ADDIS ABABA – Ethio Lease, the first foreign-owned leasing company, said on Thursday it has handed over 16 combine harvesters to farmers and unions.
The agricultural mechanization equipments are delivered to the farmers on Tuesday in line with a Memorandum of Understanding, Ethio Lease signed with the Ministry of Agriculture and the Agricultural Transformation Agency.
The agreement came to effect to enable smallholder farmers who will not afford to buy agro-mechanization equipment by themselves.
The latest delivery of combine harvesters to the farmers brings the total number of agricultural equipment being delivered to farmers to 100 with a total worth of more than $7 million fulfilling the commitment the company made to the farmers and the agricultural sector.
The Company is also finalizing the import of dozens of combine harvesters worth $10 million which are expected to arrive in September and October.
These combines are intended for the main harvest season.
Ethio Lease CEO, Girum Tsegaye, said the arrival of the equipment demonstrates “our commitment in supporting the country’s agricultural mechanization endeavor in lieu of solving foreign exchange issues to import such critical equipment.”
In addition to supporting farmers, Ethio Lease’s venture is generating employment opportunities to operators, assistant operators, operation managers, agronomists, and the youth.
Ethio Lease – a subsidiary of Africa Asset Finance Company Inc. (AAFC) – began operations in August 2019 after receiving a license from the National Bank of Ethiopia.
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 including agriculture and manufacturing.