$7.3 million allocated to Africa Fertilizer Financing Mechanism to enhance agricultural productivity and increase income for smallholder farmers

Global Affairs Canada has provided $7.3 million in funding to the Africa Fertilizer Financing Mechanism (AFFM) to enhance sustainable agricultural productivity and smallholder farmer livelihoods across Africa. The funding will support the Mechanism in replicating credit guarantee programs, enabling fertilizer importers and aggregators to access products on credit, as well as efforts to improve soil health and provide technical assistance to farmers.

The funding agreement, signed on 25 March 2024, earmarks CAD$10 million specifically for the Mechanism’s ‘Fostering Africa’s agricultural productivity through fertilizer value chain financing’ (FOSTER) program. This program, administered by the African Development Bank Group, aims to accelerate fertilizer use in Africa and improve agricultural productivity in the Bank’s regional member countries.

The FOSTER program targets 800,000 smallholder farmers, with 40% of beneficiaries expected to be women and 10% youth. It aims to provide access to and improve the utilization of 80,000 tons of organic and inorganic fertilizer, which is expected to increase yields by 30%.

Canada’s Minister of International Development, Ahmed Hussen, expressed pride in supporting resilient, climate-smart agriculture and adaptable food production systems in Africa. The funding announcement comes just weeks ahead of the African Union Commission’s Africa Fertilizer and Soil Health Summit scheduled for 7-9 May 2024 in Nairobi.

The initiative aligns with the United Nations’ 2030 Agenda, the Sustainable Development Goals, the African Union’s Agenda 2063, and the Malabo Declaration. It also resonates with Canada’s Feminist International Assistance Policy and its efforts towards gender equality and women’s empowerment, as well as its “Africa Fertilizer and Soil Health” initiative to boost food security and sustainability.