HomeBusiness DigestAfDB, Afap sign US$5,4m agreements

AfDB, Afap sign US$5,4m agreements

The African Development Bank and the African Fertiliser and Agribusiness Partnership (Afap) have signed two grant agreements to implement trade credit guarantees worth US$5,4 million to support fertiliser value chains in Nigeria and Tanzania, potentially benefitting hundreds of thousands of smallholder farmers.

The organisations held a signing ceremony at the African Green Revolution Forum in Accra, Ghana on September 5, 2019.
Jennifer Blanke, African Development Bank vice-president for Agriculture, Human and Social Development said the agreements would provide the inputs needed for
Africa to have “the productivity that we hope for.”

“We are just thrilled to be getting together with our partners in order to expand the efforts to make sure that we are financing the development of
manufacturing and blending of fertiliser,” Blanke said. “This is an African effort, led by Africans, for Africa,” she added.

The grants are designed by the bank’s Africa Fertiliser Financing Mechanism (AFFM) to provide sustainable financing solutions to boost the fertiliser value
chain in Africa.

African Fertiliser and Agribusiness Partnership CE Jason Scarpone signed the agreements on behalf of the continental body, emphasizing the importance of value
chain financing — bringing fertiliser financing from manufacturer, to distributor, to retailer to farmer.

“Few succeed in doing it. This project will be successful,” Scarpone told reporters.

The two deals are the first agreements signed by AFFM, which is hosted by the African Development Bank, since it was became fully functional last year;they pave the way for the first implementation of trade credit guarantee projects for fertiliser financing led by AFFM in Nigeria and Tanzania.

The African Fertiliser and Agribusiness Partnership will be the implementing partner operating in the two countries on behalf of the Africa Fertiliser
Financing Mechanism. The Partnership has substantial experience in supporting the agricultural value chain across the continent.

Scheduled for implementation over a two-year period, the projects will lead to the enhancement of fertiliser value chains in the two countries and will target
10 importers, five blenders or manufacturers, and 37 hub agro-dealers as direct beneficiaries, 520 retail agro-dealers as indirect beneficiaries and 700 000
smallholder farmers as final beneficiaries.

By supporting the fertiliser value chain in the two countries, the projects will go a long way to making fertiliser available to more farmers, a key objective
of the Bank’s Feed Africa Strategy.

“We have expected results that are realistic. We are here to make sure this happens,” AFFM coordinator Marie Claire Kalihangabo said at the signing ceremony. —


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