According to the African Union (AU), a $15 billion investment from the private sector is needed to ensure that the production of mineral fertilizers in Africa would expand locally.
The union made this known in a May 6, 2024, statement that was posted on its website.
The group clarified that cross-border commerce in Africa will be facilitated by regional collaboration in fertilizer policy, research and development, and investment pooling for production capacity.
By 2033, AU intends to boost the regional output of mineral fertilizers.
The statement said, in part,
“To boost local production of mineral fertilizers, a sizeable $15 billion in private sector investment will be required.”
“The goal is to triple the local production of organic and inorganic fertilizers by 2033 for accelerated impact.”
“Therefore, to reduce costs, promote innovation, strengthen input supply chains, and limit market distortions, consolidation of financial tools such as trade credit guarantees, working capital, and targeted subsidies is required.”
Remember that in June 2006, the Heads of State and Government of the African Union adopted the Abuja Declaration on Fertilizer for the Africa Green Revolution to improve the low productivity of the continent’s soils.
The declaration called for “the establishment of an African Fertilizer Financing Mechanism (AFFM) to improve agricultural productivity by providing financing required to boost fertilizer use in Africa to achieve the target of 50 kg of nutrients per hectare, as mandated by the Abuja Declaration, as well as raising the use of fertilizers from 8 kg/(nutrients)/ha to 50 kg (nutrients)/ha in 10 years.”
Overreliance on the international market
The AU criticized Africa for its exceptional reliance on the world market, pointing out that if the necessary collaboration materializes, the continent may become self-sufficient.
It argued that to reduce the distances that African farmers must travel to obtain fertilizer and other essential agricultural inputs, the continent’s last-mile delivery system has to be expanded.
The union did, however, counsel interested parties to locate nearby organic resources that could be used to produce and mix fertilizers locally, thus reducing over-reliance on international markets and expediting the supply chain.
It further stated,
“The goal is to have affordable, easily accessible input markets and agricultural extension services available to at least 70% of African farmers by the year 2033.”
“The continent is actively and collaboratively addressing the issues under its 50-year development plan, Agenda 2063, and has many success stories to share.”
“The only continent with naturally occurring ingredients that can be readily utilized to significantly increase agricultural production is Africa.”
“Africa contains 60% of the world’s available arable land, the biggest percentage internationally, which is appropriate for agricultural production expansion, as well as rich untapped water resources. Agriculture supports 70 percent of the continent’s inhabitants.”
The World Bank report from 2022 that revealed the irregularities connected to African agricultural products is in line with the AU’s request.
According to the paper, even though Africa generates twice as much fertilizer as it uses—roughly 30 million metric tons annually—90% of the fertilizer used, particularly in Sub-Saharan Africa, is imported from outside the continent.
However, the AU claims that it will host a summit on soil health and fertilizer in Africa, where participants will discuss ideas for bringing about an agricultural revolution.
