The Africa Fertilizer Financing Mechanism (https://apo-opa.co/49HvzGN) will provide a $2 million partial trade credit guarantee and a $219,000 grant funding to Nairobi-based Apollo Agriculture Limited (www.ApolloAgriculture.com) to support the distribution of over 7,000 tonnes of fertilizers to some 100,000 smallholder farmers in Kenya.
Between 2024 and 2026, the project will support Apollo Agriculture Limited to sell fertilizer through a part of its network, covering around 150 retail agro-dealers and 800 village-based agents using digital platforms.
Most smallholder farmers in Kenya buy fertilizers through informal credit, microfinance institutions and commercial banks, but challenges remain for farmers to access fertilizer financing as some cannot provide tangible collateral. These new funds will be channelled through the Fertilizer Financing for Sustainable Agriculture Management project.
“The Fertilizer Financing for Sustainable Agriculture Management project will improve farming productivity by facilitating access and use of fertilizer for smallholder farmers at the last mile, with 50 percent of women among the beneficiaries,” said Marie Claire Kalihangabo, Africa Fertilizer Financing Mechanism Coordinator.
The fertilizer market’s leading players include importers, blenders, and the Kenyan government, which runs a fertilizer subsidy program. In 2021, Kenya imported 758,000 tonnes of chemical fertilizers. Kenyan farmers pay $35 for a 50 kg fertilizer bag (https://apo-opa.co/3SMdJwC).
Benjamin Njenga, co-founder of Apollo Agriculture Limited, said: “Apollo Agriculture is pleased to establish a partnership with the Africa Fertilizer Financing Mechanism to make essential farming inputs accessible and affordable to small-scale farmers, thereby boosting farmer income and Kenya’s food security.”
The Board of Directors of the African Development Bank approved the Fertilizer Financing for Sustainable Agriculture Management project on 13 October 2023. It aligns with the Bank’s Feed Africa Strategy (https://apo-opa.co/47CfrVh) because it will stimulate the private sector’s fertilizer financing in Kenya, improving food productivity and security. It ensures the continuity of the Bank’s Country Strategy Paper 2019-2023 for Kenya (https://apo-opa.co/49JT6XV) and the Bank’s Technologies for African Agricultural Transformation (https://apo-opa.co/3MPYOh4) Programme.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Contacts:
Communication and External Relations Department
Email: media@afdb.org
Nelly Nguegan
Africa Fertilizer Financing Mechanism
Email: f.nguegan@afdb.org
About the Africa Fertilizer Financing Mechanism:
In 2006, African leaders mandated the Africa Fertilizer Financing Mechanism (AFFM) to help African Union Member States increase agricultural productivity. The Mechanism was created in 2008 and became operational in 2015. The African Development Bank hosts and manages the AFFM.
About Apollo Agriculture Limited:
Apollo Agriculture Limited’s mission is to help small-scale farmers maximize their profits and bring commercial farming and food security to everyone. Its automated, tech-driven approach has allowed it to deliver farm inputs on credit to over 330,000 small-scale Kenyan farmers across 20 counties, with an average acreage of less than 1.5 acres and around half of them women.
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
