Frequently Asked Questions
Why Is IFC Promoting Leasing In Sub Saharan Africa?
IFC’s mission is to promote and support sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. Leasing significantly increases domestic investment in developing countries. It is an effective financing mechanism for small and medium-sized businesses, since they can gain use of a productive asset with only an initial cash deposit. Typically, most SMEs in sub-Saharan Africa do not have enough collateral or credit history to meet the requirements of traditional bank financing. IFC supports leasing because of its proven developmental impact, and its relevance for sub Saharan Africa's private sector.
What Does the IFC Africa Leasing Facility Do, and Whom Does it Target?
The IFC Africa Leasing Facility promotes leasing as an alternative form of financing for businesses in Africa. It targets leasing companies, government agencies, lessees, potential lessees and investors.
Can I Obtain A Lease Through The Program?
The IFC ALF 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 provides information on leasing to the business community and general public. In many cases, the program will refer businesses to 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 sub-Saharan Africa. The program works with financial institutions and other partners to encourage investment in leasing. As part of this effort, IFC is considering potential leasing investments in the region through both equity and loan financing, in line with established IFC investment strategy.
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 the 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.