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This article explores the lessons from an innovative government-private sector-NGO `partnership' in cashew nut processing in Nampula province, Mozambique. The project was designed to expand rural employment by setting up cashew processing `satellites' around existing factories, which would do the labour intensive part of primary processing and leave the grading and packing to the factory. This article examines the trajectory of the project and draws out key lessons for NGO interventions in support of small enterprises.