Business news

MINSK, 4 April (BelTA) – The Belarusian tractor engineering company MTZ intends to start assembling its tractors in Nigeria. MTZ and the Nigerian company Capital Equipment Limited signed the relevant memorandum of understanding in the Belarusian Chamber of Commerce and Industry (BelCCI) on 4 April, BelTA has learned.

BelCCI Chairman Vladimir Ulakhovich and Ambassador Extraordinary and Plenipotentiary of Nigeria to Russia with concurrent accreditation to Belarus Steve Davies Ugbah took part in the signing ceremony.

Bashir Yusuf, CEO of the Nigerian company Capital Equipment Limited, said that the Nigerian market is large and needs agricultural machines, in particular, tractors. At present 95% of the Nigerian farming enterprises lack machines. This is why the establishment of the joint venture will allow the Belarusian side to penetrate this huge market and reach markets of other African countries later on.

According to Bashir Yusuf, the signing of the memorandum is not a symbolic gesture. A manufacturing enterprise will be established to produce commercial results. “I believe we will be able to successfully compete with other brands, which are present on our market. Assembling the tractors in Nigeria using cutting-edge Belarusian technologies will give the enterprise an edge,” he explained.

In turn, Pavel Burmistrenok, Deputy Head of the Office for Non-CIS Promotion and Sales at MTZ, said: “The Nigerian market is very promising for us. Joint efforts of Belarusian and Nigerian partners will allow MTZ Company to secure a hold on the market in addition to supplying the farmers with decent machines.”

According to BelCCI Chairman Vladimir Ulakhovich, the memorandum represents the first step but a very serious one on the way to successful cooperation. “Despite existing hindrances our countries have multiple opportunities for expanding cooperation. It is important that cooperation and joint projects are supported by our head of state and by the Nigerian government, by the diplomatic missions of the two countries,” he stated.

The Nigerian ambassador urged the businessmen to cooperate more actively. He said he hopes that bilateral trade and economic cooperation will expand soon. “In business it is important not to lose time. It is important to use the available opportunities and not to get stuck at the beginning of the road. In turn, the embassy and I personally will do everything to ensure the success of the future joint venture,” assured Steve Davies Ugbah.

Ready-made MTZ tractors will be shipped to Nigeria as the first step in setting up the assembly enterprise. Later on the sides will do the necessary research, examine sites in Nigeria for starting the assembly of agricultural machines, and work out the business plan of the future enterprise.