PDAZM: Mali requests more than US$15 million from the World Bank to purchase 21,500 tons of fertilizer through direct agreement

In a letter to the World Bank Group’s Director of Operations, Mali, the Minister of Economy and Finance of Mali, as part of the implementation of the Project for Productivity Development and Agricultural Diversification in the Dry Zones of Mali (PDAZAM), stated that upon request of the Government of the Republic of Mali, the Bank, on the one hand, authorized the creation of an expenditure category for the purchase of fertilizers and, on the other hand, agreed to enter into the relevant contracts through direct agreements.

As a reminder, the Government of the Republic of Mali and the World Bank (WB) signed grant and credit agreements for US$ 30 million each to finance the project on July 16, 2018. These resources were complemented by additional financing of US$ 30 million, with the relevant credit agreement signed on December 12, 2022.

“The goal of PDAZAM is to increase agricultural productivity and strengthen the resilience of small producers and rural households to climate shocks in targeted dryland areas,” the minister continued in the request.

As part of its response to food insecurity in Mali, the Government of the Republic of Mali has decided to purchase 21,500 tons of fertilizers through PDAZAM through a direct agreement for shipment to Bamako, valued at US$15,270,810.34. This purchase will help facilitate access to fertilizers for the targeted beneficiaries.

In fact, the increase in fertilizer prices in 2022, linked to the Russian crisis, has reduced farmers’ purchasing power. The shortage of agricultural inputs, especially fertilizers, has had a negative impact on the output of agricultural activities in Mali in 2022 and 2023, leading to a worsening of the country’s food security situation.

The implementation of this operation has been made possible through a direct agreement with the Office Chrifienne de Phosphate (OCP). The company was chosen for its proven experience in the sector, the almost permanent availability of its products and the price advantage it offers compared to other companies in the sector. It should be recalled that the Malian Government has obtained this program through the same procedure as part of the FSRP-Mali program, financed by the World Bank and managed by the same coordination unit as PDAZAM. 15,000 tons of fertilizers are being delivered.

The purpose of the request is to ask the World Bank to do so, on the one hand, authorize the acquisition of fertilizers by setting up an expenditure category on PDAZAM and, on the other hand, agree to enter the relevant market through direct agreements.

Bushima Diallo September 22