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Oliver Kazunga Senior Business Reporter
African Potash has signed a Memorandum of Understanding to supply 150,000 tonnes of fertiliser to the Comesa.
The trading agreement follows the signing of a landmark partnership with the Common Market for Eastern and Southern Africa (Comesa) and the Mask Africa Crowd Farm Fund (MACFF), African Potash exploration firm in August.
The agreement underpins African Potash’s active growth strategy in mining, production and distribution of fertiliser.
“We continue to deliver on our strategy of becoming a significant, vertically integrated fertiliser provider in Africa.
“African farms are only performing at 40 percent of their potential and simple measures such as quality, affordable fertiliser can triple productivity, which, in turn, has the potential to grow Africa economically,” African Potash executive chairperson Chris Cleverly said in a statement.
The first delivery of the fertiliser is expected soon.
“This trading agreement, which is the third of its kind we’ve entered into in the last month since our initial agreement with Comesa, highlights our active growth strategy and commitment to building a commercial fertiliser business.”
Cleverly said under the terms of the latest MoU, which was subject to signing of definitive transaction agreements, his company would source and fund the delivery of fertiliser to local suppliers.
Under their three-year trade agreement signed in August, the parties agreed to create a vertical platform for the mining, production and distribution of fertiliser in the Comesa region.
Through the terms of the agreement, MACFF would supply and deliver at least 500,000 tonnes per year of fertiliser to distributors introduced by Comesa.
This was in line with the background of the growing need for development of a large-scale agricultural industry within Africa to feed the continent’s population.
derick.khumalo