US- based agrarian equipment manufacturer AGCO and Kenya’s Equity Bank have signed a deal that will see the latter provide up to 80% financing to customers interested in acquiring Massey agricultural equipment under the brand.
The loan deal, which will be made through Massey Ferguson’s local distributor FMD, will be payable within two years. FMD operates under the Panafrican Equipment Group (PEG), which happens to be the principal distributor of Komatsu, Wirtgen Group and AGCO machinery brands in Kenya Rwanda, Burundi, Tanzania, Uganda, Nigeria, Sierra Leone and Dubai.
According to the bank, the asset financing deal will enable small scale farmers access quality and affordable equipment which will contribute to their farming activities and the nation’s overall food security.
Equity Bank Kenya Associate Director- Credit Sam Ndung’u released a statement saying that their goal, together with AGCO is to empower SMEs and especially those in the agribusiness value chain. He further added that this partnership will go a long way to enable more convenient access to finance thereby creating growth and job opportunities for more people.
Similarly, FMD General Manager Fergus Robley reiterated that the partnership will enable farmers get value for their produce.
Last week, PEG unveiled a US $4.8m complex on Mombasa Road that will serve as its East African headquarters. Speaking on the move, PEG Founder and Chairman Charles Field-Marsham expressed optimism that the new investment would pay off and meet the needs of farmers eyeing equipment in the East African region.