In a significant step to advance food security in Kenya, the Africa Fertilizer Financing Mechanism (https://apo-opa.co/3W642uA) has launched a project that will help deliver nearly 8,000 tons of fertilizers to 100,000 smallholder farmers, boosting harvests and incomes.

Through its Fertilizer Financing for Sustainable Agriculture Management Project (https://apo-opa.co/3QfyVsr), the Mechanism will provide a $2 million partial trade credit guarantee and a grant of $219,000 to Apollo Agriculture Limited (https://www.ApolloAgriculture.com/), a Kenyan corporation, to facilitate the company’s fertilizer sales.

The Norwegian Agency for Development Cooperation, through a contribution of $10.15 million to the Africa Fertilizer Financing Mechanism, is also supporting the project, which was launched on 8 April in the capital, Nairobi. Representatives of the African Development Bank, which manages the Mechanism, Apollo Agriculture and the Kenyan and Norwegian governments attended the launch event.

Kenyan smallholder farmers often lack the collateral to secure financing to buy the fertilizers they need. The Mechanism, by sharing credit risk with suppliers like Apollo Agriculture, bolsters their confidence to offer fertilizer on credit.

Marie Claire Kalihangabo, Coordinator of the Africa Fertilizer Financing Mechanism, said, “The credit risk guarantee also provides finance directly to smallholder farmers at the last mile of delivery. It offers fertilizer, certified seed crop protection, and insurance against crop failure.”

The two-year-long project will use Apollo’s digital platform to connect farmers seeking fertilizer and other inputs on credit with a network of 150 retail agro-dealers and 800 village-based agents. Kenya’s fertilizer market involves importers, blenders, and a government subsidy program.

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 tons of fertilizers to farmers under the subsidy program.” He thanked the African Development Bank for granting Kenya $67 million in 2022-2023 through its African Emergency Food Production Facility.

Apollo Agriculture has already begun implementing the Fertilizer Financing for Sustainable Agriculture Management Project in Kenya’s Bungoma and Uasin Gishu counties, targeting maize production. There are high expectations that yields will increase for the harvest season starting in September 2024.

The project aligns with Kenya’s Vision 2030, which identifies agriculture as a key driver of the country’s economic growth and food security.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contacts:
Communication and External Relations Department  
Email: media@afdb.org

Nelly Nguegan
Africa Fertilizer Financing Mechanism
Email: affm@afdb.org

About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

The Philippines, represented by H.E. Mersole J. Mellejor, Philippine Ambassador to Nigeria, actively participated in the High-Level African Counter-Terrorism Meeting held on 22-23 April 2024 in Abuja, Nigeria.

The meeting, which was organized by the Government of Nigeria and the United Nations Office of Counter-Terrorism, with support from countries such as the Philippines, focused on bolstering collaboration between international partners and African Member States impacted by terrorism.

Ambassador Mellejor highlighted the Philippines’ support for the United Nations Joint Appeal for Counter-Terrorism in Africa, recognizing it as a crucial instrument in addressing complex and emerging threats strategically, innovatively and jointly through multi-partner initiatives. “We welcome the commitment by the United Nations to deliver prioritized, strategized and joined-up support through multi-partner initiatives under the UN Joint Appeal for Counter-Terrorism in Africa. The Joint Appeal can be a helpful instrument for ensuring streamlined and coordinated support from funding partners and UN entities,” stated Ambassador Mellejor.

During the meeting, the Philippines reaffirmed its dedication to enhancing multilateral cooperation in the fight against terrorism in all its complexity. The Philippines also expressed its readiness to share its own experiences with the peoples and governments of Africa through country-led and country-owned solutions which includes adopting landmark national legislations to strengthen institutional capacities to prevent and combat terrorism.

Additionally, the Philippines’ commitment to an inclusive, transparent, people-centered, and human rights-based peace and security policy was underscored. This commitment is guided by the Philippine Development Plan.

