Pledges for a Stronger Africa Fertilizer Financing Mechanism to Increase Food Production in Africa

21 May 2024
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African Development Bank (Abidjan)
announcement

African heads of state have committed to supporting the full operationalization of the Africa Fertilizer Financing Mechanism, a step that will empower it to invest in yield-boosting technologies and soil health initiatives, finance infrastructure and logistics to enhance fertilizer availability and market access for Africa's farmers.

The decision, which came during the Africa Fertilizer and Soil Health Summit in Nairobi, is captured in the Nairobi Declaration on the Africa Fertilizer and Soil Health Summit.

The move also paves the way for African Union member states to create a soil health fund under the auspices of the Africa Fertilizer Financing Mechanism, which is hosted by the African Development Bank Group. The fund will support research, innovation, capacity building, and startups focused on fertilizer use and soil health.

African heads of state also adopted a 10-year Action Plan for Fertilizer and Soil Health, and the Soil Initiative for Africa.

The African Union Commission and the African Union Development Agency - New Partnership for Africa's Development will oversee the implementation of these commitments and others set out in the Declaration and report progress to the African Union Assembly in February 2026.

The Bank's Vice President for Agriculture, Human and Social Development, Dr Beth Dunford, said: "As one of the key mechanisms that will support the implementation of the Africa Fertilizer and Soil Health's 10-year Action Plan, the Bank is committed to scaling up the Africa Fertilizer Financing Mechanism 2.0, with the overall mandate to increase productivity and improve soil health. The Bank will finance and mobilize resources from multilateral development banks, bilateral donors, private sector for an effective and capable Africa Fertilizer Financing Mechanism 2.0 to improve fertilizer availability, de-risk farmer investments, and support policy reforms."

Africa Fertilizer Financing Mechanism Coordinator Marie Claire Kalihangabo said, "We are ready to mobilize investments through an enhanced Africa Fertilizer Financing Mechanism and provide innovative financing products to ensure timely access to quality, affordable organic and inorganic fertilizers, promoting their appropriate use by farmers across the continent".

During the summit, The Mechanism called for agritech scaling, partnerships, and affordable access to financing. In collaboration with Yara and Sustain Africa, it hosted a side event titled "Finance, Food and Fertilizer: how the debt crisis affects food and farm inputs markets in Africa" to address fertilizer market challenges, including disruptions caused by government subsidies, economic constraints, and food import reliance.

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