The partnership between Equity Group and CFAO Kenya Ltd. and CFAO Agri Limited aims to offer finances and credit facilities at favorable terms to enable access to farm inputs and machinery. This has given local farmers and other key participants in the agriculture value chain a big boost.
The cooperation will allow farmers and other participants in the agricultural ecosystem to continue receiving accessible financing from Equity, giving them the chance to buy Case IH and Captain tractors using the Bank’s asset finance credit facilities.
This is in favor of boosting food security and giving small-scale farmers the tools they need to continue farming in the future, as per the “Africa Recovery and Resilience Plan,” which was just unveiled at the Commonwealth Heads of Government Meeting (CHOGM) 2022 in Rwanda.
As a result of the collaboration between CFAO Group and Equity, farmers will have access to up to 80% financing with flexible terms and competitive rates, as well as the option to modify their repayment terms based on the farming season. This will encourage greater adoption of mechanization in agriculture.
Equity Group Managing Director and CEO, Dr. James Mwangi, gave a speech at the signing event in which he reaffirmed his commitment to helping farmers through such alliances for the advantage of regional farmers.
“We are making every effort to increase agricultural production. We at Equity aim to protect the values and ambitions of our people, and as agriculture contributes 33% of Kenya’s GDP, 40% of employment, 40% of it in rural regions, and roughly 65% of the country’s foreign exchange, it is significant. He said.
“I applaud CFAO for concentrating on what is important to our people. Given that CFAO is active in 53 African nations, Equity is pleased to cooperate with them and hopes to take this relationship regional. He furthered.
Speaking during the partnership’s introduction, CFAO Chairman Ambassador Dennis Awori noted that Africa has a climate that is ideal for farmers and permits them to grow food all year round, a potential that the private sector can unlock through alliances like the one between CFAO and Equity Group.
“Africa has lagged behind the rest of the world in agricultural productivity primarily due to low mechanization and poor agricultural practices, and we are looking forward to working with Equity Group in other countries to support the empowerment of farmers, who can help the world in its damaged food supply chains due to both the COVID-19 pandemic and the Russia-Ukraine crisis,” he said.
Equity has introduced the “Africa Recovery and Resilience” Plan, a Ksh 700 billion stimulus program that aims to support various economic sectors, with agriculture productivity and ecosystem financing and development at its core – from production to distribution to retail to customers – in order to champion the improved performance of the African economy.
Thomas Bernard, chairman of CFAO Agri, stated that the organization’s goal is to support farmers in increasing their yields and pursuing commercial agriculture as opposed to merely engaging in subsistence farming.
“I salute Equity for this relationship, which will help smallholder farmers a lot. Agriculture is a risky endeavor, therefore it’s necessary that private sector parties work together to provide funding, mechanization, and fertilizers to assist mitigate the risk.
It will be challenging to persuade young people that farming is an exciting and worthwhile endeavor without mechanization, digitization, and new technologies and techniques which can excite them in seeing impact and productivity in the food and agriculture sectors, given that the average age of Kenyans is 19, and given the critical need to scale up agriculture production for Africa and the world at this pivotal moment in history.