Specialist agricultural investor AgDevCo has committed $7.2 million in fresh financing to EFAfrica Group (EFAG), an equipment leasing firm that provides tractors, trucks, and other machinery to small and medium-sized enterprises (SMEs) and farmers across Africa.
The capital, structured as a long-term loan, marks a follow-on investment in EFAG, one of AgDevCo’s portfolio companies. The funding is aimed at expanding EFAG’s ability to offer larger leases to agribusiness corporates and service providers, deepening the firm’s role in strengthening rural economies and advancing agricultural mechanization.
EFAG currently operates in Kenya, Tanzania, and Zambia, where it helps more than 1,500 entrepreneurs acquire productive assets. Lease values typically range between $10,000 and $80,000, making equipment accessible to farmers and SMEs often excluded from traditional bank financing due to limited collateral and thin credit histories.
“By enabling SMEs to access the machinery they need, we are supporting sustainable economic growth in rural areas and helping to secure regional food supplies,” said John Jakobsson, investment director at AgDevCo.
EFAG’s Chief Operating Officer, Nicomed Bohay, described the deal as a catalyst for scaling mechanization. “This investment empowers agribusinesses and farmers to accelerate agricultural transformation across East and Southern Africa,” he said.
The investment reflects a broader push to address Africa’s agricultural financing gap, estimated by the African Development Bank at $80 billion annually. Mechanization remains a critical bottleneck for smallholder farmers, who produce most of the continent’s food but face persistent barriers to finance and infrastructure.
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