Key Takeaways:
- Substantial Funding Commitment: Global Affairs Canada has allocated $7.3 million to the Africa Fertilizer Financing Mechanism (AFFM) to support sustainable agriculture across Africa, focusing on enhancing smallholder farmers’ productivity, especially women and youth.
- Credit Guarantee and Soil Health Initiatives: The funding will expand credit guarantee programs for fertilizer importers, improve soil health, and provide crucial technical assistance to farmers.
- Strategic Program Implementation: Under the African Development Bank Group, the ‘Fostering Africa’s Agricultural Productivity through Fertilizer Value Chain Financing’ (FOSTER) program will specifically utilize these funds to improve fertilizer access and utilization.
Funding Overview
Global Affairs Canada announced a significant funding initiative by providing $7.3 million to the Africa Fertilizer Financing Mechanism (AFFM). This funding is part of a strategic effort to enhance agricultural productivity and the livelihoods of smallholder farmers across Africa, particularly targeting women and youth. The funds are earmarked for the AFFM’s FOSTER program, which aims to facilitate broader access to fertilizers through innovative financing and by building the capacity of the agricultural sector on the continent.
FOSTER Program Highlights
The FOSTER program, administered by the African Development Bank Group, plays a pivotal role in this initiative:
- Targeted Impact: Aims to reach 800,000 smallholder farmers, improving fertilizer utilization with the expectation of increasing yields by 30%.
- Comprehensive Support: Provides credit guarantees to fertilizer importers and aggregators, making purchasing fertilizers on credit easier, thus ensuring a steady supply.
- Technical and Policy Assistance: Apart from supplying fertilizers, the program also focuses on enhancing soil health and formulating supportive fertilizer policies and regulatory frameworks that advocate for gender-sensitive and sustainable practices.
Strategic Goals and Partnerships
Dr. Beth Dunford, the Bank’s Vice President for Agriculture, Human, and Social Development, emphasized the alignment of this funding with the AFFM’s Strategic Plan 2022-2028, which includes broadening access to finance and implementing policy reforms to bolster smallholder farmers’ operations across Africa.
Canada’s Minister of International Development, Ahmed Hussen, highlighted Canada’s commitment to supporting “resilient, climate-smart agriculture and adaptable food production systems” as part of this initiative. This approach focuses on immediate agricultural productivity, long-term sustainability, and resilience against climate variability.
Regional and Global Alignment
The FOSTER program aligns with several key international goals and policies:
- United Nations’ 2030 Agenda and the SDGs: Specifically targets sustainable agriculture and food security goals.
- African Union’s Agenda 2063 and the Malabo Declaration: Supports comprehensive strategies aimed at sustainable agricultural development and enhanced food security in Africa.
- Canada’s Feminist International Assistance Policy: Aligns with Canada’s emphasis on gender equality and women’s empowerment within the agricultural sector.
Image provided by AFDB
