The Africa fertilizer financing mechanism will provide a US$2 million partial trade credit guarantee and a US$219 000 grant funding to Nairobi-based Apollo Agriculture Ltd to support the distribution of over 7000 t of fertilizers to some 100 000 smallholder farmers in Kenya.
Between 2024 and 2026, the project will support Apollo Agriculture Limited to sell fertilizer through a part of its network, covering around 150 retail agro-dealers and 800 village-based agents using digital platforms.
Most smallholder farmers in Kenya buy fertilizers through informal credit, microfinance institutions and commercial banks, but challenges remain for farmers to access fertilizer financing as some cannot provide tangible collateral. These new funds will be channelled through the Fertilizer Financing for Sustainable Agriculture Management project.
“The Fertilizer Financing for Sustainable Agriculture Management project will improve farming productivity by facilitating access and use of fertilizer for smallholder farmers at the last mile, with 50% of women among the beneficiaries,” said Marie Claire Kalihangabo, Africa Fertilizer Financing Mechanism Coordinator.
The fertilizer market’s leading players include importers, blenders, and the Kenyan government, which runs a fertilizer subsidy programme. In 2021, Kenya imported 758 000 tonnes of chemical fertilizers. Kenyan farmers pay US$35 for a 50 kg fertilizer bag.
Benjamin Njenga, co-founder of Apollo Agriculture Limited, said: “Apollo Agriculture is pleased to establish a partnership with the Africa Fertilizer Financing Mechanism to make essential farming inputs accessible and affordable to small-scale farmers, thereby boosting farmer income and Kenya's food security.”
Read the article online at: https://www.worldfertilizer.com/project-news/21112023/africa-fertilizer-financing-mechanism-commits-more-than-us2-million-to-improve-farmers-access-to-fertilizers/
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