Farmers to benefit from 4.9bn/- fertiliser credit scheme

DODOMA: MORE than 550,000 small holder farmers across Tanzania are expected to benefit from a new Partial Credit Guarantee (PCG) scheme aimed at enhancing access to fertiliser, improving supply chain efficiency and boosting productivity.

The initiative, valued at 2.0 million US dollars (about 4.9bn/-), is designed to de-risk Tanzania’s fertiliser supply chain by ensuring availability, affordability, and access to financing.

Speaking in Dodoma, the Deputy Permanent Secretary responsible for Food Security in the Ministry of Agriculture, Dr Stephen Nindi said the government will sustain efforts to supporting smallholder farmers, especially in remote areas, by promoting inclusive financial mechanisms in collaboration with the private sector.

“This project will be implemented through the private sector, enabling fertiliser distributors to access credit, while also providing farmers with education on proper fertiliser use,” said Dr Nindi.

The project is a partnership between the Africa Fertiliser Financing Mechanism (AFFM), the Tanzania Fertiliser Regulatory Authority (TFRA) and the African Fertiliser and Agribusiness Partnership (AFAP), which serves as the implementing agency.

TFRA Director General, Joel Laurent noted that the project builds on achievements from the 2019–2022 fertiliser credit guarantee pilot, now shifting focus specifically toward smallholder farmers to improve food security and production efficiency.

“This initiative not only reduces risk in the agricul – tural sector but also catalyses private sector investment and empowers smallholder farm – ers, who are the backbone of our food system,” he said.

Laurent also noted the project’s alignment with Africa’s broader policy agenda, particularly following the 2024 Fertiliser and Soil Health Summit in Nairobi, where the Nairobi Declaration was adopted to triple access to quality fertilisers across the continent within a decade.

He thanked AFFM for its ongoing support and par – ticipation in this year’s Farmers’ Agricultural Exhibition at Nzuguni grounds, where the programme was officially launched on August 7th this year.

Project Coordinator at AFFM, Marie Claire Kalihangabo said that the 2.0 million US dollars (about 4.9bn/-), guarantee will sup – port small and medium agrodealers in acquiring fertiliser on credit from large suppliers.

The programme is ex – pected to engage three largescale suppliers, 30 medium distributors, and over 1,000 retailers, ultimately delivering nearly 60,000 tonnes of fertil – iser over the next 36 months. AFAP will receive 528,600 US dollars (about 1.3bn/-) to manage the project.

The programme is part of Tanzania’s wider agricultural modernisation strategy, which also targets 100 per cent availability of industrial raw materials to support agro-processing and value addition, along with a 10 per cent annual growth in agriculture through modernisation, mechanisation and digital solutions.

The PCG mechanism is hosted by the African Devel – opment Bank (AfDB) and implemented in Tanzania through AFAP.