The Philippines highlighted its strategic cooperation with the UN through the recently signed Philippines-United Nations Cooperation Framework, which sets out the areas of cooperation for 2024 to 2028. This Framework provides a strategic direction for joint PH-UN activities, including those within the mandate of the UN Office of Counter-Terrorism (UNOCT). The Framework was signed by Under-Secretary-General Vladimir Voronkov, on behalf of the UNOCT and was witnessed by Philippine Permanent Representative to the United Nations in New York, Ambassador Antonio M. Lagdameo.

The High-Level meeting in Abuja served as a platform for the Philippines to further engage with partners in Africa and around the world, as well as the UN, to strengthen international cooperation to prevent and combat terrorism in all its forms and manifestations.

Distributed by APO Group on behalf of Department of Foreign Affairs, Republic of the Philippines.

In its ongoing commitment to establish factoring as a viable financing solution for Africa’s small and medium-sized enterprises (SMEs), thus bolstering their participation in intra-regional trade and industrialisation, the African Export-Import Bank (Afreximbank) (www.Afreximbank.com) and FCI recently held a two-day factoring conference in Harare.

Centred on the overarching theme of “Empowering Economic Growth Through Innovative Factoring and Receivables Finance Solutions” and the sub-theme of “How factoring can serve as a catalyst for the financial inclusion of SMEs,” the two day workshop that was held on April 22 – 23, focused on the pivotal role SMEs are poised to play in intra-African trade under the African Continental Free Trade Agreement (AfCFTA). Co-organised in collaboration with FCI, the global body for factoring, the conference provided a platform for in-depth discussions and strategic initiatives to promote and enhance factoring within the Southern Africa region.

Speaking at the opening ceremony, Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank, Afreximbank, and FCI Board member, said:

“Factoring provides an important alternative to other traditional financing sources available for SMEs such as bank loans, leasing, venture capital. And while factoring is globally acknowledged as an alternative form of financing to SMEs as evidenced by the EUR 3.7 trillion global factoring volumes, a recent study by Afreximbank on the financing schemes employed by SMEs in Africa showed that only 90 of the 2,895 sampled (representing 9.2 percent), used factoring as a financing option. This is instructive for two reasons. Firstly, it shows that factoring has not yet taken off to the extent that it should, with Africa accounting for less than 1 per cent of global factoring volumes. Secondly, and perhaps more importantly, it demonstrates the huge potential factoring holds for our continent.”

She highlighted the contribution of Afreximbank in developing a model law that has since been adopted by seven countries, the provision of over US$100 million in financing, technical training to over 30 emerging factors in 2022/23 and over 3,000 delegates being exposed to awareness of factoring, with the sum effect of double growth in factoring volumes in Africa from EUR 21.6 Billion in 2017 to EUR 41.8 Billion in 2023. She added however that, despite the steady progress we have made in growing factoring, there remains substantial work to cover given the over US$330 billion SME finance gap per annum and overall factoring volumes of 1% in Africa.

“It is in this context that the theme for the workshop is not only relevant, but also timely, reflecting both the urgent need to grow factoring, and at the same time, highlighting the potential of factoring in promoting economic growth in Africa – as seen in Europe and America.” Mrs. Kanayo added.

Also speaking, Neal Harm, Secretary General, FCI, said: “Open account trade finance (Factoring, Supply Chain Finance) is one of the most crucial financial services that can assist the growth of SMEs and their local economy. It provides the necessary liquidity to SMEs by converting their accounts receivables or invoices into cash. There is so much opportunity to fill the trade finance gap that exists across the globe through Factoring and Open Account Trade Finance. The World Trade Organization recently reported a US Dollar 2.5 trillion trade finance gap – much of which is with SMEs and emerging markets. But receivables are a very strong and a reliable asset that is self-liquidating.  Factoring, Open Account, and Reverse Factoring are tools that can generate working capital to allow SMEs to grow.”

