AfDB Splashes The Cash Once Again – And This Time, It’s Burying USD 5.4 Mn In The “Dirt”
The African Development Bank (AfDB) and African Fertilizer and Agribusiness Partnership (AFAP), have both put pen to paper on a USD 5.4 Mn deal that is designed to boost the fertilizer value chain in both Nigeria and Tanzania.
The new agreement is expected to benefit subsistence farmers from both countries, as they seek to double their farm yields. By virtue of the new deal, farmers who practice agriculture on a relatively small scale in both Tanzania and Nigeria, and who are unable to afford fertilizers, are now enabled to get fertilizers to increase their farm yields without having to pay upfront for the product.
Speaking on the development, AfDB’s Vice President for Agriculture, Human and Social Development, Dr Jennifer Blanke, revealed that the deal was also aimed at encouraging local manufacturers of fertilizers.
“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. This is an African effort, led by Africans, for Africa.”
Blanke also said the deal was designed by the bank’s Africa Fertiliser Financing Mechanism (AFFM) to provide sustainable financing solutions to boost the fertilizer value-chain in Africa.
According to the AfDB, the project, which is expected to last for more than two years, has been set up to benefit 10 importers, 5 manufacturers, 37 hub agro-dealers, 520 retail agro-dealers, and 700,000 smallholder farmers.
The African continent boasts one of the world’s most important markets for agricultural inputs given the rising population which is outpacing population growth in every other part of the globe. Food production on the African continent is, thus, important. And inputs like fertilizers can be of great help.
Thanks to the continent’s favourable location and abundant access to feedstock, Africa also has the potential to become a major producer of fertilizer globally.
In between the immediate need of boosting local food production to cater to the rising population and meeting the global demand for fertilizers over the long haul, the rationale for the AfDB-AFAP partnership can be found.
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