AGCO, Your Agriculture Company, a global manufacturer and distributor of agricultural equipment and solutions, has signed a letter of intent (LOI) with the German Federal Ministry of Economic Cooperation and Development (BMZ) to implement a joint agricultural project in Africa
The potential project, subject to further talks, aims to make measurable contributions to increasing agricultural productivity and skills development, thereby boosting income and employment in African rural households.
“We expect that the collaboration between the BMZ, an important institution for international cooperation on agricultural projects, and AGCO, one of the world’s largest producers of farm machinery, to trigger significant synergies,” said Martin Richenhagen, president, chairman and CEO of AGCO.
The mechanisation activities of both the BMZ and AGCO are designed to contribute to the UN 2030 Agenda and Sustainable Development Goals (SDG) to eradicate extreme poverty and end hunger by 2030. The goals also aim to double the agricultural productivity of small-scale food producers, ensure sustainable food production systems and implement resilient agricultural practices.
“With the 2030 Agenda and SDG as a globally binding framework for action, cooperation between the German Development Ministry and the private sector is becoming increasingly important,” commented Dr Gerd Müller, federal minister for economic cooperation and development.
AGCO is a member of the Grow Africa initiative of the World Economic Forum (WEF) and the new alliance for food security and nutrition of the G8. The company contributes to the new vision for agriculture goals of the WEF to provide food security for all people in an environmentally sustainable way while generating economic growth and opportunity.
The BMZ provides companies with financial and technical support for joint projects. The partnership enables companies to make an effective and efficient contribution to the implementation of development objectives within the framework of their business activities. With its special initiative ‘One World – No Hunger,’ the BMZ aims to support agriculture and rural development through its Green Innovation Centres in African and Asian countries.