their livelihoods. “Our goal is to help people break free from the cycle of poverty through agricultural development,” explains Palladium’s Eduardo Tugendhat. The project will connect IDPs and returnees to local seed suppliers and provide access to high-value external markets where they can sell their crops, fostering long-term economic growth.

By focusing on cash crops like cashews and staple crops such as groundnuts, maize, and beans, Palladium’s team aims to increase both household income and food security. Central to the project’s approach is its collaboration with private sector partners. “Our efforts will be driven by a commitment to cultivating local private-sector investments that engage surrounding communities,” Tugendhat adds.

“We will work closely with businesses to increase the production of nutritious crops and build resilience against climate change, all while introducing new sources of income for households.”

A New Approach to Humanitarian Aid

What sets this project apart is its integration of emergency humanitarian assistance with long-term development goals. Traditionally, humanitarian interventions in conflict zones like Cabo Delgado focus on short-term relief, providing essential supplies and services to those in immediate need. But as conflicts drag on, it’s becoming clear that tackling the underlying economic vulnerabilities contributing to these crisis could provide a solution.

“This work is not just about providing immediate emergency assistance; it’s about creating lasting economic growth and security for the region,” explains Tugendhat. For the first time, USAID’s Bureau of Humanitarian Assistance is aiming to build a bridge between short-term humanitarian aid and long-term development programming.

By investing in agricultural infrastructure, local businesses, and market access, this project has the potential to create a sustainable economic foundation that can support communities long after the immediate crisis has passed.

The situation in Cabo Delgado is reflective of broader trends in conflict-affected regions worldwide. As violent conflict and displacement increase, development actors are looking for more sustainable solutions that go beyond emergency assistance. Palladium’s approach in Mozambique could serve as a model for similar interventions in other conflict zones. “If we are successful, this strategy could be applied to other contexts with protracted conflict, improving livelihoods for those who need it most,” notes Tugendhat.

This project also marks a new chapter for Palladium, as it is the first award from USAID’s Bureau of Humanitarian Assistance.

A Path to Lasting Change

Looking ahead, Tugendhat explains that the team’s strategy will leverage their expertise in forming shared-value partnerships with the private sector, particularly in conflict-affected and lean markets. “Our success in similar projects, such as the Agricultural Diversification and Growth Poles initiatives in Malawi, underscores our ability create meaningful change even in the most challenging environments.”

As the global crisis of displacement continues to unfold, innovative projects like this one offer a pathway to both immediate relief and long-term recovery.

By focusing on the underlying economic challenges that keep communities in poverty, this latest project in Cabo Delgado could provide a sustainable solution that empowers displaced populations to rebuild their lives and regain their dignity, offering hope for a brighter future in a region that has long been defined by hardship and instability.

For more information, contact info@thepalladiumgroup.com.