Element 1
Commercial Sustainability
Boosting Farm Power through Appropriate Technologies and Business Models
Aim: To bridge the farm power deficit in Africa by shifting reliance from human muscle and hand tools to appropriate mechanical power sources, ensuring access for even the smallest farmers.
This element addresses the physical limitation of African agriculture: the lack of energy. It advocates for a hierarchy of technology suited to specific local contexts, ranging from improved animal traction and two-wheel tractors for small plots to four-wheel tractors for larger operations.
Crucially, it expands the Access vs Ownership model. Recognizing that most smallholders cannot afford to buy a tractor, this element promotes Sustainable Mechanization Service Providers (SMSPs), entrepreneurial hiring services that allow farmers to pay for mechanization only when needed.
Element 2
Commercial Sustainability
Promoting Innovative Financing Mechanisms
Aim: To unlock capital for machinery acquisition by de-risking the sector for financial institutions and creating affordable credit pathways for farmers and service providers.
Traditional banking often views agriculture as high risk, resulting in prohibitive interest rates. This element outlines practical financial innovations.
- Leasing: A model where the bank owns the machinery and the operator pays to use it, eventually owning it, reducing large collateral requirements.
- Risk-Sharing Funds: Government or donor-backed guarantees that cover part of losses, encouraging banks to lend.
- Smart Subsidies: Moving away from free tractor distribution toward subsidized interest rates or matching grants for entrepreneurs.
Element 3
Commercial Sustainability
Sustainable Systems for Manufacturing and Distribution
Aim: To build a robust, localized supply chain that ensures machinery is not only available for purchase but can be maintained and repaired indefinitely.
A major historical failure in African mechanization is the graveyard of tractors, machines abandoned due to lack of spare parts. This element focuses on durable systems.
- Local Manufacturing: Encouraging domestic fabrication of simpler implements (ploughs, trailers, threshers) and spare parts to reduce import dependence.
- Distribution Networks: Ensuring manufacturers establish certified dealerships and service centers close to rural areas for reliable after-sales support.
Element 4
Commercial Sustainability
Sustainable Mechanization Across Agrifood Value Chains
Aim: To expand the definition of mechanization beyond tillage and cultivation to cover the entire food cycle, reducing post-harvest losses and adding value.
Many farmers lose up to 30% of their harvest due to poor handling. This element promotes technologies for harvesting, threshing, cleaning, drying, grading, storage, and transport.
By mechanizing downstream activities, farmers can sell higher quality products and store crops to sell when prices are better instead of being forced to sell immediately at harvest.
Element 5
Commercial Sustainability
Innovative Systems for Technology Development and Transfer
Aim: To ensure that introduced technologies are technically proven, agronomically suitable for African soils, and economically viable before mass dissemination.
Importing machinery without adaptation often leads to failure, for example machinery too heavy for fragile soils. This element calls for strengthening National Agricultural Research Systems (NAMS).
- Participatory R&D: Involving farmers directly in technology testing.
- Standardization: Rigorous testing of machinery to ensure safety and performance.
- Commercial Linkages: Research institutes working with manufacturers to bring prototypes to market.