News: Ethio Lease hands Over $7 M worth agricultural mechanization equipment to farmers
Addis Abeba, August 06/ 2020 – Ethio Lease, the first foreign-owned leasing company, today handed over 16 combine harvesters to farmers and unions. The agricultural mechanization equipment are delivered to the farmers in line with the government’s strategy and the collaborative 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.
Girum Tsegaye, Ethio Lease CEO, speaking during the event, said “the continued arrival of these agricultural equipment demonstrates our commitment in supporting the country’s agricultural mechanization endeavor in lieu of solving foreign exchange issues to import such critical equipment.” He further stated “Sustainable agricultural mechanization can play a key role in enabling recovery and building long-term resilience of the farming community. Mechanization can improve efficiency, productivity and income in agriculture endeavor, and enhances food security and livelihoods of farmers.”
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 is a subsidiary of Africa Asset Finance Company Inc. (AAFC). The company 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 such as agriculture, healthcare, energy, food processing (coffee processing), and manufacturing, among other verticals.
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 100 customers. Dispatch
