This document summarizes agricultural mechanization service delivery in Ethiopia. It discusses the various service providers, including private operators, farmers' cooperatives, youth groups and individuals. The main services provided are harvesting, threshing, shelling, land preparation and planting. There are challenges around limited geographic scope, dominance of combine harvesting, and lack of financing, spare parts and trained technicians. The government is working to address these challenges through tax exemptions, training programs and partnerships with international organizations to improve sustainable agricultural mechanization.

1. Regional workshop to share experiences of sustainable
agricultural mechanization hire service provision practices in
Sub-Saharan African countries. What opportunities for
investments?
AGRICULTURAL
MECHANIZATION SERVICE
DELIVERY IN ETHIOPIA
Tamiru Habte
Director /Agricultural Mechanization Directorate
MSc Agricultural Mecanization Engineering
December 9-12, 2019, Grand Imperial Hotel
Kampala, Uganda

2. AM SERVICE DELIVERY
AM Service is provided by,
 Private service providers
 Farmers Cooperative Unions
 Youth AM service delivery enterprises
 Individual owners
 Public institution

3. TYPE OF SERVICES
 Harvesting
 Threshing and Shelling
 Land preparation
 Planting

4. MACHINERY FLEETS BY SP GROUP
Number and type of machines owned
Service providers
(Group)
Combine
Harvester
4WT 2WT Trailer planter
s
Sheller
and
Threshers
1.Private service
providers
1 Org.
300 Mem
1150 units
380
2.Farmers
Cooperative
Unions
29D:final
mecanization
doc 5
miniute.avi
179
3.Youth Group 5 10
4.individuals 6000 500
5.Public Institution 8 25

6. CHALLENGES IN THE SERVICE
DELIVERY
 Limited scope/Geographic/ of service delivery
 Limited range of services/dominated by
combine harvesting
D:Youth Machinery videoIMG_4038.MOV
 IMG_4038.MOV

7. GOVERNMENT MEASURES TO ADDRESS
CHALLENGES IN THE SERVICE DELIVERY
 Exemption of Agricultural Mechanization Technologies i.e imported
,locally assembled and manufactured from all kinds of Taxes
 Services like Land preparation,planting,spraying,
Harvesting,winnowing and cleaning,Baling,water lifting,feed
processing and transportation of agri produce from farm to storage
are all exempted from V.A.T
 Established and certified a skill traimg center for operators
 Approved and launched a guideline and a standard for the
establishment of a skill training center by the private sector
 Secured a support from the German Gov. To open additional
ATVET mechanization school in two colleges

8. SPECIFIC CHALLENGES TO SAM IN
GENERAL AND TO THE PROVISION OF
SERVICES IN PARTICULAR
 Access to finance
 Shortage of foreign currency
 Lack of experienced operators and Maintenance Technicians
 Lack of spare parts and maintenance facilities closer to the users
 Diversification of service delivery/Dominated by combine
harvesting
 Lack of code of conduct for service providers specially for
operators
 Price negotations through middlemen/un registered brookers

9. SUSTAINABLE AGRICULTURAL MECHANIZATION
SPECIFIC OPPORTUNITIES
 The growing demand by the SHF for technology
 Aging Agricultural population, rural urban migration
 The tax holidays for importers, local assemblers, and local small
Scale manufacturers who are manufacturing multi crop threshers
and maize shellers
 New partners are showing interest to augment our efforts(interest to
establish assembly plants/S.Korea,India,Brazil,China, Turkey, Italy/
 New SME are emerging in the manufacturing of shellers, MCT and
Metal Silos at regional centres

10. PARTNERSHIPS & ALLIANCES
The government of Ethiopia is partnering with;
 AGP
 world Bank
 GIZ
 CIMMYT
 Kfw
 South korea
 China/CAAMS/

11. CONCLUSION & FUTURE PROSPECTS
Wider adoption of the the existing business model for Machinery lease
finance and sourcing through both Gov. And Private Banks

 Soliciting funding from different sources
 Establishment of Agri. Machinery Fund

12. tamiruhabte2@gmail.com
Thank You