SECO-IFC Leasing Program Helps Spur Fivefold Increase in Leasing in Tanzania
In Johannesburg:
Kimberlee Brown
Telephone: +2711 731 3175
Email: kbrown@ifc.org
In Dar es Salaam:
Moyo Ndonde
Telephone: (+255) 22 216 3200
Email: mndonde@ifc.org
Dar es Salaam, Tanzania, December
18, 2008—IFC, a member of the World Bank Group, announced today that
its leasing program in Tanzania has helped increase the volume of leasing
in the country approximately fivefold over the last three and a half
years, laying the foundation for a sustainable leasing sector and helping
boost Tanzania’s economic output.
According to an IFC estimate, the outstanding leasing portfolio in Tanzania
as of December was roughly $150 million, compared with $32.5 million when
the program started operating in May 2005. At least four new lease providers
have also started operations since the program’s launch and four more
may do so in 2009.
The program is implemented by IFC, with funding from both IFC and Switzerland’s
State Secretariat for Economic Affairs, or SECO. It will be completed at
the end of December.
“Leasing is an important tool for small and medium enterprises with limited
ability to obtain term financing from banks,” said Mary-Jean Ndlovu, Deputy
General Manager of IFC’s Private Enterprise Partnership for Africa. “The
SECO-IFC Leasing Program has made a significant contribution to increasing
financial leasing in Tanzania.”
Over its period of operations, the program has:
- Advised Tanzania’s government and central
bank on building a favorable legislative, regulatory, and tax environment
to develop financial leasing, leading to the enactment of a new financial
leasing law in April
- Provided business development support
to 45 institutions in order to support the launch or expansion of leasing
services
- Conducted targeted public information
and awareness campaigns on leasing issues which reached over 2000 people
- Supported the establishment of a Tanzania
Leasing Association
- Supported initiatives to increase the
lease of small equipments to micro enterprises
- Disseminated technical publications
and materials to over 3,000 people
IFC will continue to support leasing in Tanzania by providing services
such as technical advice and training to the Tanzania Leasing Association.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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