Washington DC, 10 February 2016 – Africa holds great market potential for agricultural machines, according to a recent survey among 171 manufactures of farm equipment conducted by the Agrievolution Alliance – a global network representing manufacturers of agricultural machinery – upon suggestion by the European manufacturers’ association CEMA and the World Bank.

1. How important is Africa
for your company?
How do you see the
future potential of
the agricultural
machinery market in
Africa?
How do you see the
role of public-private
partnerships in
developing
sustainable
mechanization in
Africa?
10 February 2016
Survey on the importance and future potential of the
agricultural machinery market in Africa (lead by CEMA)

2. Data sources
171 companies responded
16 countries representing the main suppliers of
tractors and other agricultural machinery
•Austria
•Brazil
•Canada
•China
•France
•Germany
•Hungary
•India
•Italy
•Japan
•Korea
•Turkey
•South-Africa
•Ukraine
•United Kingdom
•USA
2
0 10 20 30 40 50
Basil
France
Germany
India
Italy
Japan
USA
China
Austria
Canada
Turkey
Korea Rep
South-Africa
Ukraine
UK
Hungary
Number of responses per
country

3. 3
0
5
10
15
20
25
30
35
Not important Of little importance Of average importance Very important Absolutely Essential
How important is Africa for your company?%
CURRENT IMPORTANCE GROWTH IN IMPORTANCE OVER THE PAST 5 YEARS
0
5
10
15
20
25
30
35
Not important Of little importance Of average importance Very important Absolutely Essential
How important is Africa for your company, % ?
CURRENT IMPORTANCE GROWTH IN IMPORTANCE OVER THE PAST 5 YEARS
46.01%
43.30%

4. What has improved/worsened in your business
dealings with Africa in the past 5 years?
Worsened
• Political stability
• Currency exchange
• Import regulations
• Financing potential
• Growing competition locally
and from China and India
• Subsidies
• High volatility of commodity
prices
• Difficulties to find a strong
partner
Improved
• Demand for farm mechanization
• Technical knowledge
• Better understanding of the
farmers for quality products
• Understanding of the markets
• Communication and response
• Less corruption
• Distribution network
• More knowledge of how to trade
in Africa (north and south)
• Commercial farms
4

5. 5
0
5
10
15
20
25
30
35
40
45
No potential Little potential Avergae potential Great potential Very strong potential
How do you see the future potential of the
agricultural machinery market in Africa, % ?
EXPECTED MARKET POTENTIAL IN THE NEXT 5 YEARS EXPECTED MARKET POTENTIAL IN THE NEXTS 5-15 YEARS
73.60%
49.36%

6. What needs to improve in Africa for your company to
get more involved/invest more?
Government
•Policies and
regulations
•Business environment
•Political and
economical stability
•Development
mechanization strategy
•Reduced custom tariffs
•Less corruption
•Develop basic
infrastructure
Finance and Market
•Credit availability
•Reliable banking
system
•More stable currencies
•Payment issues and
line of credits
•Market dynamics
knowledge
Industry
•Develop dealership
network
•Companies needs to
know better each
other
•Exhibitions, trade fairs
and B2B meetings
•Local production
•Field testing of
equipment
Farmers and skills
•Technical know-how –
education
•Change in the
Agricultural methods
•Focus on quality rather
than price
•More commercial
farmers
•Awareness on
technology
6

7. 7
0
5
10
15
20
25
30
35
Not important Of little importance Of average
importance
Very important Absolutely Essential
How do you see the role of public-private partnerships in
developing sustainable mechanization in Africa, % ?
CURRENT IMPORTANCE EXPECTED GROWTH IN IMPORTANCE IN THE NEXT 5 YEARS

8. Which best practice features come to mind when thinking
about successful PPPs on ag mechanization in Africa?
• Exhibitions
• Knowledge
sharing
• Clusters
• Assembly
lines
• Technology
centers
• Demo farms
• Access to
credit lines
• Risk sharing
Finance
Education/
skills
Communication
Local
manufacturing
8