The Africa Fertilizer Financing Mechanism, part of the African Development Bank, has launched a $2 million initiative aimed at improving fertilizer access for smallholder farmers in Tanzania. The new project will offer a trade credit guarantee to help fertilizer suppliers deliver 60,000 tons of fertilizer on credit to farmers. This program seeks to ease the financial burden on Tanzanian farmers by providing access to essential inputs without upfront payment.
Access to fertilizers has long been a challenge for Tanzanian farmers, largely due to the country’s banking system, which tends to shy away from lending to the agricultural sector. In Tanzania, only a small fraction of commercial loans go to agriculture, and many farmers lack the necessary collateral to secure loans. This has limited their ability to purchase fertilizers, resulting in lower agricultural productivity. The new initiative will help bridge this gap by allowing suppliers to offer fertilizers on credit to smallholder farmers, thus providing them with the tools needed to boost crop yields.
The project’s launch event, held at the Nanenane Agricultural Exhibition in Dodoma, was attended by over 100 participants, including officials from Tanzania’s Ministry of Agriculture, the Fertilizer Regulatory Authority, and various private sector stakeholders. Dr. Stephen Nindi, the Deputy Permanent Secretary for Food Security, highlighted the alignment of the project with Tanzania’s broader agricultural development goals. He emphasized the government’s continued support for initiatives that drive agricultural transformation and improve food security.
The $2 million initiative will work with major fertilizer suppliers and agro-dealers to ensure consistent, affordable access to fertilizers for smallholder farmers, particularly in regions such as the southern highlands and the Lake Victoria zone. Over the next 36 months, the project aims to increase the availability of quality fertilizers, which will help farmers optimize their yields and contribute to food security across the country.
The project builds upon a similar initiative from 2019-2022 and is expected to have a significant long-term impact. By reducing risks in fertilizer supply and stimulating private sector investment, the program will help empower Tanzanian farmers and enhance the agricultural sector’s role in national development. The Africa Fertilizer Financing Mechanism continues to play a key role in ensuring that African farmers have the support they need to thrive and contribute to the continent’s food security.
