Fertilizer Financing for Sustainable Agriculture Management Project in Kenya

Project Description

This project consists of a $2 million partial trade credit guarantee and a $219,000 grant from the Africa Fertilizer Financing Mechanism to Apollo Agriculture Limited

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 for the Fertilizer Financing for Sustainable Agriculture Management project in Kenya. The project has four components: (i) support of access to finance for farmers through the credit guarantee facility, (ii) support of increased fertilizer availability, (iii) soil health management and extension services, and (iv) data collection and analysis, monitoring, reporting, and project management. It aims to increase agricultural productivity by facilitating smallholder farmers’ timely access to fertilizers and their appropriate use. Between 2024 and 2026, the project targets the distribution of 7,928 metric tons of fertilizers to 106,000 smallholder farmers through 150 retail agro-dealers and 800 village-based agents using Apollo Agriculture Limited’s digital platform, the Appollo Checkout App

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. Fifty percent of the targeted farmers will be women. The credit guarantee should be leveraged at least five times.

The market

In 2021, Kenya imported 758,000 tons of chemical fertilizers. The country locally consumes all imported fertilizers. The market’s leading players include importers or blenders and the government, which runs a fertilizer subsidy program. However, most smallholder farmers access finance through microfinance institutions and, where applicable, commercial banks (where farmers can provide tangible collateral).

Development outcomes

The project’s anticipated outcomes include household job creation, improved food security and income from increased food production, increased access to financing for small and medium enterprises (about $10 million worth of additional credit will be made available), agricultural inputs, and fertilizers. This facility would empower 35% of Apollo's 500 agro-dealers and fifty percent of its 106,000 rural farmers.

Source: AFDB