Over 550,000 smallholder farmers across Tanzania are poised to benefit from a newly launched $2 million Partial Trade Credit Guarantee (PCG) initiative aimed at enhancing access to quality fertilizers through an innovative public-private financing model.
The programme, launched on August 7, 2025, during the Nane Nane Agricultural Exhibition in Nzuguni, Dodoma, is expected to significantly ease fertilizer supply constraints by enabling small and medium-sized agro-dealers to access fertilizer stocks on credit and deliver them to farmers on time.
The PCG initiative is a collaborative effort involving the African Fertilizer Financing Mechanism (AFFM), the Tanzania Fertilizer Regulatory Authority (TFRA), and the African Fertilizer and Agribusiness Partnership (AFAP), which serves as the implementing partner.
Speaking during the launch, Dr Stephen Nindi, Deputy Permanent Secretary at the Ministry of Agriculture responsible for Crop Development, Food Security, and Cooperatives, said the initiative reflects the government’s strong commitment to empowering farmers at the grassroots level by linking them to inclusive financial solutions in partnership with the private sector.
“This programme leverages the private sector to strengthen fertilizer access. Dealers will receive fertilizers on credit while equipping farmers with essential knowledge on their effective use,” Dr Nindi said.
According to TFRA, the current phase of the project builds on the successes of a similar initiative implemented between 2019 and 2022.
The new phase shifts focus toward scaling up production, improving national food security, and catalysing further private-sector investment in agriculture.
TFRA Executive Director Joel Laurent said the initiative aligns with Tanzania’s strategic vision for transforming its agricultural sector and resonates with broader continental commitments to food systems transformation.
“This is not just about reducing risk in agriculture; it’s about unlocking private sector capital and ensuring that smallholder farmers who form the backbone of Tanzania’s food system can increase productivity and resilience,” said Laurent.
He added that the launch is in line with the policy direction set out in the Nairobi Declaration following the 2024 Africa Fertilizer and Soil Health Summit, which calls for a threefold increase in access to quality fertilizer across the continent over the next decade.
Under the new PCG arrangement, AFFM has committed $2 million as a financial guarantee to help small and medium-scale fertilizer dealers obtain products on credit from major distributors.
The risk associated with this credit will be jointly shared between AFFM and the large-scale suppliers.
“This mechanism will bridge a critical financing gap in the fertilizer supply chain, particularly for last-mile dealers,” said Marie Claire Kalihangabo, Project Coordinator at AFFM.
The project is expected to engage three large fertilizer distributors, approximately 30 mid-sized agro-dealers, and over 1,000 retail-level sellers.
Collectively, they are projected to supply at least 60,000 metric tonnes of fertilizer to farmers over the next 36 months.
Kalihangabo further noted that AFAP, as the implementing partner, will receive $528,600 to support the execution, monitoring, and technical assistance required to ensure effective project delivery.
Beyond direct fertilizer access, stakeholders say the PCG initiative will have ripple effects across the agricultural value chain, contributing to better yields, improved livelihoods, and enhanced food security especially at a time when input costs remain a major barrier for small-scale producers.
Laurent also applauded AFFM for its continued partnership, including its active role in the 2025 Nane Nane exhibition where it has established an informative booth within the Fertilizer Village to engage and educate stakeholders on ongoing fertilizer access programmes.
The PCG initiative is part of Tanzania’s broader commitment to agricultural transformation, positioning the country to play a key role in the continent’s ambition to build sustainable, productive, and climate-resilient food systems.