The African Development Bank’s (AfDB) board has approved on Tuesday a $11.7 million budgetary allocation to the African Fertilizer Financing Mechanism (AFFM) for its 2023 operations.
The approval adds more than of $16.4 million extended to the Facility to boost its 2023 budget. While, it includes $4.7 million, which was carried over from the previous year, according to AFDB’s statement.
AFFM will facilitate smallholder farmers’ access to inputs and extension services through credit guarantee projects and capacity building for farmers and input distributors to increase agricultural productivity and improve soil conditions.
The statement also discovers AFFM’s plans for 2023; implement trade credit guarantee schemes totaling $9.7 million in Tanzania, Uganda, Mozambique and Kenya.
However, it plans for three more new projects could be launched in Senegal, Zambia and Ghana if the United States Agency for International Development (USAID) follows through on its $15 million commitment to it, the statement read.
AFFM will actively work with African countries and other key stakeholders to develop the national food and agriculture pacts that the continent’s leaders presented at the Feed Africa Summit in Dakar in January 2023.
In 2006, AFFM has been established by the African Union in Abuja, known for its crucial work in addressing food crises and various threats to food security caused by Russia’s war in Ukraine, climate change, conflict, locust infestation and disease.
It is worth mentioning that the AFDB‘s annual meetings 2023, will be held from 22 to 26 May in Sharm El-Sheikh, as it will explore innovative approaches to boost private sector finance for climate action on the African continent.
