WEST AFRICA FERTILIZER PROGRAM

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1 International Fertilizer Development Center WEST AFRICA FERTILIZER PROGRAM FIRST QUARTER, JANUARY 2016 USAID WAFP Program Office IFDC North and West Africa Division No. 113A, Mbabane Ave, East Legon Residential Area Accra Tel Fax newsletter For more information about IFDC and this project, please visit tinyurl.com/usaid-wafp A group photograph of participants of the WAFA preparatory meeting at Grand Bassam, Côte d Ivoire on December 9-10, UPCOMING EVENT february, 2016 The seventh argus FMB fertilizer conference brings together 400 delegates (fertilizer producers, buyers, distributors, and essential service providers) from 55 countries. Marrakesh, Morocco. newsletter Sign up for the WAFP quarterly newsletter here: tinyurl.com/wafp-newsletter This newsletter was produced for review by the United States Agency for International Development. It was prepared by IFDC and AFAP. The authors views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. USAID WAFP Initiates Establishment of Fertilizer Traders Association for West Africa The USAID-funded West Africa Fertilizer Program (WAFP), implemented by the International Fertilizer Development Center (IFDC) and with support from the Africa Fertilizer and Agribusiness Partnerships (AFAP), is facilitating the establishment of a regional traders association for all key actors of the fertilizer industry operating in West Africa, including importers, producers, and blenders. The main goal is to create a common platform and an entity that will defend the interest of its members and serve as an effective advocacy medium for interacting with relevant regional institutions. This will help build a supportive and sustainable business and regulatory environment for improved investment in the sector. On December 9-10, 2015, WAFP, with the support of USAID and ECOWAS, organized a preparatory meeting of 39 participants representing 27 fertilizer firms to discuss the need for and approach to establishing an effective West Africa Fertilizer Association (WAFA). According to Martin Drevon, Private Sector Specialist of WAFP, the meeting is a result of a feasibility study commissioned by IFDC and AFAP through WAFP to gauge the interest of fertilizer industry players in having a professional association aimed at helping to address key challenges faced by the sector. The meeting This was attended by representatives of all the major players of the fertilizer industry in West Africa including: Tak Agro, Notore and Golden Fertilizers (Nigeria); CIPAM, Tropic Agro and Fasofert (Burkina Faso); SOAPAM S.A. (Niger); Ndorama/ICS, Agrophytex, TSE and SEDAB (Senegal); Toguna Industries, Sogefert, Somadeco, Sangoye, DPA, Elephant Vert and SAD (Mali). Also attending were representatives of OCP, Yara, LDC and Agro West Africa, OLAM & Timac Agro (Côte d Ivoire); and Compagnie d Intrants Agricole du Togo (CIAT) from Togo and ETG from Benin. After a brief presentation by Binta Ceesay-Etim of AFAP on the results of a feasibility study on the formation of the association, Manon Dohmen of Knowledge and Skills Limited presented certain important issues that need consideration when

2 Members of the Technical Working Group tasked to put in place mechanisms for the establishment of WAFA. (We must) carefully assess what the prevailing situation is in the industry, know why we want to create this association (WAFA) and what change we desire to work together to bring about. Manon Dohmen, knowledge & skills limited setting up an association of the nature of WAFA. She emphasized, among other things, that the formation of an association is not meant to divide the market and compete against each other but to support each other and to grow the market for mutual benefits. She underscored the need to carefully assess what the prevailing situation is in the industry, know why we want to create this association and what change we desire to work together to bring about. Objectives and Expectations Participants were put into groups to discuss key objectives and expectations they would want the association, when formed, to address. The five groups were unanimous on three major areas: the quality of fertilizers imported, produced and distributed in the region; facilitation of fertilizer trade across the region; and access to finance to encourage investment in the fertilizer business. Specific goals included the following: Quality control of fertilizer upon entry to countries and at distribution level as well as adoption of ECOWAS quality control regulations and their compliance by member states. New approaches to allow adapted fertilizers to be introduced. Fertilizer firms are convinced the old fertilizer recommendations don t respond to known soil and crop needs and want to develop a new approach in collaboration with governments. Development of infrastructure in the sub-region. Poor infrastructure (roads, ports, warehouses) in the sub-region is a significant limiting factor for firms operating in West Africa. Road networks and quality of roads greatly impact the farm-gate price of fertilizer due to high transportation costs. Standardization/harmonization of taxes and other costs related to import. Although firms are operating in the same ECOWAS environment, taxes vary from country to country. Review of taxes on logistics and other fertilizer production and distribution equipment. Review of bank interest rates and borrowing charges. Some discussions between the fertilizer association, banks, and public authorities must be initiated. Establishment of a Technical Working Group The meeting culminated in the establishment of a five-member Technical Working Group (TWG). Members of the TWG are tasked with the responsibility of incorporating the vital objectives and expectation from the group discussions into a roadmap that will lead to the eventual establishment of the association in the shortest possible time. The TWG was also tasked to come up with proposed mission, vision and structure of the association for validation by all prospective and interested members of the association before the requisite steps are taken to formally register the association. The assembly also nominated a coordinator who will facilitate the work of the TWG and will be supported financially by WAFP.

