The Italy-based equipment manufacturer New Holland recently collaborated with leasing company Equity for Tanzania (EFTA) to deliver 200 tractors to Tanzania in an effort to enhance mechanization among small-scale farmers, improve agricultural productivity and strengthen food security. The effort includes several months of training for farmers across multiple districts in the country. Tanzania’s CRDB Bank and New Holland’s distributor in Tanzania, Hughes Agriculture, facilitated the deal.
EFTA, which financed its first lease in 2004, specializes in serving small and medium-sized enterprises. The company offers leases on equipment valued up to USD 600,000 with only the equipment itself serving as collateral. EFTA is headquartered in the Tanzanian district of Moshi.
New Holland was founded in 1895 in the US city of New Holland, Pennsylvania, and it has since moved its headquarters to Italy. The company manufactures agricultural machinery such as tractors, seeding equipment, harvesters and balers.
CRDB was established in 1996 as Cooperative Rural Development Bank. As of December 2022, it held total assets of TZS 11.6 trillion (USD 4.9 billion) and deposits of TZS 8 trillion (USD 3.3 billion). The bank employs 3,000 people who operate 200 branches in both Tanzania and via its affiliate in Burundi.
Hughes is a subsidiary of CMC Motors, which sells vehicles and machinery in Kenya and Uganda as well as Tanzania. CMC Motors, in turn, is a unit of the UAE-based conglomerate Al-Futtaim.
By Vaughn Rajah, Research Associate
Sources and Additional Resources
MarketWatch article
https://www.marketwatch.com/press-release/new-hollands-new-partnership-to-provide-tractors-for-farmers-in-tanzania-2023-04-06
EFTA homepage
https://efta.co.tz/
New Holland homepage
https://www.newholland.com/
CRDB homepage
https://crdbbank.co.tz/
CRDB financials
https://crdbbank.co.tz/en/investor-relations/shareholders/3/structures/6
Hughes webpage
https://www.cmcmotors.com/en-tz/
Al-Futtaim homepage
https://www.alfuttaim.com/
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