www.lonrho.com
Lonrho is a pan-African company with a diverse portfolio of investments focusing on Africa. Its investments range from primary infrastructure to transportation, support services, hotels and natural resources. The Company is focused on servicing Western investment and African business by investing in emerging sectors across Africa, creating hubs of business through key investments. Lonrho is re-establishing a significant presence on the African Continent through strategic investments across sectors in fast-growing African economies.
Lonrho expands John Deere dealerships into Tanzania and South Sudan
Lonrho (LON:LONR) today announced the expansion of its exclusive John Deere dealership network in Africa.
It is adding two new territories, Tanzania and South Sudan, to its current business network. Lonrho is already the exculsive supplier of John Deere tractors and farming machinery in Mozambique and Angola.
"The expansion of Lonrho's exclusive John Deere dealerships, adding Tanzania and South Sudan, builds on the company's excellent relations with John Deere and our continued aim to develop John Deere distribution in the agricultural markets in Africa,” said chairman David Lenigas.
“The established Lonrho / John Deere dealerships in Mozambique and Angola are demonstrating that the fully supported approach offering comprehensive maintenance, training and spare part support, and not just sales, delivers increased market share and long term growth for the businesses."
According to Lonrho, Tanzanian growth will outperform both sub-Saharan Africa and global growth rates over the coming years. It believes that agriculture will contribute 45 per cent of the country’s GDP.
It says the market for agricultural equipment is already substantial in Tanzania.
But the market will grow quicker in the future as the Tanzanian government is giving significant attention to the sector. A government backed public-private partnership aims to stimulate commercial scale agricultural productivity, Lonrho added.
Lonrho is paying US$1.4 million to acquire the Tanzanian business. This is being funded from the firm’s existing cash reserves.
Meanwhile, Lonrho says the South Sudan territory has a vast natural resource base and huge agricultural potential. According to Lonrho more than 90 per cent of the country’s land being suitable for farming.
Additionally significant foreign direct investment and international donor funding is expected to support large scale agricultural development in the future.
