New Holland Agriculture, a brand under CNH Industrial, has forged a promising collaboration with Equity for Tanzania (EFTA) with the prime objective of enhancing the mechanization of smallholder farming in Tanzania. This alliance marks the procurement of 200 top-of-the-line New Holland TT75 4WD tractors.
Supervised by the Bank of Tanzania, this joint venture seeks to offer equipment leasing opportunities without collateral to those farmers who typically find it challenging to secure traditional bank financing.
As Tanzania embarks on a mission to escalate its mechanization, amplify agricultural output, and augment food security by the year 2025, this fleet of 200 tractors is anticipated to play a pivotal role in realising these objectives.
This landmark deal was made possible with the concerted efforts of Hughes Agriculture Tanzania Ltd (HAT), the local distributor for New Holland Agriculture in Tanzania, and CRDB, one of Tanzania’s premier banking institutions. HAT and EFTA’s partnership stretches over half a decade. However, this marks a historic juncture where New Holland Agriculture and CRDB have come onboard to markedly expand tractor accessibility for the nation’s smallholder farmers.
This is just the beginning, as the vision extends to proliferate mechanization not only in Tanzania but across East Africa, including nations like Kenya.
Comprehensive Training for Optimal Utilisation
To ensure farmers extract the maximum value from these machines, a structured training programme has been rolled out across various Tanzanian districts. Running till April 2023, this initiative is geared towards equipping farmers with technical prowess, thereby optimising productivity and profitability.
Özkan Eren, Business Director for New Holland Middle East and Africa, expressed his sentiments:
“New Holland’s longstanding foothold in Tanzania is a testament to our unwavering commitment to innovation and product excellence. Through this collaboration, we aim to elevate the mechanization prowess of smallholder Tanzanian farmers. Our association with EFTA further amplifies our commitment to farmer training and technical support. Our investments in Tanzania will persistently flourish, echoing our allegiance to our local associates.”
Echoing these sentiments, Stuart Leishman, Managing Director of HAT, stated:
“Mechanized farming is the linchpin for Tanzania’s ambition of achieving food sufficiency. It fills us with immense pride to play an instrumental role in expanding the mechanized farming footprint in Tanzania. With the synergies between New Holland Agriculture, EFTA, and the backing of CRDB, we’ve carved a pathway for farmers to procure world-class New Holland tractors at economical rates.”
Nicomed Bohay, Managing Director of EFTA, further added:
“Securing a deal for 200 tractors from a global leader like New Holland reiterates EFTA’s pledge to democratise finance access for Tanzanian farmers. This initiative resonates with our mission to bridge the gap between microfinance institutions and conventional banks, ensuring that the ‘missing middle’ segment of SMEs gain access to top-notch farming equipment.”