This thesis investigates smallholder agricultural development in the district of Ribáuè, Mozambique. The thesis is guided by an analytical framework based on Friedmann’s concepts of territory and function. From this, one can tell that most development initiatives have followed functional principles which often fail to address rural development. The objective was, as such, to try to see how smallholders are affected by territorial and functional development principles and how meeting points between the two concepts could be established to promote empowering of agricultural smallholders. A field study was conducted in order to collect data through a multitude of semi-structured interviews, participation and observational studies. Most time was spent in the district of Ribáuè but visits were paid to the city of Nampula and Maputo. The result shows that there is a considerable degree of relativity concerning development initiatives aimed at rural areas. A particular initiative may, from the central level, be perceived as decentralizing and supporting of the rural community. But many initiatives end up concentrated around urban or semi-urban centers of the province or district. Thus, many remote areas are still excluded. Yet, there are ways to strengthen and empower local communities from a more bottom-up approach. Farmer associations, for instance, have the potential of empowering farmers in many ways beyond the financial aspect. The results also highlight the difficulties of prioritizing initiatives when on a strained budget in a society where most areas are in need of support.