Piri Piri Elefante Mocambique Note: This project has been cancelled, because of the lack of progress.The applicant African Spices Ltd. (ASL) wants to cultivate, process and export chillies in Mozambique, using a similar set-up as they currently operate mainly in Zambia. ASL will establish a joint venture with local partner Agro Pecauria de Bolage and third partner Annona Sustainable Investments B.V..In Zambia the project's focus is on combining conservation with sustainable economic development. The chillies are used as a natural deterrent to elephants, but are at the same time functioning as a cash crop. This concept is known by the name Elephant Pepper.The project will consist of a 30 ha own pepper plantation plus mashing facilities at the Core Farm (CFO), 3 commercial farmers with their own chillies and mashing facilities, as well as 1,500 small farmers growing chillies. Six hundred of these are supported by the CFO, the other 900 small farmers are supported by one of the three commercial farmers.ASL produces, as one of only seven approved suppliers globally Tabasco chilli mash for McIlhenny Company. All other suppliers of Tabasco chilli mash are based in Latin America. Circumstances in Mozambique are favourable compared to Zambia, because transport cost will be much lower and yields are expected to be higher as a result of more suitable climatic conditions. In Zambia the focus will shift from mash to dried product only. Eventually the mash will all be produced in Mozambique.Corporate Social Responsibility (CSR)PPEM will implement the same CSR policy as is currently used by ASL in Zambia. Initiatives will include:1.	encouraging staff to join the workers union and select a representative;2.	bonus systems on performance for pickers;3.	any person over the legal working age limit will be offered the opportunity to pick chillies, including older people;4.	baby care is offered on the farm, including a childcare worker;5.	health care representative will visit the farm on a monthly basis for health checks ("Chilli Clinic");6.	HIV awareness initiatives will be implemented.Furthermore, ASL, through PPEM, will stay true to its initial inspiration for growing chillies and will contribute 10% of profits from the Mozambican project for support to the Elephant Development Trust (EDPT). In the early years that the project will not yet make profits, 10% of revenues will be donated.Impact•	Employment and working conditionsBy the end of the project the joint venture will employ 223 people, 212 of which will be basic-level jobs, 11 medium-/ high-level. At the moment the Bolage Farm employs about 16 people, the remaining core team. Without the project, these people would probably lose their job soon.Indirectly, the project will create 21 medium-/high-level jobs at the commercial farms, as well as 1,500 small farmers.Two hundred picking jobs will be seasonal, for 8 months per year.Two years after the end of the project direct employment will be 446. Of these 424 will be basic-level employees, mainly for picking of the chillies. This includes 400 seasonal jobs, for 8 months per year. The other 22 jobs will be medium- or high-level.The joint venture will be minimum wage as a base salary, with a bonus structure for the pickers who work well. Fringe benefits will include a monthly visit by a health care representative ("Chilli Clinic"), HIV awareness initiatives will be implemented, safe working conditions practices, understanding and tolerance of socio-cultural norms.•	Innovation / Transfer of knowledgeThe project will bring knowledge on the production of chilli mash for the export market to Mozambique.•	Chain effectsThe project will contract 3 commercial growers as well as 1,500 small-scale farmers. At each commercial farm they expect to create 7 jobs. The joint venture will provide these outgrowers with training and seeds and will buy back 100% of the chillies. The joint venture also will also provide the small farmers with irrigation, which is either paid for by donors or the farmer can pay for it with chillies. In the latter case he can pay it off in about 2 year, while still making money on the chillies.•	EnvironmentThe impact on the environment will be neutral. Where possible ASL promotes organic environmentally friendly farming practice. Chillies are not a land or water intensive crop, but a labour intensive crop. The CFO is based on existing farm land.•	Position of womenPPEM will promote gender equality as part of their CSR policy. They will provide baby care on the farm, to help with the care of children while mothers are in the fields working. This includes a childcare worker to play with and watch the children. Of the pickers, 90% will be women. The joint venture promotes women in management positions due to their reliability and general work attitude. Setting up a 30 ha Core Farming Operation for the cultivation and processing of Tabasco chillies, as well as an outgrowers scheme including three commercial farmers and 1,500 small farmers, for the export of almost 800 tons chilli mash.