The Africa Fertiliser Financing Mechanism (AFFM) will provide the African Fertiliser and Agribusiness Partnership (AFAP) in Tanzania a US$2mn partial credit guarantee, along with a US$528,600 grant, which will help cover 94% of the project’s recurrent costs
The project, which will be implemented from 1 July 2023 through 31 July 2026, aims to increase productivity by enabling timely access to and appropriate fertiliser use by smallholder farmers. It will enhance access to quality inputs through a functional, efficient and sustainable fertiliser supply chain in Tanzania and improve access to finance for large fertiliser distributors.
The project has three main components namely, support for hub agro-dealers to access the credit guarantee facility; support to increase fertiliser availability; and project management and coordination.
In addition to the 14 regions where the 2019 credit guarantee project was implemented, AFAP will expand its current project activities to at least five additional regions: Ruvuma, Manyara, Rukwa, Kagera and Mwanza. The project is expected to increase agricultural productivity and food security in Tanzania, in line with the African Development Bank's (AfDB) Feed Africa strategy. The credit guarantee is expected to be used 15 times to enable the distribution of at least 60,000 tonnes of fertiliser worth US$36.5mn.
Overall, the project targets five suppliers and 35 hub agro-dealers as direct beneficiaries, 1,000 retailers as indirect beneficiaries, and 550,000 smallholder farmers as the ultimate beneficiaries.
