A June 2022 African Development Bank (AfDB) press release has revealed that the African Fertilizer Financing Mechanism (AFFM) is providing a partial trade credit guarantee of $2 million to ETG Inputs Ghana Limited.
The AFFM was established in 2007 to improve African agricultural productivity through the use of fertilizer.
ETG Inputs Ghana Limited, a subsidiary of ETG, will enable a ten-thousand metric ton delivery of fertilizer to wholesalers who will distribute it, through retailers, to farmers in the regions. By supporting this project, AFFM supports efforts to reduce the risks associated with supplying wholesalers on credit.
“Securing opportunities for risk-sharing is crucial to building an environment of trust that leads to fertilizer availability for smallholder farmers. I’m confident our collaboration with the Africa Fertilizer Financing Mechanism will mitigate potential risks we face when dealing with wholesalers,” stated Ashish Lakhotia, CEO of Fertilizers and Agri-Inputs at ETG.
This initiative supports the delivery of fertilizer to 200,000 smallholder farmers in the Republic of Ghana’s Upper East, Savannah, Northeast, and Northern Regions. It is said that the credit will improve the country’s food security through increased supply of 10,000 metric tons of fertilizer to wholesalers by ETG during a year, and thus a better harvest.
This project is timely, especially considering the war between the Russian Federation and Ukraine and its negative effects on food and fertilizer prices in Africa. This view is shared by the AfDB Vice President:
“This project with ETG comes at a time when Africa’s farmers—recovering from the economic impacts of the COVID-19 pandemic— now face rising market prices for fertilizer, largely due to Russia’s war in Ukraine,” as outlined by Dr. Beth Dunford, the African Development Bank’s Vice President for Agriculture, Human and Social Development.
Agriculture is a fundamentally important area for development, within Africa and across the globe. At ABiQ, we keep you up to date on the development of the African and Middle Eastern markets, highlighting investment opportunities, to help businesses make the right choice when it comes to their role in investment, economic development and socioeconomic improvement.
ABiQ provides validated data and trusted business intelligence. Our unique forecasting and project tracking tool provides data and analysis to support your business growth strategy across the African continent and more. Contact us for a free demo.