The Zambia Co-operative Federation (ZCF) for farmers recently received 1,500t of fertilizer under its e-voucher scheme. The Government of Zambia is investing approximately USD210m into the scheme that enables smallholder farmers to purchase agricultural inputs (fertilizer, seed, pesticides, equipment).
Under the e-voucher scheme, the Zambian Government provides farmers with a voucher with a value that is used to buy agricultural inputs from specified, government approved outlets. The delivery is part of a fertilizer supply agreement where African Potash (AIM: AFPO) will supply fertilizer to ZCF for a minimum period of three years and further trades are anticipated in the coming months.
Chris Cleverly, African Potash Executive Chairman, said: “African Potash, together with our trading partners, are strong supporters of the E-Voucher Scheme and recognize the potentially ground-breaking implications for the agricultural development of Zambia which can be delivered through its execution. With our partners at COMESA, we are creating a sustainable model for the agricultural sector in Zambia and the region”.
Under the agreement ZCF is responsible for logistics and transport, while fertilizers are owned by commodity management firm Gavilon, until payment is received from ZCF under the e-voucher scheme.
African Potash would then expect to receive a margin payment from Gavilon of approximately USD65 per ton of fertilizer sold
