AFFM Empowers Africa's Agriculture: $10.3M Credit, AFFM 2.0, and New Leadership

In his welcoming address to the new Chair, Dr. Fregene emphasized the importance of continued collaboration between the African Development Bank, the AFFM, and African Union Member States.

In a remarkable step toward improving Africa’s agricultural productivity, the Africa Fertilizer Financing Mechanism (AFFM) has made significant strides to close the continent’s pressing agricultural productivity gap. During its 14th Governing Council meeting held on March 20, 2025, in Nairobi, Kenya, the Mechanism revealed that its initiatives have provided smallholder farmers across several African nations with greater access to fertilizers and other agricultural resources. The meeting, which attracted notable stakeholders from various international agricultural and financial organizations, highlighted a series of successful interventions and the Mechanism’s growing role in fostering sustainable agricultural practices.

According to the update presented at the meeting, AFFM's programs facilitated the provision of 18,448 tons of fertilizers to a total of 115,535 smallholder farmers in Kenya, Uganda, Mozambique, and Zimbabwe throughout 2024. These vital supplies were made possible by a total of $10.3 million in credit guarantees, which are critical for improving access to essential agricultural inputs.

The effort is part of the Africa Fertilizer Financing Mechanism’s overarching mission to enhance agricultural productivity across the continent by providing innovative financing solutions for the procurement, distribution, and use of both organic and inorganic fertilizers. The Mechanism also focuses on soil health improvement, which is crucial for sustainable farming practices and ensuring long-term food security in the region.

Dr. Martin Fregene, Director of Agriculture and Agro-Industry at the African Development Bank, spoke to the success of these initiatives, stating, “The Mechanism is playing a transformative role in addressing the low fertilizer application rates in Africa and helping to increase food production on the continent. This effort not only supports food security but also contributes to the overall economic development of our nations.”

Africa’s agricultural landscape faces significant challenges. The continent struggles with low fertilizer application rates, widespread underutilization of arable land, and a growing food production deficit. These issues are compounded by the fact that many African nations rely heavily on food imports, with 64% of African countries spending over 40% of their national income on agricultural imports. As such, there is a pressing need for domestic agricultural productivity to be ramped up, and the AFFM has positioned itself as a crucial player in this effort.

The 14th Governing Council meeting also marked a major milestone with the appointment of Ambassador Moses Vilakati as the new Chair of the AFFM Governing Council. Ambassador Vilakati, who serves as the Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment at the African Union Commission, expressed confidence in the future of the Mechanism, saying, “With AFFM’s continued growth and the commitment of our countries, we are on track to make Africa a net food exporter, with a sustainable agricultural landscape that benefits all African nations, especially with the support of the African Continental Free Trade Area.”

In his welcoming address to the new Chair, Dr. Fregene emphasized the importance of continued collaboration between the African Development Bank, the AFFM, and African Union Member States. He also acknowledged the vital role the Mechanism plays in achieving the African Union’s broader goals related to agricultural productivity, food security, and economic growth.

One of the key agenda items discussed at the meeting was the “AFFM 2.0” transition plan, which aims to align the Mechanism with its expanded mandate under the Nairobi Declaration on Africa Fertilizer and Soil Health. This Declaration, which was signed by African nations, commits to enhancing agricultural productivity across the continent, improving soil health, and promoting sustainability in agricultural practices. The transition plan includes a focus on strengthening the Mechanism's operations, improving access to fertilizers, and supporting sustainable farming practices.

The Council strongly endorsed the full operationalization of AFFM 2.0 and agreed to continue to review its readiness for implementation. Additionally, the 2024 Annual Report and the 2025 Work Program and Budget were endorsed, with special praise given to the Mechanism Secretariat’s efforts throughout the past year. The Council also acknowledged the impact of the Mechanism’s innovative financing solutions and their significant contribution to the agricultural sector in Africa.

The 14th meeting was attended by 13 members of the Governing Council, including representatives from the African Union Commission, the African Development Bank, the African Export-Import Bank, the International Fund for Agricultural Development, and other key partners. These stakeholders play an essential role in the success of the Mechanism, bringing valuable expertise and resources to the table to support smallholder farmers and agricultural development across Africa.

The continued growth and success of the Africa Fertilizer Financing Mechanism signal positive change for Africa’s agricultural sector. Through strategic partnerships, effective financing, and targeted interventions, the Mechanism is driving progress toward a more sustainable, self-reliant, and food-secure Africa. With growing support from stakeholders and countries across the continent, AFFM is well-positioned to help Africa realize its agricultural potential, reduce its reliance on food imports, and ultimately become a net food exporter.