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Monday, September 5, 2022

Ghana: Africa Fertilizer Financing Mechanism Extends $2M to ETG Inputs Ghana Limited to Boost Farmers’ Access to Fertilizers

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The Africa Fertilizer Financing Mechanism (AFFM) will lengthen a $2 million partial commerce credit score assure to ETG Inputs Ghana Restricted to help supply of fertilizer to 200,000 smallholder farmers in Ghana’s Higher East, Savannah, Northeast, and Northern Areas. The transfer will ease the present shortages in provide and increase yields, meals safety, and incomes of farmers within the designated areas.

Below the settlement ETG Inputs Ghana Restricted, a subsidiary of agricultural conglomerate ETG,  will allow supply of 10,000 metric tons of fertilizer to wholesalers who will distribute it, by way of retailers, to farmers within the areas. The credit score enhancement mechanism is anticipated to scale back dangers related to suppliers promoting fertilizer to wholesalers on credit score, which can lead to farmers having restricted entry to good high quality fertilizer.

“This venture with ETG comes at a time when Africa’s farmers—recovering from the financial impacts of the Covid-19 pandemic— now face rising market costs for fertilizer, largely because of Russia’s struggle in Ukraine,” mentioned Dr. Beth Dunford, the African Growth Financial institution’s Vice President for Agriculture, Human and Social Growth. “This partial commerce credit score assure helps enhance entry to those inputs at extra inexpensive costs.”

The struggle in Ukraine has contributed to fertilizer shortages, driving costs larger, and decreasing provides. In Ghana, the fertilizer scarcity has now affected 60% of the availability. The nation has seen the price of a 50kg bag of a generally used nitrogen-, phosphorus- and potassium-based fertilizer skyrocket from $26 in November 2021 to $46 in April 2022, in line with the Africa Fertilizer (https://bit.ly/3xAbEJ1) initiative, which compiles information, statistics, and knowledge on fertilizers in Africa.

The development is threatening agricultural manufacturing simply as many international locations head into the planting season. On the identical time, imports of meals staples into Africa, reminiscent of wheat and oilseed, are additionally being disrupted by the struggle.

Ashish Lakhotia, CEO of Fertilizers and Agri-Inputs at ETG, mentioned fertilizer manufacturing and distribution might be costly. “Securing alternatives for risk-sharing is essential to constructing an surroundings of belief that results in fertilizer availability for smallholder farmers. I’m assured our collaboration with the Africa Fertilizer Financing Mechanism will mitigate potential dangers we face when coping with wholesalers.” 

The venture, which is able to final for one 12 months, will help as many as 4 wholesalers to promote fertilizer with a worth of as much as 3 times that of the partial commerce credit score assure. It should additionally contribute to linking wholesalers to round 200 retailers who will on-sell the fertilizer to farmers.

The Africa Fertilizer Financing Mechanism is hosted by the African Growth Financial institution. Established in 2007, it seeks to boost pan-African agricultural productiveness by selling the usage of fertilizers.

To study extra about AFFM, click on right here (https://bit.ly/3xcSebK).

Distributed by APO Group on behalf of African Growth Financial institution Group (AfDB).

Jerry Lemogo
Communication and Exterior Relations Division
African Growth Financial institution
e-mail: [email protected]

In regards to the African Growth Financial institution Group:
The African Growth Financial institution Group (AfDB) is Africa’s premier improvement finance establishment. It includes three distinct entities: the African Growth Financial institution (AfDB), the African Growth Fund (ADF) and the Nigeria Belief Fund (NTF). On the bottom in 44 African international locations with an exterior workplace in Japan, the AfDB contributes to the financial improvement and the social progress of its 54 regional member states. For extra info: www.AfDB.org

This Press Launch has been issued by APO. The content material just isn’t monitored by the editorial staff of African Enterprise and never of the content material has been checked or validated by our editorial groups, proof readers or reality checkers. The issuer is solely chargeable for the content material of this announcement.

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