The Board of Directors of the African Development Bank Group has announced that they have approved a project to provide 60,000 metric tons of fertilizer to 400,000 smallholder farmers in Uganda.
In a press statement on Thursday, the directors said that under the Fertilizer Financing for Sustainable Agriculture Management project, the Africa Fertilizer Financing mechanism will provide $2 million (Ush7.5 billion) in partial trade credit guarantees and a grant of $877,842 (Ush3.3 billion) to the African fertilizer and Agribusiness Partnership.
The African Fertilizer and Agribusiness Partnership is a non-profit social enterprise that collaborates with public and private sector partners to develop and strengthen input value-chains and, in particular, deepen and broaden fertilizer markets across Africa.
The AfDB board of directors explained that for over three years, the project will support two wholesalers to sell fertilizer with a value of up to 15 times the value of the $2 million partial trade credit guarantee. It will also link wholesalers to around 25 hub agro-dealers and 125 retail agro-dealers who will on-sell the fertilizer to farmers.
They anticipate that the credit facility will reduce the risks associated with suppliers lending fertilizers to wholesalers on credit.
The project is expected to boost yields and will also provide training to 3.4 per cent targeted farmers—40 per cent of them women— on using improved seeds, balancing crop nutrition and best farming practices.
“In Uganda, the fertilizer consumption is about 2.5 kg/ha. The project will help to make fertilizer more accessible and appropriately used by farmers, which would in turn boost agricultural productivity and help to improve food security in Uganda,” said Ms Marie Claire Kalihangabo, Africa Fertilizer Financing Mechanism Coordinator.
She said the project will advance the Bank’s Feed Africa Strategy by increasing food productivity and security.
Source: The East African
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