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.