AGRA

In a world where the demand for food continues to rise, ensuring the availability and effective use of fertilizers has never been more critical.Fertilizer Subsidy Programs (FSPs) are designed to address systemic flaws that limit fertilizer access and availability, subsequently harming soil health and diminishing food system performance.By lowering costs, boosting yields, and improving fertilizer use efficiency, FSPs drive innovations that elevate farmer incomes, enhance livelihoods, and bolster food security.

When managed well, FSPs also promote sustainable farming practices, enhancing soil structure, fertility, and microbial activity in the long run.In 2016/17, AGRA conducted a comprehensive assessment of the marketing and distribution systems for farm inputs, primarily fertilizers, in 11 countries—Burkina Faso, Ethiopia, Ghana, Kenya, Malawi, Mali, Mozambique, Nigeria, Rwanda, Tanzania, and Uganda. This assessment resulted in country-specific recommendations aimed at refining the design of FSPs.

A recent review of the FSPs implemented in these 11 countries between 2007 and 2022 highlights the extent to which these programs have integrated AGRA’s 2016/17 recommendations.The review reveals significant gaps and challenges in the design and delivery of FSPs, providing valuable insights and recommendations for policy and investment aimed at enhancing FSP effectiveness in Africa.

Some of the recomedation that were provided were, that an effective FSP Design is key in stimulating new demand and support the growth of existing fertilizer supply chains without displacing commercial sales. It also, encourage competition within fertilizer distribution channels to promote efficiency. Be temporary, with clearly defined exit strategies.

AGRA’s recommendations were both short-term and long-term, aiming to enhance FSP effectiveness by clarifying objectives, eligibility criteria, targeting, exit strategies, and monitoring and evaluation (M&E) systems in the short term. In the long term, AGRA encouraged the replacement of input subsidies with other forms of support.

These recommendations were grouped into three main clusters:

• Program Clarity and M&E Systems: Improving program objectives, eligibility criteria, graduation and exit strategies, and strengthening M&E frameworks.
• Soil Health Linkages: Scaling soil testing and nutrient deficiency mapping, and boosting local production and blending capacity for soil and crop-specific input packages.
• Long-term Agricultural Investments: Aligning FSPs with broader agricultural and rural development investments, such as agricultural R&D, extension services, and infrastructure.
• Implementation Levels Across AGRA Focus Countries: Between 2018 and 2022, Mozambique and Uganda demonstrated the greatest implementation progress, while Burkina Faso, Kenya, Mali, and Tanzania showed limited uptake. Ghana, Malawi, and Rwanda displayed moderate to strong implementation of AGRA’s recommendations.

The journey to revamp FSPs is ongoing. By integrating AGRA’s strategic recommendations, countries across Africa can improve the design and delivery of these programs, ultimately driving sustainable agricultural practices and ensuring food security. Through thoughtful policy and investment, FSPs can serve as catalysts for positive change, fostering innovation, competition, and long-term soil health improvements that benefit farmers and communities alike.