Mozambican farmers received a significant boost with a $2 million fertilizer financing project launched in June. This initiative aims to improve crop yields and empower smallholder farmers, who are the backbone of the country’s agricultural sector.
With September approaching, farmers across Mozambique are busy preparing their fields. Fertilizer is essential for a bountiful harvest, especially in the southern provinces where soils are less fertile and rainfall is unpredictable.
The project, titled “Fertilizer Financing for Sustainable Agriculture Management in Mozambique,” is a collaboration between the Africa Fertilizer Financing Mechanism and the African Fertilizer and Agribusiness Partnership (AFAP). It aims to provide 300,000 smallholder farmers with easier access to fertilizer over the next three years.
This will be achieved through a $2 million partial trade credit guarantee. This essentially reduces the risk for fertilizer suppliers, allowing them to deliver 60,000 tons of fertilizer on credit to farmers through a network of agro-dealers. The project also includes an $877,980 grant to train farmers on soil health practices.
This financial support is crucial for Mozambique, where 95% of agricultural production comes from smallholder farmers. These farmers cultivate a variety of crops including rice, maize, soybeans, sugar, bananas, vegetables, nuts, cotton, and tobacco. The new financing will specifically target the production of rice, maize, and soybeans, which are vital staples.
The launch of this project follows the African Union’s African Fertilizer and Soil Health Summit held in Kenya earlier this year. The summit saw African leaders pledge their support to fully operationalize the Africa Fertilizer Financing Mechanism, recognizing its role in boosting agricultural productivity across the continent.
