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GAFSP Invests in Fertiplant to Boost Agriculture across East Africa

A combined $10 million investment to help farmers across East Africa improve their crop yields and income

Challenge

East Africa’s economy is mainly agrarian, with more than 65 percent of its people dependent on agriculture for their livelihoods. Over 80 percent of the food in the region comes from small holders – farmers with less than 2 hectares of land. Many farmers in the region have limited access to high quality fertilizers, due to high costs. Mismatches between fertilizer and crop type, as well as lack of knowledge on fertilizer use compound the problem. Fertilizer application rates in Sub Saharan Africa are far lower than global averages, in some cases, as low as 10 percent of recommended levels. Crop yields and food production suffer as a result.

Solution

In 2017, IFC and the Private Sector Window of GAFSP made a joint $10 million investment in Fertiplant, a fertilizer distributor in the East African region, to develop the nascent Kenyan fertilizer industry. The investment will be used to construct and operate a fertilizer granulation plant in Nakuru, in Kenya’s Central Rift Valley, and will produce 100,000 tons of fertilizer per year. The new plant will supply locally produced fertilizer at affordable prices, helping farmers improve crop yields and their incomes. Better productivity of staple food crops will also be critical to food security in the region, which is currently suffering from drought. The project is expected to create hundreds of new jobs both during construction and operation.

Country

Kenya

Funding

Private

Focus area

  • Fragility

Supervising entity

IFC

Results

Farmers across East Africa will benefit from increased food production

GAFSP’s investment in Fertiplant will contribute to productivity of the local and regional agricultural sector by increasing supply of fertilizers in the East African regional markets at competitive prices. This is expected to benefit farmers through increased food production, hence, improved livelihoods.

Benefits to Kenyan Economy

The development and operation of the new plant in Kenya’s Central Rift Valley will significantly contribute to the country’s overall economic growth. This joint IFC/GAFSP investment is estimated to generate US$4.8 million gross value addition annually, once fully operational.

New employment opportunities in Kenya

The construction of the new fertilizer plant is expected to generate direct and indirect employment opportunities for members of the local Kenyan community both during construction and operation.

Contact

Mr. Niraj Shah

Head, GAFSP Private Sector Window

nshah1@ifc.org Washington, DC

Tel: 202 473 3743


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Work with Us

Launched in 2010, the Global Agriculture & Food Security Program (GAFSP) represents a transformative approach to development aid that pools donor funds to make lasting improvements by supporting technically sound, country-led plans and sustainable, inclusive small- and medium-sized enterprises. The inaugural donors—Bill & Melinda Gates Foundation, Canada, the Republic of Korea, Spain, and the United States—were soon joined by Australia, Germany, Ireland, Japan, the Netherlands, and the United Kingdom. GAFSP’s donors work in partnership with recipients, civil society organizations, and other stakeholders to improve the lives of smallholder farmers and their families. Millions of poor and vulnerable people around the world will directly benefit from GAFSP’s continued commitment and support. GAFSP looks to engage other donors and stakeholders in this important initiative.

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