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Africa Fertilizer Financing Mechanism to Boost Agricultural Growth

AgriTech Chemicals and Fertilizers

Business Honor
28 December, 2024

African heads of state commit to strengthening the Africa Fertilizer Financing Mechanism to boost agriculture and soil health.

During the Africa Fertilizer and Soil Health Summit in Nairobi, heads of states in Africa agreed on having the Africa Fertilizer Financing Mechanism AFFM fully operationalized for its purpose of increasing availability, encouraging soil health, and investments in technologies that are intended to increase agricultural production yield.

The commitment is part of the Nairobi Declaration, which calls for the creation of a soil health fund under the AFFM’s umbrella, hosted by the African Development Bank Group. The fund will focus on supporting research, innovation, capacity building, and startups that concentrate on fertilizer use and soil health. The plan also includes a 10-year Action Plan for Fertilizer and Soil Health, outlining strategies to improve agricultural productivity across Africa.

Speaking in this regard was Dr Beth Dunford, Vice President for Agriculture, Human and Social Development at the African Development Bank. She spoke to scaling up the Africa Fertilizer Financing Mechanism 2.0, to concentrate on increasing productivity, improvement of soil health, as well as resource mobilization from multilateral development banks, donors, and the private sector. It is de-risking farmer investments, as well as supporting policy reforms toward an efficient agricultural ecosystem.

Marie Claire Kalihangabo, AFFM Coordinator, pointed out that the mechanism is now ready to mobilize investments and provide innovative financing products in order to ensure timely access to organic and inorganic fertilizers for farmers across Africa.

It included also hosting a side event titled "Finance, Food and Fertilizer: How the Debt Crisis Affects Food and Farm Inputs Markets in Africa," jointly with Yara and Sustain Africa. In that session, speakers brought attention to fertilizer market disruptions arising from government subsidies, economic constraints, and the increasing import of food into the region.

This bold initiative is expected to significantly improve Africa's agricultural landscape, providing long-term solutions to food security and economic development.