Ethio Lease, the first foreign-owned leasing company, received the first shipment of 44 tractors, which will be distributed to Ethiopian farmers.
The tractors came as part of a collaborative agreement the company signed in February 2020 with the Ministry of Agriculture(MOA) and the Agricultural Transformation Agency (ATA), Ethio Lease said, in a press statement. The agriculture equipment will equip ATA farmers’ mechanisation centres 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.
The collaborative agreement has the potential to reach over 60 centres in the next three years with Ethio Lease providing over 150 million dollars’ worth of agriculture equipment.Speaking on the latest delivery of equipment, Ethio Lease 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.”
Ethio Lease is a subsidiary of Africa Asset Finance Company Inc. (AAFC). The company began operations in August after receiving a licence 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 such as agriculture, healthcare, energy, food processing (coffee processing), and manufacturing, among other verticals.
Commenting on the significance of leasing services for Ethiopia’s agriculture sector in particular, Ethio Lease CEO Girum Tsegaye noted that “financial services are a critical enabler for sustainable economic growth which will increase productivity among farmers to ensure poverty reduction and food security as well as significant financial gains.”
Ethio Lease buys and imports equipment and oversees its maintenance and proper use throughout the lease period. Typically, the lessee will have an option to buy the equipment from the company at the end of the lease period.
Since its launch, Ethio Lease has provided leasing services to address equipment shortages in the agriculture, healthcare, energy, and food processing sectors, including some in manufacturing. To date, Ethio Lease has signed leasing agreements with more than 60 customers.
Ethio Lease is Ethiopia’s first privately and foreign owned equipment leasing company with a license from the National Bank of Ethiopia. Ethio Lease is a subsidiary company of Africa Asset Finance Company Inc. (AAFC), which was launched in 2017 to address Africa’s underserved market for equipment leasing and asset-backed lending, with Ethiopia as its first market.
Africa Asset Finance Company Inc (AAFC) is a rapidly growing specialty finance company. AAFC specializes in providing flexible equipment leasing and asset-based lending solutions to businesses across Africa. Headquartered in New York, the company maintains an international presence with offices in several countries