Harm also presented the just released preliminary World Factoring Statistics showing that the steady growth of factoring in Africa continues, with 2023 witnessing a notable 13.5% increase compared to 2022, reaching a total volume of EUR 47.48 billion. This figure however represents a paltry 1.3% of the global factoring volume of EUR 3.7 million.

In her remarks, Dr. J.T. Chipika, Deputy Governor of the Reserve Bank of Zimbabwe, said: “The Factoring Conference comes at the right time, not just for Zimbabwe but also for Southern Africa to reflect and consider how best we can tap into the global and regional best practice in unlocking sustainable finance provided through factoring. Africa, as a continent can do better in promoting both international trade and factoring. We are grateful to Afreximbank who continue to support factoring in Southern Africa, including in Zimbabwe, where two-thirds of the Gross Domestic Product (GDP) is from SMEs and 60% of SMEs are women-owned, making factoring a gender- inclusive agenda.”

 She acknowledged that the Workshop comes hot on the heels of Zimbabwe’s new monetary policy framework introduced this month, and very timely in attracting 24 African countries and nine others to showcase the new Zimbabwe and its economic resilience. Afreximbank’s continuing support was recognised as a backbone for the Zimbabwean economy especially during its financial exclusion from capital markets.

The Deputy Governor further emphasised that factoring and receivable financing will only thrive in a stable macroeconomic environment “hence the importance of Afreximbank’s support to Zimbabwe towards attaining macroeconomic stability, especially in prices and exchange rates.”

Factoring Roundtables will be organised on the sidelines of the Afreximbank Annual Meetings to be held in Nassau, The Bahamas during June 12-15, 2024, FCI Annual Meeting in South Korea during June 9-13, 2024, and the Factoring Seminar during the Afreximbank Annual Trade Finance Seminar to be held in Namibia from June 1 – 4, 2024.

Distributed by APO Group on behalf of Afreximbank.

Afreximbank Media Contact:
Vincent Musumba
Manager, Media Relations
Email: press@afreximbank.com
Tel: +20 2 24564100 /1/2/3
Mobile : +201030121123

FCI Media Contact:
Gwendoline de Viron
Head of Marketing&Communication
Email: deviron@fci.nl
Mobile/WhatsApp: +32 478 98 43 34

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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

For more information, visit: www.Afreximbank.com

About FCI:
FCI is the Global Representative Body for Factoring and Financing of Open Account Domestic and International Trade Receivables. FCI was set up in 1968 as a non-profit global association. With today close to 400 member companies in more than 90 countries, FCI offers a unique network for cooperation in cross-border factoring. Member transactions represent on average 50% of the world’s international correspondent factoring volume.

FCI is a non-exclusive organization, open to any company which is providing Factoring Services or plans to set up Factoring Activities but also to service providers to the industry.

FCI offers three major areas of activities:

CONNECT: the Business network supports cross-border factoring activities through which its members cooperate as export and import factors
EDUCATE: FCI promotes and develops best practices in both domestic and international factoring and related Open Account Finance products
INFLUENCE: FCI promotes and defends the industry with stakeholders and policy makers worldwide

www.FCI.nl  |  fci@fci.nl

To celebrate World Malaria Day, Ambassador Bryan Hunt today joined President Julius Maada Bio and senior government officials to launch Sierra Leone’s National Malaria Vaccines Campaign. The campaign supported by the U.S. Government through USAID aims to prevent malaria in children and help reach Zero Malaria in the country.

With the support of the U.S. Government, over 4.1 million nets, 4.3 million fast-acting medicines and 4.3 million tests have been delivered to clinics and communities in Sierra Leone. We have supported training for more than 25,000 health care providers to detect and treat malaria cases hence providing lifesaving care for their communities, and over 1.5 million people have been protected by spraying their homes with insecticide.

Thanks to our partnership with the Ministry of Health and other donors, the prevalence of malaria decreased among children from 40 percent in 2016 to 22 percent in 2021.

Distributed by APO Group on behalf of U.S. Embassy in Sierra Leone.