News in brief:
– A $2 million fertiliser financing project will provide fertiliser and training to 300,000 smallholder farmers in Mozambique over the next three years.
– This is expected to increase farmers’ productivity and wealth, benefiting rural households who are the backbone of the country’s agriculture.
About 300,000 smallholder farmers in Mozambique will benefit from a $2 million fertiliser financing project over the next three years, an African Development Bank (AfDB) press release said.
The financing initiative is provided by the Africa Fertilizer Financing Mechanism and the African Fertilizer and Agribusiness Partnership (AFAP).
AFAP will use the funding, a partial trade credit guarantee, to provide guarantees five fertiliser suppliers to deliver 60,000 tons of fertiliser to the farmers through 30 hub dealers working with 125 retailers. The aim is to encourage the suppliers to ship the fertilisers on credit since the risk they face has been reduced.
In addition, because the country’s southern province, which commence planting first due to early rains in September, has poor soil that is prone to droughts and floods, there is also a $877,980 grant to train farmers in soil improvement and resillience activities.
The project was launched in June 2024 as the outcome of the African Union’s African Fertilizer and Soil Health Summit, during which several African heads of state agreed to the commencement of Africa Fertilizer Financing Mechanism.
Besides the impact that increased access to fertilisers will have on farmers in Mozambican provinces like Tete, Manica, Nampula, Zambezia, Sofala and Gaza, there are other add-on benefits, especially considering the dispensation model that the AFAP has created.
With more than 125 retailers (which are likely SMEs), there is an opportunity for businesses to increase their revenue and customer base as the farmers they serve during the three years could turn into lifetime consumers.
Also, farmers are likely to increase their productivity and wealth, thereby, increasing the income of rural households who are most involved in crop farming and makeup 95% of the country’s agricultural production.
