Leasing represents an attractive financing alternative especially in challenging and high-risk markets such as Afghanistan. IFC worked with the Afghanistan Finance Company, the country's first leasing company, to build the capacity of its staff and improve outreach to clients.
The objective of IFC’s Leasing program was to train Afghanistan Finance Company’s staff in credit appraisal, marketing, and risk management. The company's CEO underlined that, “Through IFC’s advisory services, AFC staff and management have gained a better knowledge of the leasing industry and have learned how to successfully operate a sustainable leasing company. The staff’s increased knowledge on credit procedures and lease calculations has improved client file processing and decreased the transaction cost per client to the company.”
In early 2006, AFC successfully increased its disbursed portfolio by over 577 percent--going from $220,157 to about $1.5 million and provided 22 new small and medium enterprises with access to lease finance.
As a result of staff's new and enhanced skills and an increased outreach to clients, in April 2006, AFC signed an agreement with the Center for International Private Enterprise to develop sustainable business planning, access to credit, and business development services in four major provinces in Afghanistan through a partnership with the Afghanistan International Chamber of Commerce. Through this agreement, AFC staff will continue to collaborate closely with the private sector and major business sectors throughout the country, while marketing its products, educating the business community about leasing, lending, and business planning.
For additional information contact:
Egidio Germanetti
Communications Analyst
Cairo, Egypt
Tel: 20-2-461-9140
E-mail: egermanetti@ifc.org
