WHY IS IFC PROMOTING LEASING IN RWANDA?
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. Leasing increases domestic investment significantly in many countries. It is an effective financing mechanism for small and medsized businesses, since they can gain use of a productive asset with just an initial cash deposit. Typically most small and medium enterprises in Rwanda do not have enough collateral or credit history to meet the requirements of traditional bank financing. IFC therefore supports leasing owing to its proven developmental impact, and its relevance for Rwanda's private sector.
WHAT DOES THE IFC RWANDA CEDP LEASING DEVELOPMENT PROGRAM DO, AND WHO DOES IT TARGET?
The IFC Rwanda CEDP Leasing Development Program promotes leasing as an alternative form of financing for businesses in Rwanda. It targets leasing companies, government agencies, lessees, potential lessees and investors.
CAN I OBTAIN A LEASE THROUGH THE PROGRAM?
The IFC Rwanda CEDP Leasing Development Program is an advisory services program that works with stakeholders in the financial sector to promote leasing. It does not provide leasing services to consumers directly, but works to support potential and existing leasing providers to start and grow their leasing operations. The program can provide information on leasing to the business community and general public. In many cases, the program will refer businesses to the leasing providers, who will then assist in providing leasing services.
DOES THE PROGRAM INVEST IN LEASING COMPANIES?
One of the program’s objectives is to increase the volume of investment in the leasing industry in Rwanda. Thus, the program aims to work actively with financial institutions and other partners to encourage investment in leasing. As part of this effort, IFC is actively considering potential investments in the country's leasing market through both equity and loan financing in line with established IFC investment criteria.
I HAVE A BUSINESS PROPOSAL AND I AM INTERESTED IN ACCESSING LEASE FINANCE. WHAT CAN THE PROGRAM DO TO HELP?
The leasing program will be happy to advise on advantages of leasing versus purchasing. We will, suggest possible suppliers, provide training and refer you to financial institutions that have leasing operations. We will also follow up to find out whether they were able to help you.
