AfDB approves fertiliser project for smallscale Uganda farmers

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 fertiliser 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 Fertiliser 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 Fertiliser and Agribusiness Partnership.

The African Fertiliser 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 fertiliser markets across Africa. 

The AfDB board of directors explained that for over three years, the project will support two wholesalers to sell fertiliser 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 sell-on the fertiliser to farmers.

They anticipate that the credit facility will reduce the risks associated with suppliers lending fertilisers 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 fertiliser consumption is about 2.5 kg/ha. The project will help to make fertiliser 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 Fertiliser Financing Mechanism Coordinator.   She said the project will advance the Bank’s Feed Africa Strategy by increasing food productivity and security.

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