AFFM de-risks fertilizer supply chain with 4.9bn/- credit guarantee

Dodoma: The Africa Fertilizer Financing Mechanism (AFFM) has launched a second-round partial credit guarantee worth USD 2 million (about 4.9bn/-) to de-risk Tanzania’s fertilizer supply chain, ensuring availability, affordability, and financing.

Speaking at the launch during the National Farmers Exhibition at Nzuguni Nanenane Grounds in Dodoma, the Deputy Permanent Secretary responsible for food security in the Ministry of Agriculture, Dr Stephen Nindi, said the programme aligns with national development priorities and reflects Tanzania’s readiness to partner with those who share its vision for a resilient, market-driven agricultural sector.

“We will continue to provide the necessary institutional support, policy coordination, and stakeholder engagement to ensure that such transformative initiatives deliver a lasting impact for our farmers and the broader economy,” he said.

Looking ahead, he noted that under the theme “Feed ourselves and feed others commercially,” Tanzania aims by 2030 to reduce post-harvest losses to just 5 percent, double agricultural export revenues from USD 1.2 billion to USD 5 billion, and create 3 million jobs, especially for youth and women.

The country also targets 100 percent availability of industrial raw materials to support agro-processing and value addition, alongside a 10 percent agricultural growth rate through modernization, mechanization, and digital agriculture.

Marie Claire Kalihangabo, AFFM coordinator, said the mechanism, hosted and managed by the African Development Bank (AfDB, will be implemented in Tanzania in partnership with the Africa Fertilizer and Agribusiness Partnership (AFAP). This second round includes a USD 2 million partial credit guarantee and a USD 528,600 grant.

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She explained that the project has three main components: supporting hub agro-dealers to access the credit guarantee facility, boosting fertilizer availability, and ensuring effective project management and coordination.

AFAP East Africa Regional Director, James Mutonyi, observed that most farmers do not apply fertilizers suitable for their crop, climate, or soil because limited supplier capital restricts options, ultimately lowering productivity. Under the initiative, farmers will be assured of a consistent supply of quality, affordable fertilizers from suppliers including agro-dealers and cooperative unions.

Sadi Mwang’onda, an agro-dealer from the southern highlands, said the project has benefited both suppliers and farmers by guaranteeing supply.

“We have small capital and are not bankable. But under this initiative, we have been supported and can now supply fertilizers in larger quantities,” he said.