Hello Tractor has stood out as a trailblazer in agricultural finance, through inclusive lending and laying ground of opportunities for Africa’s smallholder farmers.
This is according to the 2024 Aceli Financial Report, which indicates Hello Tractor’s performance in agri-SME lending outpaced the profitability of traditional financial institutions.
The report analysed about 32,600 loans worth $1.98 billion across Kenya, Rwanda, Tanzania, Uganda, and Zambia from 2020 to 2023.
According to the report, Hello Tractor hit a 7.2% in profit to outperforming commercial banks (3.5%), non-bank financial institutions (-6.8%), and social lenders (-16.8%).
The record profit is anchored on innovation, among them pay-as-you-go model, 60-month loan terms, and a robust network of hub-based after-sales support, to tractor uptime and borrower confidence.
Point to note is that 100% of Hello Tractor borrowers were previously unbanked, compared to just 22% for commercial banks.
Hello Tractor has unlocked financing for underserved rural entrepreneurs by underwriting loans based on the productive use of tractors rather than individual credit histories.
Also Read: Absa Targets 300 Farmers in Ksh.500 Million Financing Plan After Deal with Hello Tractor
Of the 88 loans facilitated with a $2.5 million investment from Heifer International, 76% ranged between $50,000 and $200,000, with an impressive 100% repayment rate among first-time borrowers.
The company’s portfolio health shows 95% health rate compared to the 86% average for commercial banks, reflecting Hello Tractor’s tech-enabled cost efficiency and low credit losses, challenging the notion that rural lending is inherently risky.
“Our collaboration with Heifer International through the Mechanization for Africa Initiative has clearly shown that smallholder farmers and rural entrepreneurs are viable and profitable customers,” said Jehiel Oliver, CEO of Hello Tractor.
The partnership with Heifer International has been pivotal, blending local innovation, long-term capital, and data-driven operations to scale impact.
Heifer’s support in the deal includes training and certifying local youth as technicians, ensuring reliable tractor maintenance and building trust among financiers and farmers.
“This report validates our belief that rural communities offer significant investment potential,” said Adesuwa Ifedi, Senior Vice President for Africa Programs at Heifer International.
