The European Alliance on Agricultural knowledge for Development

Agricultural Leasing in sub-Saharan Africa

31 May 2017. This webinar discussed Agricultural Leasing in sub-Saharan Africa, based on a recent market study undertaken by Nathan Associates in Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda and Zambia.

Although leasing is a growing form of asset finance in African markets, its use in agriculture remains a nascent concept. Why is this the case? How could leasing help to bridge the finance gap in the sector and ultimately improve rural livelihoods? More specifically, what role can Development Finance Institutions (DFIs) play in expanding agricultural leasing in order to support much-needed growth in the African agriculture sector ?

Speakers included: Amalia Johnsson and Stewart Pirnie from Nathan Associates. The session was moderated by Mike De Klerk, Agricultural Development Specialist.

Registration ID: This event did not require an enrollment ID
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Related: 

Agricultural Leasing Market Scoping Study for Sub-Saharan Africa
REPORT | MARCH 2017 | 29 pages | FSD Africa, Nathan Associates

This scoping study (Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda and Zambia) applies a market systems approach to agricultural equipment leasing in sub-Saharan Africa in order to capture a holistic view of how the leasing market currently works.

  • Like many other financial sector challenges, there is no “one size fits all” solution to building a functioning agricultural leasing sector that is appropriate for and accessible to market players across the continent. 
  • However, through a market systems lens, the research helps to identify constraints within the core market (supply and demand), the market functions that support the sector and the policy and regulatory systems that govern the sector. 
  • Using this approach, the report maps the countries of scope and starts to pinpoint recommendations for developing the sector. The hope is that this market scoping can act as a starting block for development partners that may be interested in promoting growth within the agricultural leasing sector. 
  • The report provides useful country overviews and a summary as to how the countries of scope were chosen, in an effort to identify the right geographical focus for any development partner. The overarching recommendations can be used to best determine one’s entry point or focus, based on specific interests.
Related PAEPARD blogpost

Leasing agricultural equipment in Senegal

6 January 2015. The African Export-Import Bank (Afreximbank) has arranged and partly financed a
€25mn credit facility to Locafrique, a leasing company to the Senegalese agricultural sector. Afreximbank arranged the dual-tranche loan, with Banque Atlantique Senegal as an additional lender.


Source: PAEPARD FEED

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