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With increasing population and demand for food, reducing food loss and waste is one of the greatest challenges worldwide. Current estimates point to over 1 billion tons of food lost and wasted worldwide, though nearly 10 percent of the global population is suffering from undernourishment and food insecurity. In Mozambique, about one-quarter of the population suffers from undernourishment and food insecurity. Estimates from FAO point to postharvest losses of maize in Mozambique at about 3.69 to 7.92 percent; this is less than one-fifth of the on-farm losses reported by other authors. In this study, an Equilibrium Displacement model is used to assess the economy-wide impact of postharvest losses of maize at the farm level. The impact of a 3 percent postharvest loss is tested. Results suggest that even this very conservative percentage of postharvest losses has a direct annual net cost of around $USD 28 million for both farmers and consumers domestically. This is equivalent to over 1 percent of the national budget. It is also higher than the average cost of food aid programs received over the last three years. Therefore, reducing postharvest losses of maize along with other interventions is crucial to achieve sustainable development and economic growth. [ABSTRACT FROM AUTHOR]