ADDIS ABEBA – EthioLease, the first foreign-owned leasing company, received 44 tractors as part of a collaborative agreement the company signed with the government.
The agriculture equipment will equip Agricultural Transformation Agency or ATA farmers’ mechanization centers which provide services to clusters of smallholder farmers who cannot afford or do not wish to buy equipment.
These tractors are part of the first batch of equipment, in addition to the 13 tractors already handed over to lessees and are a continuation of the company’s commitment to the country’s agricultural mechanization transformation endeavor.
Signed in Feb 2020, the collaborative MoU agreement involving ATA and Ministry of Agriculture has the potential to reach over 60 centers in the next three years with EthioLease providing over $150mln worth of agriculture equipment.
Speaking on the latest delivery of equipment, EthioLease Board Chairman Girma Wake said, “the arrival of these additional tractors will contribute to utilizing the country’s immense potential for agriculture mechanization through leased equipment.”
He added, “This kind of support will maximize the efficiency of labor and enhance the farmers’ productivity.”
EthioLease – which began operations in Ethiopia in August after receiving a licence from the National Bank of Ethiopia – is a subsidiary of Africa Asset Finance Company Inc. (AAFC).
It was formed to address the equipment and forex shortages in Ethiopia by providing capital goods financing and a wide range of leasing services for multiple sectors such as agriculture, healthcare, energy, food processing (coffee processing), and manufacturing, among other verticals.
EthioLease buys and imports equipment and oversees its maintenance and proper use throughout the lease period.
To date, EthioLease has signed leasing agreements with more than 60 customers.
Image: The 44 tractors arrive in time for the seeding and planting season