African Union (AU) says a $15 Billion Private Sector Venture needed in a bid to Insulate Assurance of an addend in Local Manufacturing of Mineral Fertilizers in Africa the African Union divulges

By Abdul Rahman Bangura-

Great Africa
Photo Credit: AU

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The bloc disclosed via its website on May 6th, 2024 that, regional cooperation in fertilizer policy, research, and development as well as investment pooling for production capacity will facilitate cross-border trade in Africa. And the AU schedules to add local production of mineral fertilizers by 2033.

The statement partially reads, “A significant $15billion of private sector investment will be needed to increase the local manufacturing of mineral fertilizers.” For increased impact, the catch is to triple the local production of organic and inorganic fertilizers by 2033.“

Consolidation of financial tools like trade credit guarantees, working capital, and targeted subsidies is therefore necessary in order to minimize market distortions, lower expenses, encourage innovations and fortify input supply chains.”

…by way to recall the poor productivity of the African soils, the Heads of States and Governments of the AU approved the Abuja Declaration on Fertilizer for the Africa Green Revolution in June 2006.The declaration recommended “raising the use of fertilizers from 8kg/(nutrients)/ha to 50kg (nutrients) /ha in 10 years and the establishment of an African Fertilizer Financing Mechanism (AFFM) with the objective of improving agricultural productivity by providing financing required to boost fertilizer use in Africa to achieve the target of 50kg of  nutrients per hectare, as mandated by the Abuja Declaration.”

Thus, the union exhorted real participants to identify local organic sources that can be levelled locally to manufacture and integrate fertilizers by way to minus dependency on world markets while decreasing the supply chain.

In addendum, “The target is that by 2033, at least 70% of the farmers in Africa should be linked to accessible and affordable input markets as well as agricultural extension services. ” The Landmass has diverse good testaments to share and is bogously and collectively addressing the issues under its 50- year development plan, Agenda 2063. “Africa is the only continent endowed with natural ingredients that can easily be used to greatly expand agricultural production.“ Africa has 60% of the world’s available arable land, the largest share globally, and suitable for agricultural production expansion, and abundant untapped water resources. Agriculture is the source of livelihood for 70% of the population on the continent. “

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent