EFAfrica Group secures US$7.2M from AgDevCo to expand agricultural leasing

AFRICA – EFAfrica Group Limited (Efag), a Mauritius-based agricultural equipment leasing company, has secured a follow-on investment of US$7.2 million from AgDevCo to grow its leasing services across East and Southern Africa.

The financing, announced on Wednesday, September 3, 2025, will help agribusiness SMEs in Kenya, Tanzania, and Zambia access vital machinery to scale up production and improve supply chains.

Efag provides lease financing to businesses that often cannot access traditional bank loans due to strict collateral requirements. Its leasing products cover tractors, trucks, and farm implements used in both production and distribution.

By focusing on small and medium-sized enterprises, the company is working to bridge a long-standing mechanization gap in the region.

AgDevCo, a British investor specializing in African agriculture, has been a long-term partner of Efag. “We are delighted to support EFAG’s continued growth as it expands its footprint and product offering, reaching thousands of entrepreneurs, supporting sustainable economic growth in rural areas, and contributing to regional food security,” said John Jakobsson, Chief Investment Officer of AgDevCo.

Efag has been present in Tanzania for over ten years and in Kenya for the past four. In 2024, it entered the Zambian market, adding another layer to its regional coverage. Between 2013 and the end of 2024, the company financed more than 4,000 leases valued at over US$100 million.

These included over 1,300 tractors, 700 farm implements, and 800 trucks, demonstrating the scale of demand for agricultural machinery in sub-Saharan Africa.

Mechanization and food security

The investment comes at a time when demand for farm equipment is increasing across Africa. Urban migration and rising wages have reduced rural labor, pushing more farmers to adopt mechanized solutions.

Tractors, threshers, and planters are enabling farmers to boost yields while cutting costs and time.

At the same time, new markets for mechanization services are emerging. Medium-scale farmers in countries such as Kenya, Nigeria, and Ghana are buying tractors not only for their own fields but also to provide plowing services to smallholders.

This shared-use approach has created access for those unable to purchase equipment outright.

Still, gaps remain. High costs, limited credit options, and weak land tenure systems continue to slow progress. Policymakers are under pressure to improve access to financing and connect tractor owners with farmers who need their services.

The African Union’s Framework for Sustainable Agricultural Mechanization in Africa (SAMA) offers guidance for member states, stressing sustainability and inclusivity in mechanization plans.

Efag’s expansion fits into broader efforts to improve food security on the continent. By supporting timely planting and harvesting, mechanization helps reduce post-harvest losses and strengthens regional food systems.

The US$7.2 million investment from AgDevCo is expected to scale these efforts further.

“Mechanization is not just about machines,” said an Efag spokesperson during the announcement. “It is about enabling farmers to produce more efficiently and ensuring food moves reliably from farms to markets.”

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