AFAP Zambia Ramps Up Preparations for Farming Season, Bolstering Input Supply Chain Through Trade Credit Guarantee Program
LUSAKA, ZAMBIA – With the next agricultural season on the horizon, the African Fertilizer and Agribusiness Partnership (AFAP) in Zambia is intensifying efforts to ensure a smooth and timely flow of essential inputs to farmers. A key component of this strategy is the AFAP Trade Credit Guarantee (TCG) program, which is being actively prepared through strategic engagements with leading input suppliers.
The AFAP TCG program addresses a critical bottleneck in the agricultural value chain: access to finance for agro-dealers to stock inputs. By providing guarantees to suppliers, AFAP mitigates the risks associated with extending credit to hub agro-dealers and retailers. This encourages suppliers to provide more inputs on credit, enabling agro-dealers to adequately stock their shops in advance of farmer demand. Ultimately, this mechanism ensures that quality seeds, fertilizers, and other essential inputs are available when and where farmers need them most.
As the next farming season approaches, AFAP Zambia is actively preparing by utilizing its Trade Credit Guarantee (TCG) program to ensure farmers have timely access to essential inputs. This program works by mitigating credit risk for suppliers, thereby encouraging companies like Yara Zambia and FSG to provide inputs on credit and enabling agro-dealers to stock adequately in advance.