West Africa Fertilizer Financing Forum addresses hindrances, gives solutions in improving productivity

The first ever West Africa Fertilizer Financing Forum successfully took place between September 30 and October 1, 2019 in Abidjan, Côte d'Ivoire. Actors in the West Africa’s fertilizer industry emphasized the requirement for financially supporting the fertilizer value chain to improve agricultural productivity in the region.

The leaders in the private agricultural sector, development partners and agriculture ministers made the call during the opening ceremony of the first West Africa Fertilizer Financing Forum in Abidjan, Côte d’Ivoire, on Monday.

The theme of the West Africa Fertilizer Financing Forum was “Fostering Fertilizer Future”

Under the theme “Fostering Fertilizer Future,” the event organized by the African Fertilizer Financing Mechanism Secretariat and hosted at the African Development Bank headquarters, will explore public-private partnership in pushing Africa’s fertilizer development agenda; concrete financing solutions for the fertilizer sector, and West Africa’s fertilizer sector dynamics, challenges and opportunities.

“Effective partnerships for financing are key to the fertilizer sector’s growth. The forum is a unique opportunity for our fertilizer companies, from the largest multinational to the smallest SME, to build viable business plans and connect with the Bank and other financial institutions to build a strong agriculture sector to feed Africa and improve the lives of Africans,” said Pierre Guislain, Vice President for Private Sector, Infrastructure and Industrialization at the African Development Bank, speaking on behalf of the Bank President Akinwumi A. Adesina.

The experts of African Development Bank, the Africa Fertilizer Financing Mechanism and the West Africa Fertilizer Association believe that right fertilization is highly essential to achieve food security and reduce hunger. West Africa Fertilizer Financing Forum discussed the financing requirements of the fertilizer value chain and appropriate financing products. The experts wanted the forum to act as a podium for the Africa Fertilizer Financing Mechanism and the African Development Bank to present their products that support the industry and connect private sector dealers to the Bank and other regional financial institutions.

The challenges are widespread in West Africa, Mali is the only country to have achieved the fertilizer goal of producing 50 kilograms of nutrients per hectare, as per the objectives of the 2006 Abuja Declaration. “This initiative of the African Development Bank and the Africa Fertilizer Financing Mechanism is timely as it reminds us of the urgent need to reconsider our policies and strategies in the area of fertilizer financing,” Gaoussou Touré, the Minister of Rice Promotion in Côte d’Ivoire said.

At the forum, it has been revealed that lack of financing hinders fertilizer value chain development in Africa. According to the West Africa Fertilizer Association, only 3 percent of bank loans in the Economic Community of West African States (ECOWAS) are directed to the agriculture sector. Commercial bank interest rates are too high, compared to other types of financing in the region, and the process takes too long to be of benefit to farmers.

“Such difficulties obviously cannot favour the development of a strong fertilizer sector in the region and hence threaten the achievement of our regional objectives in the area of food security. The forum will definitely help us engage with financial actors present to find solutions that will unlock fertilizer financing in West Africa,” said Moussa Diabaté, president of WAFA.

There is also the requirement for the stakeholders to accelerate the implementation of the 2006 Abuja Declaration to achieve the aspirations of the Africa Union’s Agenda 2063. This requirement was stressed by the African Union Commissioner for Rural Economy and Agriculture, Amb. Josefa Leonel Correia Sacko to accelerate the implementation of the 2006 Abuja Declaration to achieve the aspirations of the Africa Union’s Agenda 2063.

“I believe that the forum will go a long way in solving the issues of affordability and access to quality fertilizers by the smallholder farmers in Africa,” the commissioner said.

The two-day forum aims to develop relationships between private sector players in West Africa’s fertilizer industry and the African Development Bank, along with other development financial institutions and commercial banks, which will lead to increased access to affordable financing and availability of fertilizer to farmers.