Kubota Signs MoU with Sumitomo Mitsui Banking Corporation to Form Business Alliance Aims to provide financing for agricultural machinery sales in Africa

Kubota Corporation (Head Office: Naniwa-ku, Osaka; President and Representative Director: Yuichi Kitao; hereinafter “Kubota”) and Sumitomo Mitsui Banking Corporation, Ltd. (Head Office: Chiyoda-ku, Tokyo; President & CEO: Akihiro Fukutome, hereinafter "SMBC") have agreed to form a business alliance to provide financing for agricultural machinery sales in Africa and have signed a memorandum of understanding (MoU) dated August 21, 2025. In Africa, rapid population growth and rising geopolitical risks are driving increased food demand and destabilizing supply chains. Against this backdrop, Kubota and SMBC aim to contribute to addressing Africa’s urgent food challenges by promoting mechanization, an essential factor for efficient agricultural production.

• In Africa, rapid population growth is driving increased food demand. In addition, Africa depends heavily on imports for food procurement, making challenges such as rising food prices and supply chain disruptions more apparent amid growing geopolitical risks in recent years. As a result, improving food self-sufficiency has become a pressing challenge. However, the number of farmers in Africa with access to agricultural machinery remains limited, making agricultural mechanization essential for improving productivity.
• In addition to leveraging its strengths in exporting and selling agricultural machinery for the rice cultivation market, Kubota established Kubota Kenya Limited in 2017 to strengthen its marketing capabilities. Furthermore, Kubota acquired India-based Escorts Limited as a subsidiary (renaming it Escorts Kubota Limited) and has been working to expand its business in Africa by utilizing the company’s product lineup and sales network.
• SMBC’s strengths lie in its extensive domestic and international network, including across Africa, as well as its financial expertise.
• Through this alliance, Kubota and SMBC will promote agricultural mechanization that contributes to addressing food challenges by offering financial services and other support when local distributors and government agencies procure Kubota’s agricultural machinery.