The Board of Directors of the African Development Bank (AfDB), through the Africa Fertilizer Financing Facility, has granted a guarantee of 2 million dollars and a grant of 877,900 dollars to improve access to fertilizers for Mozambican farmers.
As part of the Bank’s Country Strategy for Mozambique 2023-28 and the Africa Technology Agriculture Transformation Program, the initiative, published this Thursday (12) on the AfDB website, aims to stimulate private sector fertilizer financing in Mozambique, thus improving productivity and food security.
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The project, according to the AfDB, will support the distribution of 60,000 tons of fertilizer to 300,000 small farmers in the provinces of Tete, Manica, Sofala and Gaza.
According to the institution, Mozambique is therefore a growing market and, with the right approach, it is possible to develop the fertilizer market in the medium and long term.
“Through this credit guarantee, called the Fertilizer Financing Project for Sustainable Agricultural Management, it will be possible to improve agricultural productivity by facilitating access to and use of fertilizers by small farmers. In addition, the program provides training for 5% of the target farmers on the use of improved seeds, balanced nutrition and crop protection packages and best agricultural practices, with 40% of the beneficiaries being women,” says the ADB note.
In addition, the coordinator of the Fertilizer Financing Facility in Africa, Marie Claire Kalihangabo, said that through the fertilizer credit line, the aim is to reduce the risks inherent in suppliers lending fertilizers on credit to wholesalers, which can make it difficult for farms to obtain good fertilizers. “As well as making fertilizers available through access to finance, the project will also support improved soil health and increased food production through the restoration and integrated reinforcement of soil fertility, capacity building and community development activities,” he said.
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The project will run for three years and provides support for two wholesalers to sell fertilizers worth up to 15 times more than the fertilizer’s partial commercial credit guarantee. In addition, the program will also enable wholesalers to link up with around 30 central agro-dealers and 125 retail agro-dealers who will resell the fertilizers to farmers.
