Agriculture Reference
In-Depth Information
TABLE 3.2
Policy Constraints and Suggested Actions for Developing Competitive
Fertilizer Markets in Sub-Saharan Africa
Policy Constraints
Suggested Action through Country or Regional Efforts
Regulatory architecture
Develop, update, and enact Fertilizer Law by country and also harmonize
regionally among and between regional economic communities (RECs)
(simultaneously) with the help of national and international experts
Build enforcement capacity: human, analytical laboratories
Market interventions and
price controls
Remove restrictions on import participation
No import tenders
No restricted entry to subcountry markets
Transition to private sector imports
Remove pan-provincial pricing and price controls
Fiscal issues—tax and
tariffs
Remove withholding and value-added tax, etc.
Zero tariff for RECs external trade
Access to finance
Legalize land property rights/long-term leases
Mitigate risks (credit guarantees/risk-sharing, contracts, group lending);
public-private partnerships framework
Outdated fertilizer
recommendations
Soil testing and fertilizer trials
Regional/mobile laboratories
Blending services (to meet nutrients)
Regional information networks
Knowledge (agro-dealer training, farmer extension)
Port
Replace, repairs
Twenty-four-hour service
One-stop window
Inland haulage (rail,
road)
Repair, build
Agree on axle load charges
Reduce road stops and weighbridges
Reduce border barriers (delays)
Source:
IFDC. 2013a. Developing competitive fertilizer markets in Sub-Saharan Africa: Policy and non-
policy solutions. Paper presented at the Technical Convening on Seed and Fertilizer Policy in
Africa, Addis Ababa, Ethiopia, December 5-7.
best served by elimination of direct government intervention in agro-input markets.
However, market liberalization is not enough. It must be accompanied by a reliance on
the private sector to play the leading role in the supply of inputs and the recognition
that governments' crucial role is to provide supporting public goods and services and
to create conducive policy, legal, and regulatory environments (IFDC 2000).
During the transition period when governments morph from actors to facilitators,
farmers and agro-input dealers must organize themselves to create economies of scale in
agro-input procurement, gain access to credit and productivity-enhancing technologies,
and prepare to advocate for policies that support agricultural development. Consistent
efforts must be made to improve the technical and business knowledge of the private
