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African agricultural mechanization could lead to a mechanization divide, where only large farms have access to machines. Technological solutions such as scale-appropriate machines and institutional solutions like service markets offer hope for more inclusive mechanization. Two-wheel tractor-based service markets combine both technological and institutional elements, but there is limited research on their economic viability and challenges.

We analyze the economic viability of two-wheel tractor-based service provision based on data from service providers in Ethiopia, Burkina Faso, and Zimbabwe. We also examine the institutional framework conditions for such service providers based on qualitative interviews with these service providers and stakeholders such as machinery dealers, spare parts providers, and banks.

Two-wheel tractor-based service provision is economically highly viable, largely due to multifunctionality. Post-production services such as threshing and transportation are particularly lucrative. However, the emergence and economic sustainability of service providers can be undermined by bottlenecks such as access to finance, knowledge and skills development, access to fuel and spare parts, and infrastructure problems.

This is the first study on the economics of two-wheel tractor-based service provider models. Past studies have focused on large four-wheel tractors, but two-wheel tractors are different in many aspects, including regarding investment costs, repair and maintenance costs, capacity, and multifunctionality.

The purpose of this paper is twofold: first, it explores the influencing factors of the government’s trust decision-making in the private sector; second, it explores how these influencing factors affect the government’s trust decisions.

A theoretical model was established, and a questionnaire survey was conducted among 152 professionals. The collected datas were analyzed by the structural equation modeling (SEM) method.

The study identified four critical factors that influence the government’s decision to trust the private sector in public-private-partnership (PPP) projects. All the four factors have a positively correlated impact on the government’s trust decision-making. The structural equation path analysis shows that the most important factor affecting the government’s trust decision-making is the trustee’s (private sector) trustworthy characteristics, and the path coefficient is 0.92. The path coefficients of risk perception and the trustor’s trust tendency are 0.83 and 0.74, respectively. The influence of the legal system environment on government trust decision-making is moderate, with a path coefficient of 0.68.

This paper contributes to the literature in two aspects. First, the factors influencing decision-making to government trust in the private sector in PPP projects have been identified. Second, a comprehensive view of the mechanism of government trust in the private sector in PPP projects has been theorized by the SEM method.