Minutes from the 30/06/2020 meeting between CTI Africa (CTI) and

Head of Credit Yako Microfinance.

This meeting was attended by Mr. T.V.Balasubramanian Head of Credit (Yako Microfinance),
Mr. Yariv Ofek Executive Advisor (CTI Africa), Mr. Daniel Nsaba Buturo (GAT3WAY) and
Luyinda Jerry (GAT3WAY). The following were the main points from the meeting:

● Mr. Buturo and Mr. Yariv informed Mr. Balasubramanian about the programme to
support local Ugandan subsistence farmers through their endeavours to mechanise the
agricultural sector in Uganda. They added that 24, 25hp smallholder farmers' tractors
had arrived in Uganda and were being stored in Bugolobi but Mr.T.V.Balasubramanian
seemed to be aware of all of this and was interested in hearing more about this
programme.

● Mr. Buturo said that the tractors, which were made in Africa and were designed solely for
smallholder farmers, were primarily procured for the purpose of establishing a leasing
programme for smallholder farmer groups in Uganda. They added that the essence of
the leasing programme comprises the lease of a tractor unit to smallholder farmer
groups. Each tractor unit consists of a tractor, a plough, a trailer, training for 2 farmers
within a smallholder farmer group to become maintenance engineers, amongst other
additional services.

● Mr. Buturo highlights that the major target of this programme at this stage would be the
small scale farmers because of the available tractor’s and their ability to effectively
handle such duties. They go ahead to mention CTI’s partnership with the Ministry of
Agriculture and their main objective to introduce this programme to already existing
Farmer Groups in Uganda.

● Mr. Buturo explains how this digitized machinery will assist these farmers in several
ways and streamline every process, from procurement to production and finally
distribution and also reduces time.

● A partnership between CTI and Gat3way and the Ministry of Defense was mentioned by
Mr. Buturo where they offered storage for the tractors.

● Mr. Balasubramanian asked which location CTI was focussing on distributing these
tractors to and Buikwe farms of 30-40 farmer groups were the ideal target and starting
point for CTI. Mr. Buturo also mentioned that there was potential demand for all 24
tractors currently available.

● Mr. Balasubramanian asked Mr. Buturo and Mr. Yariv what prices the tractor’s would be
going for on both programmes both stand alone and leasing and the turnover that was
expected. Mr. Buturo answered $8,000 as a stand alone price and $10,000 for leasing
the tractors and a turnover of $1,000 per tractor each month.
● Mr. Balasubramanian asked why the lease option was more expensive than the
purchasing option and the answer was that the leasing option has extra packages such
as addition of a plough,ridge,training for two members of a farmer group and mobile
phones.

● Mr. Balasubramanian also asked how issues such as repairing costs, mechanics and
availability of spare parts can be solved and Mr. Buturo answered by saying that all
these bottlenecks can be faced due to the Covid-19 pandemic and can all be solved
when travel restrictions and bans are lifted.

● Mr. Balasubramanian also wanted to know what type of support CTI can provide if
farmers can not pay off the tractors and end up being impounded. Mr. Buturo answered
by saying agreements shall be signed on such matters in the future.

● Mr. Balasubramanian -Can the tractors be sold on credit basis ? - this can be
implemented in the future when the company has accumulated some income

● CTI interest 14%, warranty 12 months, millage 30 acres

● Mr. Buturo should email Yako microfinance an introductory email with millage
requirement details and buy back info if Yako is to sell the tractors back to CTI.

● A checklist on the criteria farmers should meet it to be constructed by YAKO