Implementation

Countries of intervention

According to the Framework Document establishing the AFFM, the Mechanism is intended to benefit all African countries and to address a continent-wide concern. In this regard, the Abuja Declaration called on all African Union countries to support, provide resources for, and participate in the activities of the AFFM. Therefore, any African country is eligible to participate both as contributor and as beneficiary.

The prioritization of eligible countries by the AFFM is anchored on the following criteria:

  • A country’s political commitment to progress towards the 10 percent allocation of national budget to the agriculture sector as mandated by the Maputo Declaration
  • A country’s potential for effective and sustainable implementation of programs and projects
  • A country’s budgetary contribution to the Mechanism

 

Partners for the implementation of the credit guarantee schemes

In order to reach fertilizer value chain actors, the Africa Fertilizer Financing Mechanism works closely with actors with local knowledge and outreach networks and who can easily connect AFFM to the target beneficiaries. For the implementation of the credit guarantees, the following are some of the actors:

  • Financial institutions:

AFFM partners with credible financial institutions that have a demonstrated ambition to play a vital role in the financing of the fertilizer value chain. They must also possess industry credibility, financial capability, stability and performance. They will provide financing to beneficiaries that meet predetermined eligibility criteria and/or have a significant current loan book of fertilizer-clients.

  • Implementing partners:

With their deep knowledge of the local fertilizer market and familiarity with financial institutions, implementing partners initiate contact, conduct negotiations and conduct monitoring and evaluation activities. They can also play a key role in providing the technical assistance necessary to educate financial institutions, act as match-makers to establish working relationships in the value chain and coordinate and/or provide extension services throughout the fertilizer value chain.

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