Apollo Agriculture has teamed up with the Africa Fertilizer Financing Mechanism (AFFM) to provide vital fertilizer support to smallholder farmers.
In a landmark initiative to bolster food security in Kenya, Apollo Agriculture (site) has teamed up with the Africa Fertilizer Financing Mechanism (AFFM) to provide vital fertilizer support to smallholder farmers. This collaboration promises to enhance agricultural productivity and increase farmers’ incomes across Kenya.
Empowering farmers through innovative financing
The AFFM’s Fertilizer Financing for Sustainable Agriculture Management Project is set to revolutionize the way smallholder farmers access essential agricultural inputs. With a robust funding structure that includes a USD 2 million partial trade credit guarantee and an additional grant of USD 219,000, Apollo Agriculture is poised to facilitate significant fertilizer sales. This project is further bolstered by a USD 10.15 million contribution from the Norwegian Agency for Development Cooperation (NORAD), showcasing a strong international commitment to Kenyan agriculture.
Apollo Agriculture’s role in enhancing access
Apollo Agriculture, a key player in this initiative, utilizes a sophisticated digital platform to bridge the gap between fertilizer suppliers and farmers. By connecting over 100,000 farmers with 150 retail agro-dealers and 800 village-based agents, Apollo ensures that high-quality agricultural inputs are just a click away. This system not only simplifies the procurement process but also extends the reach of these vital resources to the most remote areas.
Apollo was founded in 2016 by Eli Pollak, Benjamin Njenga, and Earl St Sauver, with the aim of providing farmers with everything they need – from seed to sale – to become successful commercial farmers.
Nnenna Nwabufo, Director General of the African Development Bank’s East Africa regional office, said, “This support is in line with the Bank’s Feed Africa Strategy. It will ensure long-term private sector engagement in financing fertilizer, ultimately increasing food production and security in Kenya.”
Benjamin Njenga, co-founder of Apollo Agriculture, explained that farmers can obtain high-quality farming supplies by paying a small deposit upfront, with the full loan being due when the farmer has harvested and sold the produce. “We believe increased and proper fertilizer use can significantly impact food supply and household income,”
Gunnar Holm, Norwegian Ambassador to Kenya, said at the launch. Peter Owoko, Director of Policy at the Ministry of Agriculture and Livestock Development, announced new initiatives to strengthen Kenyan food security. “During the 2024 cropping seasons, the government targets to avail up to 12.5 million t of fertilizers to farmers under the subsidy program.”
Addressing credit challenges in agriculture
One of the significant barriers facing Kenyan farmers is the lack of sufficient collateral to secure traditional financing for essential inputs like fertilizers. The AFFM addresses this challenge by sharing credit risk with suppliers, thus boosting their confidence to offer products on credit terms. This innovative approach provides direct financial support to farmers at the last mile, ensuring they receive not just fertilizers, but also certified seeds, crop protection, and insurance against crop failure.
Aligning with national goals
The project aligns with Kenya’s Vision 2030, which identifies agriculture as a crucial pillar for national economic growth and food security. With continued support from organizations like the African Development Bank, which contributed USD 67 million through its African Emergency Food Production Facility, Kenya is making strides towards achieving its ambitious agricultural goals.
The partnership between Apollo Agriculture and the AFFM promises not only to enhance food production but also to stabilize household incomes through improved agricultural practices.
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