AFFM’s $2 Million Fertilizer Financing Project in Uganda

The Africa Fertilizer Financing Mechanism (AFFM), under the African Development Bank Group, has unveiled a fertilizer financing project in Uganda, aiming to bolster fertilizer access for smallholder farmers. The initiative features a $2 million partial trade credit guarantee, facilitating the delivery of 60,000 tons of fertilizer to farmers across the country through local suppliers and distributors.

This initiative supports Africa’s commitment to tripling fertilizer production and distribution by 2034, as outlined in the Nairobi Declaration’s 10-year action plan. The AFFM aims to bolster the production, procurement, and distribution of fertilizers and soil health interventions across the continent.

Key Insights:

- Trade Credit Support: The $2 million guarantee aims to de-risk financing for fertilizer suppliers and distributors, enabling smoother credit access.
- Infrastructure Financing: The AFFM is channeling funds into logistics and distribution systems to enhance fertilizer availability.
- Innovation & Research: A multi-source soil health fund is set to fuel advancements in fertilizer technology, research, and capacity building.
- Local Production Incentives: African governments are stepping up support for local fertilizer manufacturing, offering financial incentives to tap into available raw materials.

This project is a prime example of how targeted financing can unlock growth in the agricultural sector. As Africa’s commitment to food security and sustainable farming gains momentum, market participants can expect increased opportunities across the fertilizer supply chain.