US International Development Finance Corporation (DFC) Due Diligence and Learning Journey to South Africa and Tanzania

01 Aug 2023

The US International Development Finance Corporation (DFC) recently embarked on a due diligence trip to both the AFAP Headquarters in South Africa and the AFAP Tanzania country office.

The purpose of the trip was part of DFC’s due diligence appraisal of AFAP and part of their consideration of AFAP for a guarantee in support of AFAP’s Trade Credit Guarantee Provisioning Program.  The trip also included a learning journey to Tanzania to engage with stakeholders involved in AFAP’s most recent trade credit guarantee provisioning program which was undertaken with support from the African Development Bank’s Africa Fertilizer Financing Mechanism.

The learning journey included supplier visits and visits to hub agro-dealers who were involved in the AFFM program. These suppliers and hub agro-dealers were illustrative of those that are being considered for the prospective DFC program, which will be undertaken in three other countries (to be determined). The Tanzania visit included meetings with three suppliers (Yara Tanzania, OCP Tanzania, and Guavay Company Limited) and two hub Agro-dealers in the Mafinga district (Fideline Mahenge and Emanuel General Supply).

Following the informative and due diligence-oriented visit, AFAP continued working to provide the additional information requested by the DFC, so that DFC can conclude their assessment of AFAP and determine if it will go ahead with the proposed guaranty transaction.