In collaboration with the government of Mozambique, we randomly selected 50% of a sample of small-scale maize farmers to receive voucher coupon that entitled them to receive a 73% subsidy on a package comprised of 100 kilograms of fertilizer and 12.5 kilograms of improved maize seeds. Three treatment groups received different combinations of interventions, and the comparison group did not receive an intervention.
- Treatment group 1, farmers were offered a savings account with standard BOM interest rate.
- Treatment group 2, farmers offered “matched savings” accounts, where farmer received matched funds equal to 50 percent of his or her average savings balance (up to 3,000 MZN , or US$112 ) during a defined match period. (The match rate is the percentage of the average balance in the account that is contributed by the project at the end of the match period, not an annual percentage rate.)
- Treatment group 3, farmers were offered a savings match with a group incentive, where the match rate rises or falls in accordance to the average account balance of the entire group.