The Board of Directors of the African Development Bank (AfDB/AfDB) has approved an $11.7 million budget grant to the African Fertilizer Finance Mechanism (AFFM) for its 2023 operations.
The approval, on May 16, increases the fund allocated to the program to a total of $16.4 million, with $4.7 million of the money carried over from the previous year, writes a source verified by MZNews.
The AFFM will facilitate smallholder farmers' access to inputs and extension services through credit guarantee projects and capacity building for farmers and input distributors.
He said he would continue to work with the International Fertilizer Development Center (IFDC) and the Alliance for a Green Revolution in Africa (AGRA) on initiatives to improve fertilizer production, trade and use, launched in 2021.
In addition, the program is to conduct a detailed analysis of fertilizer policy in at least ten African countries, which will map the current situation, identify gaps, and prepare an action plan.
The goal is to support policy directions that address the identified deficiencies.
The AfDB also approved the plan of activities for this year, which includes strengthening the fertilizer sector through access to finance, supporting the development of sustainable policy reforms to improve fertilizer production, trade and use, and facilitating access to inputs and technical assistance for small farmers.
AFFM plans to continue implementing three trade credit guarantee projects worth $8.3 million in recipient countries, including Zimbabwe ($4.3 million), Ivory Coast ($2 million) and Ghana ($2 million).
Later this year the facility plans to implement $9.7 million in trade credit guarantee strategies in Tanzania, Uganda, Mozambique, and Kenya.
The African Fertilizer Facility is a special African Union fund launched in 2006 that aims to improve agricultural productivity through the provision of fertilizers. It is hosted and managed by the African Development Bank. The AFFM has a strategic plan for the period 2022 - 2028.