3 ROADMAP developed FOR the IMPLEMENTATION OF ecowas FERTILIZER REGULATIONS IN MALI A roadmap expected to lead to the implementation of national and regional fertilizer regulations in Mali has been developed at a twoday workshop in Bamako. The workshop, organized by USAID West Africa Fertilizer Program (USAID WAFP) and implemented by IFDC, brought together technical experts from IFDC, staff of the Direction National d Agriculture (DNA) of the Ministry of Rural Development (MDR) and representatives of l Institut d Economie Rurale (IER) to deliberate on the state of the fertilizer sub-sector in Mali and how to improve quality control. The workshop is one of the results of an agreement between IFDC and DNA to collaborate and facilitate the implementation of regional fertilizer regulations in the country in the wake of an influx of nutrient-deficient fertilizers experienced during the 2014/2015 cropping season. The main objective of the workshop was to develop a roadmap that takes into account the four key areas of the collaborative agreement seeking to address the various challenges faced by the fertilizer industry in Mali. These areas of collaboration include: training for DNA staff in the Ministry of Rural Development of Mali on fertilizer quality control; exploring possible avenues to equip the laboratory of the DNA; review of Malian procedures/laws relating to fertilizer quality control and their alignment to regional fertilizer regulations; and review of fertilizer quality control tools and provision of laboratory equipment for LABOSEP located at IER. the Workshop To set the appropriate context for the development of the roadmap, day one of the workshop was devoted to presentations updating participants on the fertilizer regulatory situation in Mali highlighting USAID WAFP/IFDC interventions in the country. In an official opening address, the representative of the Director-General of DNA Mr. Demba Diallo underscored how sensitive fertilizer-related issues have become in Mali adding that, it is common knowledge that quality fertilizer is very key to increased agricultural productivity and hence the need to pay attention to regulating and controlling the quality of fertilizers sold and used in Mali. He further expressed his outfit s gratitude to USAID WAFP and IFDC for responding positively to Mali s call for support and reiterated their readiness to fully cooperate and collaborate with the project in order to effectively address the challenges of the fertilizer sector in Mali especially in the light of the four areas spelled out in the request to IFDC. On the part of USAID WAFP and IFDC, Deputy Chief of Party Mr. Djimasbe Ngaradoum underscored the project s commitment to providing the requisite technical support in the spirit of the agreement. The workshop is the first giant step into this process. He explained, this workshop falls within the framework of the ECOWAS mandate to USAID WAFP and IFDC to take technical leadership in fertilizer-related issues within the ECOWAS region, including supporting member states to implement harmonized regulations on quality control. The head of the legislation and control division of the DNA, Mr. Seydou Sanogo, presented an overview of the current state of fertilizer regulations in Mali. He mentioned among other things that fertilizer quality control in Mali was initiated in 2008 in conformity with provisions of Law No of 28th February, and that the DNA is the body given the mandate by the country s constitution to enforce it. According to Mr. Sanogo, there are currently five national instruments regulating fertilizer quality related activities in addition to the ECOWAS Regulation C/REG.13/12/12 on fertilizer quality control which was published in the official gazette of Mali on March 28, Mr. Sanogo also touched on some of the This workshop falls within the framework of the ECOWAS mandate to IFDC/USAID WAFP to take technical leadership in fertilizer-related issues within the ECOWAS region including supporting member states to implement harmonized regulations on quality control. Mr djimasbe ngaradoum, deputy chief of party, USAID WAFP. The DCOP of WAFP, Mr. Djimasbe Ngaradoum, presenting an overview of WAFP activities in West Africa to workshop participants.

