Inclusive Tractor Financing Reaches Ethiopia

Heifer International, Hello Tractor and Ethiopia’s Ministry of Agriculture have partnered to launch Heifer and Hello Tractor’s innovative pay-as-you-go financing model in Ethiopia, unlocking mechanization access for the country’s smallholder farmers.

Through the financing model, prospective tractor owners can acquire a tractor through a long-term loan arrangement that requires only a small initial down payment. In return, they commit to providing ploughing and other mechanization services to surrounding farmers using their tractor. Using Hello Tractor’s digital payment system, a portion of the income they earn from these services is automatically deducted to repay the loan. Once the full loan value is recovered, the tractor ownership is formally transferred to the farmer.

This affordable financing mechanism enables qualified farmers to gradually become tractor owners while simultaneously expanding local and regional access to reliable mechanization services.

A New Era for Ethiopian Agriculture

The process reached a major milestone in October 2025 with the official launch of the financing model as a collaboration of Heifer International, Hello Tractor and the Ministry of Agriculture under Heifer’s Africa Tractorization Strategy – Ethiopia Project (ATSEP).

The launch, held in Addis Ababa, brought together a diverse group of stakeholders, including government officials, development partners and private-sector leaders, with a shared goal of revolutionizing access to mechanization for smallholder farmers and creating jobs for youth.

In her keynote speech, Dr. Sofiya Kassa, state minister for agricultural investment and input supply development, described the initiative as “a glimpse of the future, where Africa’s agriculture is not just mechanized, but smart, connected and inclusive.”

“This launch is a milestone — a powerful example of what can be achieved when the government, the private sector and development partners unite with a shared vision: to unlock agriculture’s true potential and ensure that no farmer is left behind,” she said.

A Young Man with a Big Dream

Mobilizing young people, like 20-year-old Dugomsa Dedefo, and local farmers was critical to activate the pay-as-you-go initiative in the country.

Dugomsa first learned about the pay-as-you-go tractor financing during a training session to become a Hello Tractor booking agent, a field worker responsible for mapping farms and scheduling tractor rental services on behalf of owners. He immediately recognized its potential beyond just a financial tool; he saw a way to change lives.

“What inspired me was my ambition to change the cultural way of farming to a mechanized one — for my family and for my community,” Dugomsa said. “As a young person in a country where job opportunities are rare, I saw it as a chance to start my road to success.”

To demonstrate his readiness to succeed as a booking agent and operationalize the project in his community, Dugomsa began connecting farmers in remote areas with tractor services through Hello Tractor’s digital platform, working to find available machines and encouraging operators to fulfill bookings. This task was often difficult, especially when farmers’ demand was high and tractors were scarce. But that challenge became a stepping stone.

“It was tough. Some farmers were hesitant to trust the booking platform, and I had to walk long distances to reach remote areas with poor network coverage,” Dugomsa explained. “But I kept pushing. It was worth it.”

Bridging the Access Gap Through Innovation

Smallholder farmers — the backbone of the nation’s agricultural sector — have struggled for decades to access affordable mechanization. Heifer and Hello Tractor’s pay-as-you-go model addresses this issue by making it possible for farmers to use tractors without incurring upfront costs; they simply pay for the hours they use via Hello Tractor’s digital platform.

Timoteos Borsamo, interim country director and signature program technical lead at Heifer Ethiopia, emphasized the initiative’s broader vision: “By combining technology and innovative financing, we empower farmers to increase yields, create jobs and build stronger economies. This is not just mechanization; it’s empowerment and scaling productivity nationwide.”

For Dugomsa, technology has become a bridge between tradition and transformation. As a booking agent, he has connected more than 100 farmers to essential services through Hello Tractor’s mobile platform, and he’s just getting started.

“Time is a very important factor in farming,” Dugomsa said. “Now I’ll be able to execute farming services on time and offer affordable rates to the people in my community. I’ve seen farmers struggle to get their land serviced on time. Now I can help them and support my own family too.”

The amount of land that farmers have cultivated with tractors has grown from 5.7 percent in 2020 to nearly 25 percent in 2025, a substantial increase in just five years, according to Ethiopia’s Ministry of Agriculture. However, supply still lags far behind the estimated nationwide demand of 400,000 tractors.

Technology That Connects Farmers and Opportunity

Hello Tractor’s mobile platform is central to closing this gap with the pay-as-you-go model, connecting farmers, tractor owners and tractor operators. The platform’s GPS tracking and data analytics enable efficient bookings, tractor monitoring and transparent payments.

James Macharia, pay-as-you-go lead for Hello Tractor, summarized the process: “With a 5 percent down payment and a booking of 500 hectares, farmers, agents and entrepreneurs can start their journey to tractor ownership. Sometimes, we waive the down payment if demand is strong.”

At the October launch, Hello Tractor provided 10 tractors to local farmers so they could begin to unlock the opportunities of mechanization and efficiently cultivate more land. “Currently, 274 tractors in the [pay-as-you-go] program serve 132,500 hectares and over 293,000 farmers across Kenya, Uganda, Nigeria, Rwanda, and now Ethiopia,” Macharia said.

The model is initially being rolled out across Ethiopia’s Oromia, Amhara, Central Ethiopia, Sidama and Somali regions.

Driving the Future of Farming

With a focus on engaging women and young people, the project leverages technology, finance and partnerships to support the government’s goals for youth employment, gender inclusion and climate-smart agriculture.

“This initiative reflects our commitment to ending hunger and poverty while caring for the Earth. It shows the potential of technology, finance and development to benefit smallholder farmers,” said Borsamo.

Heifer International’s community-driven approach ensures that this transformation in access to mechanization reaches the grassroots, working alongside smallholder farmers to increase their incomes, improve food security and strengthen local economies.

The launch of the pay-as-you-go tractor financing model is not an endpoint in this work, but rather the beginning of a new chapter for Ethiopian agriculture.