▲The German-funded combine harvester was handed over to a lease financing customer
According to Ethiopian media on November 26, 2022, KfW (the government development bank of the Federal Republic of Germany; Five high-quality combine harvesters funded by KFW were officially handed over to a finance leasing customer as part of an agricultural mechanization leasing project in Ethiopia.
It is understood that the fourth round of agricultural mechanization leasing project funded by KFW in Ethiopia has so far handed over 50 agricultural mechanization machines worth 13 million euros to financial leasing customers. The machinery, financed by the KfW Development Bank Fund, has been purchased by the Ethiopian Development Bank (DBE).
KFW Ethiopia Director Diana Hedrich said at the meeting that the KFW Development Bank has been financing investment, equipment (agricultural mechanized machines) and infrastructure. Diana Hedrich said the 5 high-quality combine harvesters currently seen here are funded by KFW.
According to Diana Hedrich, KFW and the Ethiopian Development Bank began working together in 2018, when the German government provided 13 million euros for the project. The project is strengthening Ethiopia's agricultural mechanization and the strategy of the Ministry of Agriculture, including the independence of wheat production from wheat imports.
Asfaw Abera, Vice President of the Development Bank of Ethiopia (DBE), stressed the need to increase such partnerships to increase the level of agricultural mechanization in Ethiopia. Ethiopia, together with key partners such as KFW, wants to strengthen its efforts to import agricultural machinery. In this regard, the German Ministry for Economic Cooperation and Development has been supporting the initiative of this large-scale mechanization project through KFW.
KFW is supporting the government's initiatives to strengthen agricultural mechanization and modernize agricultural practices in Ethiopia.
ASFAW Abera, Vice President of DBE said, the project is increasing productivity, improving farmers' livelihoods, creating jobs, enhancing building capacity and contributing to ensuring food security in Ethiopia. To date, some 32 combine harvesters, 9 tractors and 9 implements, totalling 50 agricultural mechanized machinery, have been handed over to service providers and farmers. It is reported that 61 agricultural mechanization machines are also in the procurement process.
Tamiru Habte, advisor to the Ethiopian government's Ministry of Agriculture, thanked KFW, the Ethiopian Development Bank and the government for their role in implementing the project to improve agricultural mechanization. The Ethiopian government exempted agricultural mechanized machines from import taxes in order to increase the level of mechanization.
The Agricultural Mechanization Financial Leasing Project is funded by the German Ministry for Economic Cooperation and Development through KFW and implemented by the Ethiopian Development Bank in cooperation with the Ministry of Agriculture to accelerate agricultural mechanization and realize the potential of the agricultural sector. The project was launched in 2018 and is KFW's first sub-project in Ethiopia.