The Board of Directors of the African Development Bank (AfDB) Group has approved a project to provide 60,000 metric tons of fertiliser to 400,000 smallholder farmers in Uganda.
The bank in a statement issued on its website on Sunday said this would be done under the Fertiliser Financing for Sustainable Agriculture Management project.
It said: “Africa Fertilizer Financing Mechanism will provide two million dollars in partial trade credit guarantees and a grant of 877,842 million dollars to the African Fertiliser and Agribusiness Partnership.
“Over a three-year duration, the project will support two wholesalers to sell fertiliser with a value of up to fifteen times the value of the two million dollars partial trade credit guarantee.
“It will also link wholesalers to around twenty-five hub agro-dealers and 125 retail agro-dealers who will on-sell the fertiliser to farmers.”
The bank said the credit facility would reduce the risks associated with suppliers lending fertilisers to wholesalers on credit.
It also said that the project was expected to boost yields and provide training to 3.4 per cent targeted farmers with 40 per cent of them women.
It further stated they would be using improved seeds, balanced crop nutrition and best farming practices.
Meanwhile, Marie-Claire Kalihangabo, Coordinator, Africa Fertiliser Financing Mechanism, said in Uganda that the fertiliser consumption was about 2.5 kg/ha.
According to Kalihangabo, the project will help to make fertiliser more accessible and appropriately used by farmers.
She expressed delight as it would in turn boost agricultural productivity and help to improve food security in the country.
“The project will advance the Bank’s Feed Africa Strategy by increasing food productivity and security.
“It builds on the results of the Sustain Africa Initiative, the Bank’s Country Strategy Paper for Uganda 2023–2026.
“The project was approved on Sept. 22,” she said.
Source: News Agency of Nigeria