• Kubota signed a 3-year agreement with SMBC to boost farm machinery sales in Africa.

• The Japanese group aims to ship 4,000 tractors annually to Africa by 2030, five times current levels.

• Africa’s tractor market is projected to reach $2.6 billion by 2030, driven by large farms and government support.

Japanese industrial group Kubota, a manufacturer and distributor of farm machinery, is stepping up its Africa expansion strategy. On August 21, it signed a three-year memorandum of understanding with Sumitomo Mitsui Banking Corporation (SMBC) to support sales and financing of agricultural equipment across the continent.

The agreement, concluded on the sidelines of the 9th Tokyo International Conference on African Development (TICAD 9) held in Yokohama from August 20 to 22, will give Kubota new facilities to strengthen its machinery offering.

According to the official statement, SMBC will support Kubota’s initiatives by providing services such as corporate finance, trade finance, and financing through export credit agencies, contributing to agricultural productivity and sustainable development across Africa.

Kubota president Yuichi Kitao had already announced in February at the Japan-India-Africa Business Forum in Tokyo that the group aims to ship 4,000 tractors annually to Africa by 2030, five times its current sales.

Kubota entered Africa in 2017 with a subsidiary in Kenya. In 2022, it acquired Indian company Escorts Limited, whose Farmtrac and Powertrac brands are widely sold in Nigeria, Angola, Burkina Faso, Egypt, and Tanzania, a key step in its Africa strategy.

A growing market

Africa’s tractor market is expanding quickly. In sub-Saharan Africa, most farming still relies on human and animal power, but demand for mechanization is rising.

According to Indian research firm Mordor Intelligence, the African tractor market is valued at $1.9 billion in 2025 and is forecast to grow at 6.5% annually to reach $2.6 billion by 2030. Growth is driven by the rise of large export-oriented farms and government support programs, including subsidies, farm credit, and mobile-based tractor leasing schemes.

Kubota’s expansion plan comes as competition intensifies. In July, Ghana signed a deal with Turkish manufacturer Hattat Traktör to set up a tractor assembly unit. More recently, on August 13, Senegal signed a memorandum of understanding with Turkey’s Albayrak Group to establish a tractor assembly plant.