As part of its recently launched ‘Fertiliser Financing for Sustainable Agriculture Management Project,’ the Africa Fertiliser Financing Mechanism will provide a US$2mn partial trade credit guarantee and a grant of US$219,000 to Kenyan corporation, Apollo Agriculture Limited to facilitate the company’s fertiliser sales
The two-year-long project aligns with Kenya's Vision 2030, which identifies agriculture as a key driver of the country’s economic growth and food security. Using Apollo's digital platform, the project will connect farmers seeking fertiliser and other inputs on credit with a network of 150 retail agro-dealers and 800 village-based agents. This will help deliver nearly 8,000 tonnes of fertilisers to 100,000 smallholder farmers, boosting harvests and incomes.
The launch event of the project was held on 8 April in Kenya’s capital, Nairobi. Representatives of the African Development Bank (AfDB) which manages the Mechanism; Apollo Agriculture and the Kenyan and Norwegian governments attended the launch event. The Norwegian Agency for Development Cooperation, is also supporting the project through its contribution of US$10.15mn to the Africa Fertiliser Financing Mechanism.
During the launch, Nnenna Nwabufo, director general of the AfDB’s East Africa regional office, said, "This support is in line with the Bank's Feed Africa Strategy. It will ensure long-term private sector engagement in financing fertiliser, ultimately increasing food production and security in Kenya."
Benjamin Njenga, co-founder of Apollo Agriculture, explained that farmers can obtain high-quality farming supplies by paying a small deposit upfront, with the full loan being due when the farmer has harvested and sold the produce.
Targeting maize production, Apollo Agriculture has already begun implementing the project in Kenya’s Bungoma and Uasin Gishu counties. There are high expectations that yields will increase for the harvest season starting in September 2024.
Africa Fertiliser Financing Mechanism provides million dollar credit guarantee to Kenyan farmers
Representatives of the African Development Bank, African Fertilizer Financing Mechanism, the Government of Norway and Apollo Agriculture at the Nairobi launch of the Financing for Sustainable Agriculture Management Project. (Image source: AfDB)
