Equity Group, CFAO Kenya Ltd, and CFAO Agri Limited (CFAO Group) have entered into a deal that will among others see farmers provided with up to 80 percent financing that will enable them to purchase farm inputs and machinery such as tractors.
Ultimately, the three entities seek to provide local farmers and other primary players in the agriculture value chain with easy access to farm inputs and machinery in support of enhancing food security and empowering small-scale farmers to farm the future.
Under the financing plan, farmers will be able to adjust their repayment terms based on the farming season, therefore, promoting the increased adoption of mechanization in agriculture.
Speaking at the signing ceremony, Equity Group Managing Director and CEO, James Mwangi said the firm is focused on increasing agriculture production and will leverage the footprint of CFAO which is present in 53 African countries.
“We want to secure the values and aspirations of our people and with agriculture being 33 percent of Kenya’s GDP, capturing 40 percent of employment with 40 percent of that in rural areas and with almost 65 percent of agriculture accounting for foreign exchange, for us at Equity this is important,” Mwangi said.
CFAO Chairman Ambassador Dennis Awori said the company is keen on supporting the empowerment of farmers, who in turn can support the world in its broken food supply chains due to both the COVID-19 pandemic and the Russia-Ukraine crisis.
“Africa is endowed with a favorable climate that allows farmers to grow food throughout the year, a potential that the private sector can tap through partnerships such as the one between CFAO and Equity Group. Africa has lagged behind the rest of the world in agricultural productivity mainly due to low mechanization and poor agricultural practices, “ he remarked.
CFAO Agri Chairman Thomas Bernard said CFAO aims to help farmers improve their yields and embrace commercial agriculture as opposed to practicing only subsistence farming.
“I thank Equity for this relationship which will go a long way in supporting smallholder farmers. Agriculture is a risky business, and it is important that private sector stakeholders combine efforts to help hedge against the risk by providing mechanization, fertilizers, and financing,” he noted. CFAO Agri is the agribusiness division of CFAO Kenya.
Source: Capital FM Kenya.