Africa Fertilizer Financing Mechanism receives $7.3 million to boost agriculture and smallholder farmers’ income
Global Affairs Canada has allocated $7.3 million in funding to the Africa Fertilizer Financing Mechanism (AFFM) to enhance sustainable agricultural productivity and improve the livelihoods of smallholder farmers, particularly women and youth in Africa.
The funding will support the Mechanism in expanding its credit guarantee programs, allowing fertilizer importers and aggregators to access the product on credit. It will also contribute to initiatives aimed at enhancing soil health and providing technical assistance to farmers.
The agreement, signed on 25 March 2024, designates CAD$10 million specifically for the Mechanism’s ‘Fostering Africa’s agricultural productivity through fertilizer value chain financing’ (FOSTER) program. Managed by the African Development Bank Group, the Mechanism offers innovative financing to promote fertilizer use in Africa and enhance agricultural productivity in the Bank’s regional member countries.
Dr. Beth Dunford, the Bank’s Vice President for Agriculture, Human and Social Development, expressed gratitude to Global Affairs Canada for supporting the implementation of the Africa Fertilizer Financing Mechanism’s Strategic Plan 2022-2028. The plan focuses on expanding access to finance through capital investments and policy reforms, benefiting smallholder farmers in Africa.
Fertilizer plays a crucial role in food production, yet its utilization in sub-Saharan Africa’s agriculture sector is hindered by limited financing and technical knowledge among farmers.
The FOSTER program aims to reach 800,000 smallholder farmers, with 40% of beneficiaries being women and 10% youth. It seeks to provide access to and enhance the utilization of 80,000 tons of organic and inorganic fertilizer, resulting in a 30% increase in yields.
Canada’s Minister of International Development, Ahmed Hussen, emphasized Canada’s commitment to supporting resilient and climate-smart agriculture as well as adaptable food production systems in Africa. The partnership with the African Development Bank, particularly through the Africa Fertilizer Financing Mechanism, plays a crucial role in promoting inclusive and green growth. Under the FOSTER program, the Mechanism will provide credit guarantee facilities to the inputs supply chain in eight African countries. Additionally, the program will contribute to the formulation of fertilizer policies and regulatory frameworks that prioritize gender-sensitive and sustainable soil management practices.
Marie Claire Kalihangabo, Coordinator of the Mechanism, warmly welcomed Global Affairs Canada as a new member and expressed eagerness to collaborate effectively in fulfilling the AFFM’s mandate. The FOSTER program aligns with various global initiatives such as the United Nations’ 2030 Agenda, the Sustainable Development Goals, the African Union’s Agenda 2063, and the Malabo Declaration. It also resonates with Canada’s Feminist International Assistance Policy, highlighting its commitment to gender equality and women’s empowerment. Furthermore, the program complements Canada’s “Africa Fertilizer and Soil Health” initiative, which aims to enhance food security and sustainability.
This initiative seeks to transform African agriculture into a productive, competitive, and sustainable sector through the implementation of national Food and Agriculture Delivery Compacts. These compacts were developed during the Dakar 2 Food Summit in January 2023, which was co-organized by the African Development Bank. Canada’s funding announcement is timely, as it precedes the upcoming Africa Fertilizer and Soil Health Summit organized by the African Union Commission, scheduled for 7-9 May 2024 in Nairobi.
For more information about the Africa Fertilizer Financing Mechanism, please visit this link: (https://apo-opa.co/3W642uA). To learn more about Global Affairs Canada, please visit this link: (https://apo-opa.co/3UlInNr).
