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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

The Global Agriculture & Food Security Program (GAFSP) is dedicated to fighting hunger, malnutrition, and poverty in low-income countries by supporting resilient and sustainable agricultural systems that benefit and empower poor and vulnerable smallholder farmers. Since its inception in 2010, GAFSP has received contributions totaling $1.7 billion from Australia, the Bill & Melinda Gates Foundation, Canada, Germany, Ireland, Japan, the Netherlands, Norway, South Korea, Spain, the United Kingdom, and the United States, with funds going to countries that have strategic, innovative, and credible plans already in place to improve agricultural productivity and food security.

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