DBE Transfers Combine Harvesters to Financial Lease Clients
ADDIS ABABA – The Development Bank of Ethiopia (DBE) has today handed over nine combined harvester machines to its financial lease clients.
The lease offering is a part of the Bank’s ongoing effort to boost farming productivity through mechanization.
DBE currently runs an Agricultural Mechanization Leasing Project (AMLP) with the 15 million Euros support of the government of Germany through the KfW Development Bank.
The President of DBE Yohannes Ayalew and KfW Country Director Diana Hedrich witnessed the transfer of the nine Combine harvest machines transferred to lease financing clients on Wednesday.
Today’s transfer has increased the number of agricultural machineries handed over under AMLP to 9 tractors, and 21 combined harvester machines to leasees mostly SMEs working in farming sector around Addis Ababa, Hawassa, Bure, Shashemene, Adama, Assela, Halaba, Goba, and Batu.
Additional 22 tractors and 16 combined harvesters have also been ordered and will be delivered in the month to come.
“These state-of-the-art machines promise a much higher turnout for Ethiopia’s harvest seasons,” the embassy of German in Addis Ababa said.
It also says Germany’s financial contribution, apart from availing forex access for purchase, funds capacity building for sustainable utilization of the machines.
– Growing demand –
DBE, which plans to provide a 10 billion Birr loan for Small and Medium Enterprises (SMEs) this year, has been providing short and long-term training to SMEs since 2021 with a view to enhancing their knowledge and skill in businesses and services.
Out of the more than 33,000 SMEs that received the training, at least 530 have applied for agricultural lease machineries estimated to cost 82.2 million euros.
DBE is seeking to strengthen its partnership with KfW Development Bank and others to ease its foreign exchange challenges to meet the growing demand.
The German government has already made an additional 15 million Euros commitment to help DBE meet the demand.
The finance will support the second phase of the AMLP which is expected to materialize in the second half of 2023.