Africa Agriculture Tractors Market Forecasted to Grow at a CAGR of 5.1% in coming years

January, 28th 2020

The agriculture tractor market in Africa was worth USD 2.9 billion in 2018 and is forecasted to grow at a CAGR of 5.1% during 2019-2024.

Until last decade, mechanization was a neglected element of agricultural and rural development polices in Africa. However, due to the implicit limitations in terms of energy and operational output associated with traditional methods of farming, more and more African countries are pushing for mechanized agriculture systems. The African farming systems is the least mechanized of all continents. Africa has less than 2 tractors per 1000 ha of agriculture land.

The African continent has been witnessing strengthening economic developments since last decade. The economic prosperity has been leading to a shift towards farm mechanization. The growing shortage and deteriorating quality of human labor in most countries is as a result of ageing farmer population and rural-urban migration of the able youth. Commercialization of agriculture, seasonal labor shortages, declining number of draught animals in SSA has also paved way for mechanized agriculture system. Moreover, the availability of fuel in small villages also complements the adoption of mechanization in agriculture. The increasing availability of complementary inputs such as improved seeds, fertilizers and water has also led to mechanized agriculture system. All these factors are creating conducive ecosystem for the agriculture tractor market in Africa..

Several factors are limiting the adoption of mechanization and hinder Government and private sector investments in farm mechanization.

The Sustainable Development Goals of the African nations requiring protection of natural resources while producing food for the global growing population demands improved access to inputs such as seed, fertilizer and irrigation water, along with increased access to machinery. The agriculture in Africa is fragmented among many small land holders. The tractors suitable to small farm holdings such as two-wheeled tractors (2WTs) and their requisite accessories are the opportunity section in the region. Tractors designed for women is another opportunity segment.

Source: businesswire.com