Ethio Lease, the first foreign-owned leasing company in Ethiopia, has received 44 tractors set to be distributed to farmers before the rainy season begins. Ethio Lease has taken up the task as part of an agreement it signed with the Ethiopian Ministry of Agriculture and the Agricultural Transformation Agency (ATA).

The tractors, which are part of the first batch of equipment to be distributed, are aimed to equip ATA farmers’ mechanization centers with much-needed capacity. The centers provide services to clusters of smallholder farmers who cannot afford or wish to buy such equipment.

Ethio Lease, which had already handed over 13 tractors to lessees, considers the effort a continuation of the company's commitment to better Ethiopia's transformation in agricultural mechanization. 

Girma Wake, Board Chairman of Ethio Lease, speaking on the latest delivery of equipment, said the handing over of the additional tractors "will contribute to utilizing the country’s immense potential for agriculture mechanization through leased equipment.”

“This kind of support will maximize the efficiency of labor and enhance the farmers’ productivity,” Mr. Girma said.

A subsidiary of Africa Asset Finance Company Inc. (AAFC), Ethio Lease obtained a license from the National Bank of Ethiopia and began operations in Ethiopia in August 2019. The company started operations with the aim of offering a wide range of leasing services for multiple sectors such as manufacturing, agriculture, healthcare, energy, food processing (including coffee), among others.

To date, Ethio Lease has signed leasing agreements with more than 60 customers.

As per the collaborative MoU Ethio Lease signed in Feb 2020 with the Ethiopian Ministry of Agriculture and Agricultural Transformation Agency (ATA), the leasing service can reach up to 60 farming centers in the upcoming three years, with Ethio Lease providing over $150 million worth of agricultural equipment. 

Source: Ethiopian Monitor