• McCormick Tractors enters Ethiopia through an exclusive distribution partnership with Kerchanshe Group.
• Ethiopia plans to increase its tractor fleet from 20,000 to 65,000 under its ten-year agricultural strategy.
• The African agricultural machinery market is projected to reach $4.65 billion by 2030, growing 7.8% annually.

Ethiopia’s agricultural sector contributes 34% of GDP. The government aims to modernize the sector and pursue growth in agricultural mechanization. This ambition creates opportunities for foreign suppliers.

McCormick Tractors, an Italian manufacturer owned by Argo Tractors, announced on Thursday, December 4, its entry into the Ethiopian market through a partnership with local conglomerate Kerchanshe Group, which operates in agricultural production and trading.

The agreement makes Kerchanshe the exclusive distributor of McCormick tractors. The company will manage nationwide sales and after-sales services. This arrangement gives McCormick direct access to Ethiopia’s growing mechanization segment.

A fast-growing market

McCormick gains entry into one of East Africa’s most dynamic farm markets, where mechanization remains limited and manual labour remains dominant. Official data show that tractors currently cultivate about 5 million hectares, representing only 27% of Ethiopia’s estimated 18.4 million hectares of arable land.

The Ministry of Agriculture plans to more than triple the country’s stock of agricultural machinery under its ten-year development strategy. The plan aims to raise the number of tractors from 20,000 to 65,000 and to expand the fleet of combine harvesters from 2,700 to 15,000.

Ethiopia’s tax policy strengthens this growth trajectory. Since 2020, the government has authorised duty-free importation of machinery and related equipment to encourage leasing services and widen farmers’ access to technology.

A competitive landscape for foreign entrants

McCormick joins a market already targeted by several foreign players attracted by Ethiopia’s mechanization potential. In June 2023, Chinese manufacturer YTO China-Africa Machinery Corp (Camaco) signed an agreement with state-owned Ethio-Engineering Group (EEG) to build a tractor assembly plant with a capacity of 10,000 units per year.

The same year in July, another Chinese firm, Zoomlion Agriculture Machinery Co., formalised a partnership with the Ethiopian Agricultural Business Corporation (EABC). The deal includes machinery supply, spare-parts distribution, maintenance services and training aimed at expanding mechanization.

More recently in August 2025, Japanese manufacturer Kubota, present through local distributors such as Ultimate Motors Plc, announced that it intends to accelerate expansion in Africa with support from Sumitomo Mitsui Banking Corporation (SMBC).

Strengthening presence in Africa

McCormick strengthens its African footprint through its Ethiopian entry. Until now, the brand’s presence on the continent had been limited to South Africa, through Argo Tractors South Africa. The company considers this expansion strategic given Africa’s growing demand for agricultural mechanization.

Market projections reflect this momentum. Mordor Intelligence values the African farm-machinery market at $3.20 billion in 2025 and expects it to grow at 7.8% annually to reach $4.65 billion by 2030. The consulting firm attributes this growth to rising mechanization gaps, targeted subsidies, the expansion of digital leasing platforms and the adoption of climate-smart equipment that makes tractors essential across a wide range of African production systems.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange Jason Quenum