Salutations
Prof. O. Jiri, Permanent Secretary for Lands, Agriculture, Fisheries and Water Development, Zimbabwe,
Distinguished Governing Council members, AfDB, and AFFM team.
I am delighted to welcome you to the 14th session of the Africa Fertilizer Financing Mechanism (AFFM) Governing Council.
On behalf of the African Union Commission Chairperson, His Excellency Mahamoud Ali Youssouf, I extend our most profound appreciation to the African Development Bank Group for its unwavering support and collaboration, particularly in housing and managing AFFM.
In 2024, African countries reported significant increases in agricultural production, with overall gains reaching up to 30% compared to the previous year. Rice and wheat production have been promising. This improvement was crucial for enhancing food security across the continent, particularly following obstacles like the El Niño phenomenon in Southern Africa that had adversely affected yields. The return of fertilizer prices to pre-pandemic levels further stimulated this recovery. East Africa benefited from above-normal rainfall, contributing to an overall production increase and emphasizing a revitalization trend in the sector.
Despite advancements in agriculture across Africa, the continent still faces a significant gap between food production and trade balance. While Morocco's OCP Group and Nigeria's Dangote Industries improve fertilizer production, the benefits may take time to appear. Projects in Angola and Egypt aim to increase production further, but Africa's dependency on agricultural imports persists, widening the trade deficit. This imbalance undermines food security and threatens economic stability. About 64% of African nations spend over 40% of their national income on agricultural imports, with one in six countries exceeding 60%. This reliance renders African economies vulnerable to shifts in global commodity prices, exchange rates, and supply chains.
With 60% of the global uncultivated lands, Africa has vast agricultural potential that we all are called to materialize. Therefore, enhancing agricultural productivity is essential for advancing food security and reducing poverty. In Sub-Saharan Africa, the situation is particularly stark, as 80% of farmers apply less than 10 kg/ha of fertilizer. By raising application rates to half the global average, we could significantly increase cereal production—potentially between 1 to 2 tons per hectare—across large expanses of land. This improvement would not only enhance food security but also uplift farmer incomes, making a substantial impact on the region's agricultural landscape.
Achieving this potential necessitates a comprehensive approach beyond fertilizer application. Enhancing quality seed utilization and implementing improved agronomic practices, including crop rotation, timely planting, and irrigation, are essential for yield stabilization and reducing interannual harvest variability, which can reach 40% in some regions.
Consequently, as the Heads of State highlighted in their last Nairobi declaration on fertilizer and soil health, targeted support and tailored financing mechanisms to facilitate farmers' access to quality inputs, mainly organic and inorganic fertilizers, and other health-improving technologies, remain paramount in securing the continent's food sovereignty.
Distinguished Members
For these coming ten years, AFFM, as outlined in the Nairobi Declaration, will expand its scope, aiming to increase fertilizer use and streamline financing across the entire fertilizer supply chain, from production, blending, and distribution to the last mile and use by smallholder farmers in African rural areas. AFFM will also focus on improving soil health for sustainable farming by scaling up its interventions to support the $10bn African fertilizer industry, becoming a regional leader in fertilizer financing. To achieve these ambitious goals and align with Agenda 2063 and the Malabo Declaration, concerted efforts are needed to mobilize resources through key partnerships. Public-Private Partnerships (PPPs) can drive investment and innovation, while international organizations provide expertise and funding. Collaborations with local governments, research institutions, civil society, and farmers ensure tailored, practical solutions, fostering a resilient agricultural sector that supports food security and economic growth.
With a fully functioning AFFM and countries' commitments, I’m confident we will make Africa a food basket and net food exporter, benefiting from conducive initiatives like the African Continental Free Trade Area (AFCTA) and under the overall guidance of the recently adopted CAADP ten-year (2026-2035) Strategy and Action Plan, which aims to build resilient Agri-Food Systems on the continent.
This African development agenda will require strong financing mechanisms led by the African Development Bank, which will play a crucial role through its ten-year and Feed Africa strategies. In that context, I’m delighted to chair this session at this critical transition from the current state of AFFM toward its new form as a fully operationalized AFFM, revamped to improve production, procurement, and distribution of organic and inorganic fertilizers and soil health interventions in our continent. The Heads of State and Government recommended this transition during last year’s Africa Fertilizer and Soil Health Summit held in May 2024 in Nairobi.
The African Union Commission is committed to supporting this transition. May our deliberations during this 14th Governing Council Meeting be fruitful and illuminate the path forward.
Esteemed Members
As I conclude my welcome note, I want to extend my heartfelt gratitude to the outgoing Commissioner, H.E. Ambassador Josepha Sacko, whose leadership has inspired us all and laid a strong foundation for the future. These past eight years have been a collaborative journey, showcasing the incredible achievements we can realize together.
As I step aside, I carry unwavering faith in our shared commitment to propel our continent to its full agricultural potential within the next decade. The path ahead is filled with opportunities, and I am excited to see how we will continue cultivating a future where Africa flourishes. Thank you all for your dedication and vision for our land.
With unwavering optimism, I declare this meeting open. Thank you.
