A representative of Dizengoff, one of Propcom Mai-karfi’s mechanisation vendor partners, is seen here presenting their offering at the Abuja event.
In 2014, the World Bank reported that over 70 percent of Nigeria’s labour force was employed in agriculture but that the number of tractors in circulation in Nigeria was grossly insufficient to satisfy demands for tractors. It estimated that Nigeria needed 81,000 tractors but only had about 45,000 in circulation. According to the FAO, sustainable agricultural mechanisation supports the development of food supply chains through improved agricultural practices for increased production and enhanced food security. Providing farmers access to tractor and other mechanisationservices is not only a viable business opportunity for potential investors but also a societal good, particularly as most farmers in Nigeria rely mostly on human labour and other non-mechanised methods for their farming activities.
Propcom Mai-karfi identified this opportunity and has over the past six years piloted and scaled its tractor leasing and hiring business model as a sustainable means of meeting the mechanisation needs of farmers in Northern Nigeria. The model has proven successful and has achieved its goal of getting tractors into communities where they are needed.
Nevertheless, to meet the demands for mechanisation and improve food production in the long term more investment must be directed to agricultural mechanisation. Consequently, Propcom Mai-karfi organised the recently concluded ‘Agricultural Mechanisation Investment Roadshow’ in Abuja and Lagos on 26 and 28 November respectively to present its work helping farmers access tractors and other mechanised equipment, highlight investment opportunities in agricultural mechanisation and provide an avenue for mechanisation service providers to pitch their business to potential investors and financiers in the hopes of attracting much needed investment.
Over 195 individuals, including farmer cooperatives, farmers, financial and investment institutions, government agencies, private investors, the media, mechanisation vendors, MSPs, and NGOs, attended both events. Springfield Agro/ Mahindra, TATA/John Deere, Tak Agro/ Sonalika and SCOA/New Holland, Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN), Traxi, Hello Tractor, Massey Ferguson, Zenith Bank, Alluvia, ACT, Machine and Equipment Corporation Africa Limited (MECA), National Education Center for Agricultural Safety (NECAs) and many other organisations were represented at the events.
There was on the spot sale of agricultural machinery, partnerships and investment deals were struck, and pledges made to MSPs and vendors by investors and investment houses present. By the end of the events about 1.9 billion Naira in investments ensued. For instance, a loan of up to 1.5 billion Naira was offered to selected MSPs and vendors who needed loans and a pledge of 360 million Naira was made in support of 2,000 farmers for the next maize planting season.
In the coming months, Propcom Mai-karfi will be supporting MSPs in managing deals struck at the events and providing technical assistance to turn potential leads into deals. Propcom Mai-karfi will also continue in its efforts to attract private sector investment to Nigeria’s agricultural mechanisation sector and improve farmers’ access to much needed machinery.
If you’re an individual, business or private financial institution interested in investing in agricultural mechanisation but were unable to attend any of our events, please send us a formal email with your query and details of your business such as type of business, physical location and other relevant information via firstname.lastname@example.org.
Pictures from the Abuja event.
Pictures from the Lagos event.