(4 minutes read)
· Ethio Lease, the first equipment leasing company to be licensed by the National Bank of Ethiopia, has supplied sixteen combine harvesters to farmers and farming unions
· This was a part of the collaborative memorandum of understanding (MoU) signed among Ethio Lease, the Ethiopian Ministryof Agriculture, and Agricultural Transformation Agency (ATA), to give smallholder farmers access to agricultural machinery they would not be able to afford otherwise
Ethio Lease, the first equipment leasing company to be licensed by the National Bank of Ethiopia, has supplied sixteen combine harvesters to farmers and farming unions. This was a part of the collaborative memorandum of understanding (MoU) signed among Ethio Lease, the Ethiopian Ministry of Agriculture, and Agricultural Transformation Agency (ATA), to give smallholder farmers access to agricultural machinery they would not be able to afford otherwise.
Ethio Lease has so far provided farmers in Ethiopia 100 agricultural machinery, worth over US$7 million. The company is also finalizing the import of dozens of combine harvesters worth US$10 million.
Ethio Lease is a subsidiary of Africa Asset Finance Company Inc. (AAFC). It began its operations in August 2019 and provides customers with carefully selected equipment on the basis of a lease contract, whereby the customer is the Lessee. The customer has a conditional right to use the equipment, and Ethio Lease is the Lessor, who buys and owns the equipment. If the equipment needs to be imported, Ethio Lease will buy the equipment abroad, using foreign currency from its parent company, AAFC. Ethio Lease customers can pay the lease fee in Ethiopian Birr. While leasing comes in many forms and shapes, for now the only form of leasing that the NBE will allow is a capital lease (aka “financial lease” or “full pay-out” lease).
