Mechanisation of Zambian farms and agro-processing businesses, to improve livelihoods and food security
The Team Changing Lives
About Us
- Licensed and regulated by Bank of Zambia, AgLeaseCo commenced operations in December 2017 as a Non-Bank Financial Institution (‘NBFI’)
- Owned by KfW Development Bank (Germany) and Africa Agricultural Trade and Investment Fund (‘AATIF’) and funded indirectly by the German People, via the Federal Ministry for Economic Development and Cooperation (‘BMZ’)
- Field Teams present in seven of Zambia`s ten Provinces.
- Over 1,300 small scale and emergent farmers and nearly 38,000 hectares mechanised since inception
- Yields on mechanised cultivations up by between 40% and 160%
Why do we Exist?
Market Cap
Zambia has 900,000 small scale and emergent farmers registered with Zambia National Farmers Union – 80% of these are unbanked and have little or no access to capital
Costs
- Interest rate currently 28% pa fixed
- No exchange risk to Lessee
TARGET MARKET
Small scale and Emergent farmers who cultivate land of between 0.5 and 100 hectares
THE MODEL WORKS
- Over the last four seasons we have seen productivity improve and yields on major crops increase two-fold in some areas
- Impairments satisfactory and steady at 1.2% of total collectable
OUR DIFFERENTIATORS
- Traditional land is acceptable (Untitled)
- A Bank Account is not a necessity
- No collateral outside the asset being financed
- No Business Plans or formal Cashflow forecasts or budgeting required
Solution
CLOSE THE GAP
- Traditional Finance Lease made available to Target Market which is largely un-banked.
- Availability of capital for citizens working ‘Traditional Land’
EQUITABLE PRICING
- AgLeaseCo currently charges fixed rate of 28% per annum on LCY Leases
- Micro-Finance Institutions charge rates between 120% and 180% per annum
FLEXIBLE TENOR
Between 24 and 60 months dependent on equipment financed and cashflow generation
MECHANISE ENTIRE VALUE CHAIN
- Irrigation
- Land Preparation – ripping / ploughing
- Sowing /Planting
- Weeding, Spraying and Crop Care
- Harvesting and threshing
- Storage
Our Values and Drivers
- EFFICIENCY – We take pride in efficient Service Delivery
- TRANSPARENCY – We value transparency and inclusiveness in our Business Model
- DIVERSITY – Diversity is a cornerstone of what we do
- INTEGRITY – Integrity in all we do is not negotiable
- COMMITMENT – We are committed to delivering on our Values
Current Suppliers
Market Dymamics
Opportunity to scale existing model is dependent on access to economically sustainable Funding Lines
Meld between commercial sustainability and deploying ‘Impact Funding’ ensures solid Brand equity
Minimal (if any) competition and an existing and insatiable market – our ability to reach more farmers depends on the scalability of our model to deploy more Field Officers into existing and addiitonal Districts
Our Competition
Summary
AgLeaseCo is grateful to the People of the Federal Republic of Germany for indirectly providing the Seed Capital for what is a much needed and empowering Business Model. We touch the lives of thousands of Zambian small scale and emergent farmers through a regulated business that has both commercial sustainability and rural impact at its very heart. The model works, we have four seasons of experience to prove this. AgLeaseCo is ready for expansion, secure in the base from which we will launch into other deserving agricultural regions of Zambia. A pivotal part of the Value Chain, AgLeaseCo is proud to be changing lives as it mechanises Zambian farms.
