In order to boost fertilizer value chain in Nigeria and Tanzania, the African Development Bank (AfDB) and African Fertilizer and Agribusiness Partnership (AFAP), have both inked a deal valued at $5.4 million.
The deal is poised to benefit subsistence farmers from both countries, as they seek to double their farm yields. As a result of the deal, small scale farmers in Nigeria and Tanzania will be able to get fertilizers to increase their farm yields without having to pay immediately for the product.
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Speaking on the deal, AfDB’s Vice President for Agriculture, Human and Social Development, Dr Jennifer Blanke said it was a means of encouraging the 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.”
According to Blanke, 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.
Beneficiaries: The project, which is expected to last for more than two years, according to the AfDB, is targeted at 10 importers, 5 manufacturers, 37 hub agro-dealers, 520 retail agro-dealers, and 700,000 smallholder farmers.
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What you should know: Africa is one of the most important fertilizer markets globally, with the fastest-growing population on earth. All thanks to the continent’s favourable location and abundant access to feedstock.
Africa has the potential to become a major fertilizer market. The region is endowed with mineral reserves of the three major plant macronutrients – nitrogen (N), phosphate (P) and potash (K). Moreover, the continent is subject to rapid population and income growth and changing food consumption habits.