Ethio Lease hands over $7m worth agricultural mechanization equipment to farmers

Addis Ababa, August 7, 2020 (FBC) -Ethio Lease, the first foreign-owned leasing company, on Wednesday 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, according to a statement Ethio Lease sent to FBC.

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.

Ethio Lease is a subsidiary of Africa Asset Finance Company Inc. (AAFC). The company began operations in August 2019 after receiving a licence from the National Bank of Ethiopia.

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.