Increasing agricultural productivity through innovation – agrifinance over leasing
GFA promotes agricultural mechanization through Hire-Purchase Leasing as innovative agricultural financing product. The project expedites the import of long-lasting and adequate agricultural machines and implements to support the Development Bank of Ethiopia (DBE) by building internal capacities required to offer leasing finance for agricultural machines to agribusinesses in a sustainable manner. This is to contribute to improving the sustainable access to leasing as new financial product for agricultural SMEs for the financing of agricultural machines and equipment. BMZ makes available funding to DBE via KfW, while then potential lessees make an application to DBE. Eligible lessees will be farmers and agricultural services providers, cooperatives or youth groups. GFA supports DBE in strengthening its agricultural leasing financial offer and service delivery and strengthens capacities on demand and supply site for improved access to high-quality machinery in Ethiopia.