The African Development Bank (AfDB) has announced a plan to support smallholder farmers in Tete, Manica, Sofala and Gaza provinces of Mozambique through its Africa fertiliser financing mechanism project.

Development Diaries reports that the fertiliser financing mechanism, according to the bank, will extend a two million dollars partial trade credit guarantee and an U.S.$877,980 grant to the African fertiliser agribusiness partnership.

This, the bank said, is to support the distribution of 60,000 metric tonnes of fertiliser to 300,000 smallholder farmers in the aforementioned provinces.

According to the bank, the development of significant out-grower programmes for rice, maize, and soybeans, especially in these provinces, has raised the need for the use of fertilisers for production.

More than 70 percent of the population in Mozambique relies on the agriculture industry as a source of income, making it a national priority.

Despite this, Mozambique continues to be a net importer of food. In 2020, agriculture made up 26 percent of the country’s GDP, according to the International Trade Administration (ITA).

‘In addition to making fertiliser available via access to finance, the project will also support soil health improvement and increased food production through integrated soil fertility enhancement and restoration, capacity building and community development activities’, said Africa fertiliser financing mechanism coordinator, Marie Kalihangabo.

By reducing the risks associated with suppliers lending fertilisers to wholesalers on credit, the fertiliser credit facility hopes to make it easier for farmers to obtain high-quality fertiliser.

Photo source: AfDB