The AfDB has approved a $11 million budget allocation to increase fertilizer finance for smallholder farmers.
The African Development Bank’s (AfDB’s) board of directors has approved a budgetary allocation of $11.7 million for the African Fertilizer Financing Mechanism’s (AFFM’s) 2023 operations, with the goal of enhancing fertilizer supply and production while facilitating smallholder farmers’ access to inputs and technical assistance.
The approval included $4.7 million that was carried over from the previous year to strengthen the fertilizer sector through access to finance, supporting the development of long-term policy reforms and $16.4 million that was extended to the facility to support its 2023 budget, according to a statement obtained from the AfDB.
In addition, three commercial credit guarantee projects totaling $8.3 million that will benefit Zimbabwe, Côte d’Ivoire, and Ghana will still be carried out.
The African Development Bank (AfDB) further stated that the projects would be completed to assist the second pillar of the bank’s African emergency food production facility, which was established to prevent an impending food crisis in Africa following Russia’s invasion of Ukraine.
In order to create the national food and agriculture pacts that the leaders of the continent submitted at the Feed Africa Summit in Dakar in January 2023, the statement said, “AFFM will actively work with African countries and other key stakeholders.”
Additionally, through loan guarantee projects and capacity building for farmers and input distributors, the AFFM would make it easier for smallholder farmers to acquire inputs and extension services.
The policy on fertilizer in at least ten African nations will also be thoroughly examined, with a map of the current status, gaps being identified, and an action plan being prepared. Supporting policy orientations that will solve the found flaws is the goal.
By providing the required funding to increase fertilizer use in Africa and hit the 50 kilos of nutrients per hectare target, the African Fertilizer Financing Mechanism seeks to increase agricultural production. It was founded by the African Union in Abuja in 2006, and the AfDB hosted and oversaw it.