Norway’s agency to boost fertilizer supply to 850,000 African smallholder farmers
The African Fertilizer Financing Mechanism (AFFM) has received a $10.15 million financing from the Norwegian Agency for Development Cooperation (NORAD) destined to support agricultural projects for small scale farmers in Kenya, Mozambique and Uganda.
NORAD’s contribution will enable the AFFM to provide credit guarantees for up to 36 months in the three countries, with the expected leverage of at least ten times the credit guarantee amount, enabling access to at least 85,000 MT of fertilizer for 850,000 smallholder farmers. The funds will buttress the African Emergency Food Production Facility, the African Development Bank Group’s (ADF) rapid response initiative for addressing Africa’s current food crisis, which has been exacerbated by climate change, conflicts, pests and disease.
The AFFM’s role is to strategize on innovative financial solutions to foster access to quality and affordable fertilizers in Africa. “This funding will allow the Africa Fertilizer Financing Mechanism to provide financing and credit guarantees for the large-scale supply of fertilizer to suppliers, to enable access to fertilizer on credit to Agro-dealers, and contribute to bridge the supply gap of fertilizer in sub-Saharan Africa,” said Marie-Claire Kalihangabo, AFFM Coordinator.
NORAD’s financial support comes as the ADF is hosting the African Food Summit in Dakar this week, which will be held under the theme: “Feed Africa: Food Sovereignty and Resilience“. The summit will bring together stakeholders from across Africa and the world who will explore ways to meet the escalating challenges of food security on the continent. The event will also include discussions on the impact of rising fertilizer prices on African smallholder farmers.