Public-Private Sector Models

for Mechanization in SSA

Workshop on Boosting Agricultural Mechanization of Rice
Cropping System in Sub-Saharan Africa

St. Louis

6-8 June, 2011

Dr. Kunihiro TOKIDA

Senior Advisor, JICA
 Current Situation of Agricultural
Mechanization in SSA
Delayed tractorization: 2/1000ha in 1980s
1.3/1000ha in 2003
Stagnated diffusion of Animal Draft Power
Increased importation of low-cost tractors from
India and China
Very limited knockdown production
Limited local production of small machines and
implements
Movement of Agricultural Mechanization
 Issues on African Agricultural Mechanization
No programs based on clear mechanization policy and strategy
High local production cost due to imported materials
Public led mechanization
No scale merit due to too many brands with small volume
(scattered customers and small market)
Unstable spare parts supply and post sales service
Very limited human resources for mechanization promotion
No international commitment to assist mechanization

Private-Public Sector Model

Balance of importation and domestic production
Support for farmers when purchasing machinery
Custom hiring business model

Risks:
Continuous economic growth?
Maintenance of crop price at higher level
Political stability
Effect of climate change
 QUESTIONNAIRE TO CARD GM III PARTICIPANTS
(May 2010)
Purpose：
 1. Mechanization situation
 2. Problems and issues
 3. Prospects on agricultural mechanization
*Limited analysis due to partial respondents
 National Strategy for Agricultural Mechanization

Country Year Effect. Issues

Kenya 1994 No No political commitment
Ghana 2008 No Implementation plan needed
Tanzania 2006 On going
Cameroon 2010 Not yet
Rwanda - Drafted
Benin 2008 On going
Central Africa 2000 On going
Core d’Ivoire 2006 On going
Uganda 2008 No Draft only
Sierra Leone 2006 No To be implemented
 Incentives for Mechanization
Country Incentives
Kenya Import tariff exemption
Burkina Faso Existing (not specified)
Tanzania 20-50% shared by farmers
Rwanda Import tariff exemption,
50% purchase subsidy
Benin 50% purchase subsidy
Cote d’Ivoire 5 year loan
Sierra Leone 50% purchase subsidy
 Local Production of Farm Machinery and
Implements
Country Impleme Animal D P Thres Rice
nts Equipment hers mills
Kenya ○ ○ ○
Uganda ○
Tanzania ○
Rwanda ○
Madagascar ○
Cameroon ○ ○ ○
Togo ○ ○
Benin ○ ○ ○
Central A. ○
 Tractor Hiring Services
◎Major ○Existing ●Terminated
Country Govern Issues, Reasons of Private
ment termination Sector
Kenya ○ ○
Uganda ● Poor management ◎
Tanzania ● Poor management
Cameroon ● Economic crisis ○
Rwanda ○ Small scale
Benin ○ Poor maintenance ◎
Madagascar ● Low efficiency ○
Zambia ● Privatization ○
Gambia ○ Small number, Frequent
troubles
Sierra Leone ○ ○
 Rice Mills (for selected countries)
Gov. Private Private Major problems
Large Small
Kenya ○ ○ ◎ Low quality

Madagascar ◎ Small trade, Obsolete

Tanzania ○ ◎ Poor quality, Poor
maintenance
Gambia ● ◎ Low quality
Rwanda ● ◎
Benin ○ ◎
Central Africa ◎ Low quality, Spare parts
Cote D’Ivoire ◎ Small trade, Low quality
Uganda ○ ◎ Small trade, Low
efficiency
Sierra Leone ○ ◎ Low efficiency
Can Small Agricultural Mechanization Model
in Asia Work in Africa?

 Can African individual farmers own small

tractors?
YES-13 NO-3

Reasons for NO
 Ghana: Too much initial investment
 Zambia: Not suitable for large farm land
 Gambia: Too small land holdings
What is the mainstream of mechanization in Africa
in 2050?
Country Owning Owning Hiring Hiring ADP
Large Small Large Small
Kenya ○ ○ ○
Ghana ○
Tanzania ○
Cameroon ○
Rwanda ○
Benin ○
Central Africa ○ ○
Cote d’Ivoire ○ ○
Zambia ○ ○ ○
Burkina Faso ○ ○ ○
 Scenario on Rice Mechanization
in SSA
Large rice mechanization in Large scale irrigation
projects considering rice value chain
Small rice mechanization in community irrigation
Higher utilization of machinery in upland farming
systems