4 Mr. Emmanuel Alognikou, WAFP Policy Specialist, leading discussions during the workshop. It is common knowledge that quality fertilizer is very key to increased agricultural productivity and hence the need to pay attention to regulating and controlling the quality of fertilizers sold and used in Mali. Mr demba diallo, representative of the director of dna challenges preventing them from executing their mandate to the full. These include lack of highly qualified personnel, lack of appropriate equipment and lack of financial resources. USAID WAFP Policy Specialist, Mr. Emmanuel Alognikou took the opportunity to educate participants on the activities the project is embarking on which are geared towards assisting ECOWAS member states to develop complementary regulations and implement the regional regulatory framework of fertilizer quality control. These activities include: publishing the regional regulations in official national gazettes; production and disseminations of brochures and leaflets on key aspects of the regulations; organizing and facilitating regional workshops to share knowledge and experiences on the principal steps and requirements for their adoption and implementation; and facilitating the establishment of national and regional committees on fertilizer quality control. These presentations were interspersed with discussion sessions that enabled participants and facilitators share ideas on and find solutions to teething issues affecting fertilizer quality control in Mali. The discussions resulted in the identification of three additional areas the USAID WAFP/IFDC and DNA/MDR-Mali collaboration should also address. These additional areas include: the use of electronic platform for the tracking of Malian fertilizer subsidy program; compilation and dissemination of existing data/information on the fertilizer subsidy program in Mali; and support for the production of West Africa fertilizer recommendations map. the roadmap The presentations and extensive discussions during the workshop paved the way for the development of a roadmap outlining specific activities to be undertaken to lead to the implementation of the ECOWAS fertilizer regulations in Mali. The 16-point roadmap includes timelines for each activity as well as the organizations and partner institutions responsible for undertaking each activity. Notable among these activities are the publication of the Implementing Regulations of the ECOWAS legal framework on fertilizer quality control in the official journals of Mali to be ensured by the DNA by March The DNA is also expected to pursue sensitization campaigns to educate all key stakeholders in the fertilizer industry on the national and regional fertilizer regulations starting from January USAID WAFP and IFDC will produce and make available to the Malian fertilizer regulatory authorities informational and educational materials such as brochures, leaflets, guidelines and sensitization scripts on the legal framework and its implementation regulations. The roadmap also includes a review of the existing laws regulating fertilizer quality control in Mali and differences to address in the process of harmonizing them with that of ECOWAS by March This activity is expected to be spearheaded by the DNA and IER with the collaborative support of USAID WAFP and the Alliance for Green Revolution Africa (AGRA).

