Practices and Policy Options for the Improved Design and Implementation of Fertilizer Subsidy Programs in Sub-Saharan Africa
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Date
2013
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Abstract
Following the 2006 Abuja Declaration on Fertilizer for an African Green Revolution, and with further impetus provided by the 2007/08 soaring food, fuel and fertilizer prices, African leaders put forward a political commitment to arrest land degradation and improve crop productivity by increasing fertilizer use to at least 50 kilograms per hectare (kg/ha) of arable land. Toward this commitment, several Sub-Saharan Africa (SSA) governments implemented fertilizer subsidies as a way to boost food production. While prices for fuel and fertilizers since the crisis have declined, those of food have merely stabilized, and remain at higher levels than pre-2007 prices. Despite this, it is likely that African governments will continue to subsidize fertilizer use by small and subsistence farmers for the foreseeable future. However, some analysts fear that the recent resurgence of fertilizer subsidies will erode past efforts and achievements in private sector fertilizer supply market development in SSA. In order to objectively intervene and support countries in SSA regarding the successful design and implementation of their fertilizer subsidy policies and programs, the African Union (AU)-New Partnership for Africa’s Development (NEPAD) Coordinating Agency (NPCA), with technical and financial support from the Food and Agriculture Organization of the United Nations (FAO), the International Fertilizer Development Center (IFDC) and the Alliance for a Green Revolution in Africa (AGRA), commissioned this study: Practices and Policy Options for the Improved Design and Implementation of Fertilizer Subsidy Programs in Sub-Saharan Africa. The objective of the study is to identify major issues affecting the implementation of these subsidy programs and make recommendations to improve their management and implementation. It is believed that this study will assist in bringing about a more positive impact according to most countries’ implicit and/or stated general objectives of increasing agricultural production, food security and rural incomes. The output of the study will be a set of recommendations in relation to: (1) the key lessons learned and identification of best practices; (2) key findings regarding the implementation of fertilizer subsidy programs in SSA; and (3) policy recommendations for the successful management and implementation of fertilizer subsidy programs.
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Keywords
Fertilizer, Fertilizer