By David Whitehouse
Posted on Friday, 10 September 2021 15:29
Tata International Africa (TIA) wants to make acquisitions of John Deere dealerships to extend their Zambian distribution partnership, the CEO of Tata International Africa, Len Brand, tells The Africa Report.
The company is discussing the plan with John Deere, the maker of tractors and agricultural equipment, and will first target dealerships in East African countries, Brand says from South Africa. TIA bought distribution rights for John Deere products in Zambia in May, adding to the agreement it already had in Ghana. “We will continue down that Zambian road,” Brand says.
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Population growth means that Africa needs to increase the amount of food produced by the world’s least mechanised agriculture sector. According to the Oxford Business Group, about 75% of sub-Saharan agro-processing enterprises operate on an artisanal and semi-artisanal scale and so are constrained by low productivity. The OECD says sub-Saharan Africa’s self-sufficiency for major food commodities is decreasing overall, as the population is increasing faster than the growth in local food supply.
Brand argues that development must be based on a “business relationship” rather than aid. He sees the mechanisation of agriculture as an “untapped market” and key to the solution.
Tata International is the trading and distribution arm of India’s Tata Group. The company began African operations in Zambia in 1977. It is now present in 12 African countries and operates in automotive, agricultural equipment and chemicals.
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This year, the company expanded its commercial vehicle finance product, already available in Tanzania, Kenya, Nigeria, Ghana and Zambia, to South Africa. In March, TIA signed a partnership with NCBA Bank Kenya to finance Tata vehicles nationwide.
TIA sees vehicle distribution and finance as long-term African growth markets.
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