Local firm clinches Indian tractor deal

Preet agricultural implements will soon be distributed in Zimbabwe

Zimbabwean firm Agro Innovations has formed a tie-up with Indian tractor manufacturer Preet to assemble and distribute the latter’s products in sub-Saharan Africa.

An estimated 250 tractors will be distributed in the region before the end of the year. Agro Innovations’ contract covers Zimbabwe, Botswana, the DRC, Lesotho, Malawi, Swaziland, South Africa and Nigeria.

Through the deal, Preet will supply components of tractors and combine harvesters to Agro Innovations, which will assemble the kits and distribute the equipment in all those countries except Nigeria.

For the Nigerian market, Agro Innovations will export the components to Nigeria where they will be assembled in the West African country.

The first consignment of components is expected in September 2015.

Dealers for countries such as South Africa and Swaziland are currently being identified. Agro Innovations director Mr Tongai Saurombe said there were plans to ensure locals supplied at least 60 percent of components.

“In the near future, we expect at least 60 percent of the components to come from local manufactures to cut costs and contribute to job creation in line with the Zim-Asset . . .

“Zimbabwe is tipped to be an industrial hub for the region given the availability of natural resources and we want to tap into that with farming implements,” said Mr Saurombe.

He added that the company was leveraging on its relationship with Preet to negotiate lines of credit for local farmers from Indian banks.

The funds will be earmarked for emerging farmers who are struggling to get both inputs and funding.

According to Mr Saurombe, the inherent potential in agriculture would help Zimbabwe achieve food security and restore its status as Southern Africa’s bread basket.

“We know agriculture is crucial to our economy, that is why we want to assist farmers access cheap financing to grow the sector and the economy.

“Our organisation was born out of the realisation that there is need to increase food security in sub-Saharan Africa and other parts of the continent,” he said.