Zanaco, AGCO in Massey Fer­gu­son as­set fi­nance deal

Zambian Business Times - - FRONT PAGE -

Zam­bia’s lead­ing Com­mer­cial Bank, Zanaco (LuSE-ZANACO) signed an as­set fi­nance deal with AGCO (NYSE: AGCO), a global man­u­fac­turer and dis­trib­u­tor of agri­cul­tural equip­ment, to part­ner with Zam­bian farm­ers in the pur­chase of farm equip­ment. In a me­dia state­ment emailed to the Zam­bian Busi­ness Times - ZBT, AGCO stated that the deal was un­veiled dur­ing the Agritech Expo in Chisamba in April 2018. The new part­ner­ship be­tween AGCO, its na­tional dis­trib­u­tor BHBW Zam­bia Lim­ited and the Zam­bia Na­tional Com­mer­cial Bank Plc en­tailed the pro­vi­sion of re­tail fi­nan­cial so­lu­tions for farm­ers pur­chas­ing ma­chin­ery from AGCO’s Massey Fer­gu­son brand. “Ac­cess to credit is a cru­cial re­quire­ment for farm­ers seek­ing to ac­quire the right equip­ment to ex­pand and ad­vance their busi­nesses,” says Nu­radin Os­man, AGCO Vice Pres­i­dent and Gen­eral Man­ager Africa. “This part­ner­ship has been set up to ad­dress the spe­cific needs of the agri­cul­tural in­dus­try which is of­ten per­ceived as too high a risk for fi­nan­cial ser­vice providers due to its sea­sonal na­ture, ir­reg­u­lar in­come streams and ex­po­sure to ex­ter­nal fac­tors such as the weather, pests and com­mod­ity price fluc­tu­a­tions.” “AGCO un­der­stands the pres­sure that Zam­bian farm­ers are fac­ing – from small-scale farm­ers through to com­mer­cial en­ter­prises and large agri-projects. To­gether with our part­ners BHBW Zam­bia and Zanaco, we have de­vel­oped a fi­nance so­lu­tion aimed at the full spec­trum of farm­ing op­er­a­tions which of­fers af­ford­able and low-rate fi­nanc­ing in the form of fi­nan­cial leases and agro loans. “We are de­lighted to be work­ing with BHBW Zam­bia and Zanaco on this re­tail fi­nance ini­tia­tive,” added Mr. Os­man. “They have enor­mous ex­pe­ri­ence in the farm ma­chin­ery and agri­cul­ture sec­tors and we look for­ward to a suc­cess­ful part­ner­ship serv­ing Zam­bian farm­ers.” Com­ment­ing, Hen­nie Heyneke, Man­ag­ing Di­rec­tor, BHBW Zam­bia said: “Ac­cess to re­tail fi­nance is an im­por­tant ben­e­fit for our cus­tomers’ busi­ness growth, en­abling them to re­al­ize their farm ma­chin­ery pur­chases, in­vest in the lat­est equip­ment and man­age cash flow in line with sea­sonal de­mands.” Mech­a­niza­tion of agri­cul­ture in Zam­bia is ex­pected to lead to in­creased pro­duc­tiv­ity and lower the cost of pro­duc­tion. Zanaco’s par­ent com­pany and eq­uity holder Rabo Bank has ex­ten­sive agro fi­nance ex­per­tise which if fully rolled out into Zam­bia, can pro­vide al­ter­na­tive pri­vate sec­tor led sup­port to the di­ver­si­fi­ca­tion ef­forts in agri­cul­ture.

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.