5 Mr. Alain Sy Traoré of ECOWAS leading discussions during the meeting. At left and right are representatives of IFDC and USAID respectively. To improve fertilizer supply in rural areas, human capital needs to be developed and access to finance and market information be strengthened. Effective enforcement of regulatory frameworks is essential so that honest dealers are not crowded out by unscrupulous traders. D. I. Gregory and B. L. Bumb, IFDC ADVISORY COMMITTEE Set up FOR USAID WEST AFRICA FERTILIZER PROGRAM Dakar, November 20, 2015 A nine-member Advisory Committee (AC) has been established to provide technical and strategic guidance to the USAID West Africa Fertilizer Program for the remaining project period (October 2015 May 2017). The AC will advise project management on strategies and priorities in the sub-region, such as implementation of the ECOWAS regulation on fertilizer quality control, improvement in administration of fertilizer subsidies and development of the fertilizer industry s private sector. Other responsibilities will be to suggest priority actions for developing programs for WAFP annual activities, assess implementation progress of annual programs compared to the project s monitoring and evaluation plan and serve as a link between WAFP and other regional/bilateral projects for fertilizer sub-sector development. The AC will hold at least two ordinary meetings and any other emergency meetings necessary to assure the project reaches its goal of increased supply and use of quality fertilizers for greater agricultural productivity in West Africa. To fulfill this purpose, the AC brings together representatives of all major regional institutions, including USAID/West Africa, ECOWAS, West Africa Economic and Monetary Union (UEMOA), West and Central African Council for Agricultural Research and Development (CORAF/WECARD) and the Permanent Interstate Committee for Drought Control in the Sahel (CILSS). Other institutions include the West African Information System Network (WAMIS-NET), Network of Farmers and Agricultural Producers Organizations of West Africa (ROPPA) and the two implementing organizations for USAID WAFP: International Fertilizer Development Centre (IFDC) and African Fertilizer and Agribusiness Partnership (AFAP). PROJECT PUBLICATIONS IN PROGRESS The WAFP implementation team presented AC members with drafts of several key publications under development for each project focus area, as advocacy and decision-making tools for all key fertilizer industry stakeholders from both public and private sectors. The publications include the West Africa Fertilizer Business Information Map (WAFBIM) to provide details (locations, production capacities, profiles and distribution channels) on all major fertilizer production and distribution facilities across the region; the Fertilizer Recommendations Map for West Africa Map (FeRWAM) showing major agro-ecological zones, major crops and available fertilizer recommendations. Other products include matrixes showing implementation levels of ECOWAS fertilizer regulations for each member country, and the nature of fertilizer subsidy policies operating in some countries across West Africa. Committee members gave very positive feedback on the products and encouraged the team to work even harder to fine-tune the products. This is exactly what we (ECOWAS) have been waiting for, asserted AC Chairman Mr. Alain Sy Traore.

6 fertilizer statistics A major constraint to technology adoption in much of Africa is the physical unavailability or untimeliness of inputs. Wilfred muangi, cimmyt International Fertilizer Prices through december 2015 (all FOB bulk spot, USD/MT) Fertilizer Type JAN-15 FEB-15 MAR-15 APR-15 MAY-15 JUN-15 JUL-15 AUG-15 SEP-15 OCT-15 NOV-15 DEC-15 1 mo. 1 year N Urea (prilled, Arab Gulf) % -30% N Urea (granular, Indonesia/Malaysia) % -25% N Ammonium Sulfate (China) % -9% N Ammonia (Yuzhny) % -24% P DAP (Baltic/Black Sea) % -16% P MAP (Morocco) % -9% P TSP (Tunisia) % -4% K MOP (Israel) % -9% K SOP (in, North-West Europe) % 5% NPK (FSU) % -8% Copyright 2015 Argus Media Ltd. All rights reserved. For more detailed information and data, visit For more information and market analysis on International Fertilizer Prices please check the statistics section of QUARTERLY REGIONAL FERTILIZER RETAIL PRICE SUMMARY, OCT-DEC 2015 product product BURKINA FASO CôTE D IVOIRE GHANA MALI NIGERIA PRICE UNIT Amm. sulf. dap s Average Prices vs. Average Prices $/ton $/50kg FCFA/50kg 15,480 16,375 16,509 urea $/ton $/50kg FCFA/50kg 16,367 19,875 13,208 17,213 14,500 $/ton $/50kg FCFA/50kg $/ton $/50kg FCFA/50kg 21,222 11,000 18,897 11,000 18,095 11,000 16,730 11,000 $/ton $/50kg FCFA/50kg 5,499 3,410 5,480 3,435 SENEGAL $/ton $/50kg FCFA/50kg 13,679 8,433 11,836 6,700 15,173 8,140 Exchange Rate: BKF-CIV-MAL-SEN= XOF/US$ GHANA= GHS/US$ NIGERIA= NGN/US$ (Source: OANDA.com 01/10/2015 to 30/12/2015) Compiled by USAID WAFP and AfricaFertilizer.org. For more detailed information please contact sduah@ifdc.org.