KFW-FUNDED AGRICULTURAL MECHANIZATION LEASING PROJECT IN ETHIOPIA SUPPORTS MEDIUM AND SMALLHOLDER FARMERS
In challenging times, GFA supports Ethiopia to advance agricultural mechanization and realize the potential of the farming sector.
In the KfW-funded Agricultural Mechanization Leasing Project, GFA and its Ethiopian partner First Consult Plc support the Development Bank of Ethiopia (DBE) to import high-quality machinery and provide sustainable agricultural machine and equipment leasing. The provision of machinery to agricultural service providers enables increased reach, benefitting medium and smallholder farmers, cooperatives, and organized youth groups.
Qualified suppliers have undergone a rigorous pre-qualification and due diligence process. The supplier due diligence was carried out by a committee composed of representatives of DBE, GFA, and the Ministry of Agriculture to ensure the highest level of transparency and objectivity.
Thanks to the intensive work of all stakeholders, the first orders for high-quality machinery packages were placed in December 2021, ensuring that much-needed equipment would arrive at the customers' premises in time for sowing and harvesting. A focus lies on providing packages of machinery and implements that can be used for various working steps of the farming cycle.
In 2022, GFA will continue to support DBE with capacity building and technical advice to make agricultural mechanization leasing a sustainable business model and maximise the impact for the Ethiopian agricultural sector.
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