In the framework of the Annual Meetings of the African Development Bank in Busan, Korea, the Fund for African Private Sector Assistance (FAPA) donors and the African Fertilizer and Agribusiness Partnership (AFAP) signed an agreement in support for the local supply and use of fertilizers by small farmers in Africa.
This USD 1 million FAPA grant will help increase accessibility, access, and incentives for fertilizer use among smallholder farmers in Africa and will expand the supply and distribution of fertilizers through investment.
It also seeks to create more than 1,000 jobs for women and young people. The AFAP, the beneficiary, will be the equivalent of the FAPA subsidy.
The agreement was signed Wednesday by Jennifer Blanke, African Development Bank’s Vice-President for Agriculture, Human and Social Development, and Jason Scarpone, CEO of the African Fertilizer and Agribusiness Partnership.
This project fits perfectly with the African Africa Development Strategy, which will promote greater local fertilizer supply for farmers, increasing productivity, which is essential for the transformation of the value chain, said Blanke.
This initiative complements the Bank’s strategy to transform agricultural value chains in member countries of the region and strengthen private companies. It also helps to improve access to finance for joint ventures and joint ventures in the agricultural sector.
It will strengthen distribution through agricultural input systems with networks of input distributors in the selected countries: Côte d’Ivoire, Ghana, Nigeria, Mozambique, and Tanzania.
Agriculture is one of the five priority areas of the Bank: in sub-Saharan Africa, 60 percent of the population lives in rural areas, while the share of agriculture in GDP is less than 20 percent, said Soichiro Imaeda, Parliamentary Vice-Minister for Finance in Japan, one of the donors to FAPA.
“Improving agricultural productivity is an urgent issue for achieving sustainable economic growth in Africa, and we hope that this project will be used effectively and that farmers’ access to fertilizers will increase and agricultural productivity will increase in all five countries including Côte d’Ivoire, Ghana, Mozambique, Nigeria, and Tanzania.”
“Today’s grant agreement is not only about improving the productivity of small farmers in Africa, it is also promoting local sourcing and fertilizer use in Africa, and we are going to continue, through FAPA, to support projects for agricultural financing in Africa, “Olivier Eweck, Director of the Syndication, Co-financing and Technical Solutions Department at the Bank, and Chair of the FAPA Technical Committee, said on Wednesday.