Increased number of private custom hiring service

Increased machine ownership by individual farmers
Increase in small machinery ownership by non-
agricultural income increase

Mechanization by imported machines

Mechanization by locally produced machinery
Mr. Gideon Gitungo Kingangi
Hire service, Tour van operator
Machine ownership
Down payment 30%, 2year loan、Interest rate15%
 CASE JX80 ４WD (2009) 3.4mill. shs
 Disc Plow 3x66cm 0.4mill. shs
 Disc Harrow 24x56cm 0.4mill. shs
 MF165 （1980）
Service fee
 Disc Plow 2000Kshs/acre
 Disc Harrow 1000Kshs/acre
10acre/day x 25days/mo x 10 mo/year x 2,000shs
=5,000,000/year
Major cost
 Fuel 600shs/acre x 10acre/day x 250days =
1,500,000
 R&M 500,000Kshs/year
 Operator 5,000,000 x 10% = 500,000
+food+hotel
Pattern of Agricultural Mechanization
 Alternatives for Mechanization in SSA
Strategic Agricultural Mechanization Plan, Feasible SSA mechanization
model

Promotion of agricultural mechanization using imported machines

Purchase promotion (Warranty, Low tariff, Credit, Purchase subsidy,
O&M training service, etc)
Promotion of service providers (Loan availability, Hiring
entrepreneur support, Mechanic training, etc.)
Dealer support (Warranty, Spare parts supply, Preventive
maintenance, Loan availability, etc.)
Elimination of poor quality machines

Promotion of locally produced machines

Human resource development for research and development
Promotion of local manufacturers (Loan availability, Government
purchase, PPP, etc.)
Sales promotion of locally produced machines (Purchase subsidy,
O&M training service, etc.)
Dealer support (Networking, Micro credit, etc.)
Farmer support (Extension officer, Farmer group, Operator
instruction, etc.)
 Enabling Environment for PPP in SSA
Government commitment with clear mechanization
policy and strategy with concerned ministries
Direct public investment that does not disturb private
investment
Available human resources
Reduction of business risks
Business system for sustainable agricultural inputs
Protection of investors
Tariff reduction
Cost reduction
Creation of mechanization demand
Protection of customers
Financial support and purchase subsidies
Mechanism to Promote Hire Service
for Smallholders
 Development Stages
of Agricultural Mechanization
 Japan’s Possible Priority Actions for
Rice Mechanization in SSA
Group training on mechanization for CARD target countries
Experts to support formulation of mechanization strategy
Technical assistance to make a custom hiring business model
Program support using KRII
Technical assistance for appropriate machinery development
Capacity building for research and development, testing
Training of extension officers as mechanization promoters
Promotion of PPP
GRiSP proposal
Theme 3: Increasing the productivity, sustainability, and
resilience of rice-based production systems
Product Line 3.1. Innovative technologies for an ecological
intensification of rice production systems under current
and future climates
3.1.4. Mechanization and agronomic options to increase energy and
labor efficiency
M3.1.4.1 (2011) Mechanization options for rainfed lowland systems
introduced and evaluated in representative farming
communities in Togo and Benin
M3.1.4.2 (2012) New prototype crop establishment and weed control
strategies for dry-seeded seeded systems
M3.1.4.3 (2013) Mechanized minimum and zero-till systems for rice-
wheat/maize/pulses/potato cropping systems
M3.1.4.4 (2014) Mechanization options for rainfed lowland and
upland systems evaluated in farming communities in at least 4
countries in WCA
Key Innovations: small-scale mechanization of rice production
system in Africa
GRiSP proposal
Theme 4: Extracting more value from rice harvests through
improved processing and market systems and new
products
R&D Product Line: 4.1. Technologies and business models to
improve rice postharvest practices, processing, and
marketing
4.1.1. Improved technologies and management options to increase
postharvest yield
M4.1.1.2 (2012) Africa: Adapted, locally manufactured mechanization
options (mini-combine harvesters, dryers, storage systems)
Theme 6: logical framework: Supporting the growth of the
global rice sector
R&D Product Line: 6.3. Effective systems for large-scale adoption
of rice technologies in Africa
6.3.3. New platforms for delivering agronomic, postharvest and
processing innovations
M6.3.3.4 (2015) Public-private sector partnerships to stimulate
mechanization of the rice sector established in at least 4
countries in SSA
For a better tomorrow for all