Home » African Fertilizer Development Financing Facility receives $7.3 million to boost agricultural productivity and smallholder farmer incomes

African Fertilizer Development Financing Facility receives $7.3 million to boost agricultural productivity and smallholder farmer incomes

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African Fertilizer Development Financing Facility receives $7.3 million to boost agricultural productivity and smallholder farmer incomes

* This funding targets increasing food production and income for 800,000 smallholder farmers.

Workers carrying bags of fertilizer to a warehouse in Njombe, Tanzania.

Abidjan, Ivory Coast, April 18, 2024 -/African Media Agency (AMA)/-Global Affairs Canada(link is external) has provided $7.3 million in funding to the African Fertilizer Development Financing Mechanism ( MAFDE) to improve sustainable agricultural productivity and livelihoods of smallholder farmers across Africa, particularly women and youth.

This financing will help the facility replicate its credit guarantee programs, allowing fertilizer importers and aggregators to procure the product on credit. It will also boost efforts to improve soil health and provide technical assistance to farmers.

Signed on March 25, 2024, the financing agreement specifically earmarks CAD 10 million for the mechanism’s “Fostering Africa’s Agricultural Productivity through Financing the Fertilizer Value Chain” (FOSTER) program. Administered by the African Development Bank Group, the facility provides innovative financing to accelerate fertilizer use in Africa and improve agricultural productivity across the Bank’s regional member countries.

“We thank Global Affairs Canada for its support to advance the implementation of the African Fertilizer Development Financing Mechanism Strategic Plan 2022-2028, which aims to expand access to financing through capital investments and reforms policies, among other priorities, that benefit Africa’s smallholder farmers,” said Beth Dunford, Vice President for Agriculture, Human and Social Development at the Bank.

Fertilizers are essential for food production, but they are largely underutilized in sub-Saharan Africa’s agricultural sector due to limited financial resources and lack of technical know-how among farmers.

The FOSTER program targets 800,000 smallholder farmers, with 40% of the intended beneficiaries being women and 10% youth. It aims to provide access to and improve their use of 80,000 tonnes of organic and inorganic fertilizers, which should increase yields by 30%.

Ahmed Hussen, Canada’s Minister of International Development, said: “Canada is proud to support resilient, climate-smart agriculture and adaptable food production systems in Africa. We remain committed to promoting inclusive and green growth in partnership with the African Development Bank, notably through our contribution to the African Fertilizer Development Finance Facility. »

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Under the FOSTER programme, the facility will provide credit guarantee facilities to the input supply chain in eight African countries. The program will also facilitate the formulation of fertilizer policies and regulatory frameworks to promote sustainable and gender-responsive land management practices.

Marie Claire Kalihangabo, coordinator of the mechanism, welcomed Global Affairs Canada as a new member and expressed her readiness to collaborate with Canada to effectively fulfill the mandate of the AFFM.

The FOSTER program aligns with the United Nations’ Agenda 2030 and Sustainable Development Goals, (link is external) African Union Agenda 2063 and the Malabo Declaration(link is external). The program also resonates with Canada’s feminist international assistance policy and its efforts towards gender equality and women’s empowerment. It also complements the Canadian “Fertilizers and Soil Health in Africa” initiative, which aims to strengthen food security and sustainability.

This initiative aims to transform African agriculture into a productive, competitive and sustainable sector through the national pacts for the supply of food and agricultural products which were developed during the Dakar 2 Summit on Food in Africa which was held in January 2023 and which was co-organized by the African Development Bank.

Canada’s funding announcement comes just weeks before the African Union Commission’s Africa Fertilizer and Soil Health Summit, scheduled for May 7-9, 2024 in Nairobi.

Distributed by African Media Agency (AMA) for the African Development Bank.

The post African Fertilizer Development Financing Facility receives $7.3 million to boost agricultural productivity and smallholder farmers’ incomes appeared first on African Media Agency.

Source : African Media Agency (AMA)

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