Tractor hiring service to increase productivity

Sector: Agriculture and food

Year of establishment: 2011

Turnover: USD 200,000 – USD 300,000

Investment need: USD 300,000

 

Tractor hiring service to increase productivity

They provides affordable tractor hiring services to smallholder farmers in Uganda. These farmers previously relied on manual labor and ox-ploughs. Affordable mechanization helps them increase productivity and therefore increase their income.

The company is currently working with farmers in Eastern Uganda. They have signed memorandum of understanding (MOU) with farmer groups in Bugiri, Iganga and Pallisa districts. Seven clusters with 30 farmers groups containing 815 members in total have signed MoUs.

Entrepreneur and Team

The company is owned by two shareholders with equal ordinary shares. One of the co-founders is a business controller and experienced female entrepreneur. A Dutch angel investor is supporting the pilot project.

Turnover and Investment need

The company is looking for a total investment of USD 300,000 for the post pilot scale up phase.

The funds will be used to purchase more tractors to avail to the numerous interested smallholder farmers for hire.

Impact

  • The tractor hiring services will lead to increased productivity and hence increased income for smallholder farmers. Already 815 farmers in Eastern Uganda expressed their interest for this service.
  • The entrepreneur is training several unemployed youth to operate the tractors for aspecified period, after which they are free to buy, own and operate their own similar tractors. This will then open up the opportunity for similar youth to gain the skill and generate an income.

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