IFC and Guinea's central bank team up to promote leasing

Jun 26, 2014

The International Finance Corporation (IFC) has signed a cooperation agreement with the Central Bank of the Republic of Guinea (BCRG) to lay the foundation for leasing facilities to help small-scale entrepreneurs strengthen and expand their businesses.

The International Finance Corporation (IFC) has signed a cooperation agreement with the Central Bank of the Republic of Guinea (BCRG) to lay the foundation for leasing facilities to help small-scale entrepreneurs strengthen and expand their businesses.


The institution said in a press release that leasing is an innovative financing solution for small enterprises, which often lack the credit history or sufficient collateral required by most banks to finance the necessary equipment to heighten productivity.


"Leasing could play a catalytic role in the development and growth of the
small
and medium-sized business
sectors in Guinea, not least in the mining sector. The potential leasing market in Guinea is estimated at about $130 million (€95.5 million), at least, and we have already seen interest in the market from the financial sector," said Ibrahima Sory Soumah, IFC Country Representative for Guinea.

The IFC said that its Africa Leasing Facility will assist Guinea in creating a legislative and regulatory environment
favourable
for leasing, providing capacity-building for leasing stakeholders, and mobilising investment in the
country's
leasing industry.


Over the past five years, IFC’s Africa Leasing Facility has trained more than 10,000 small business owners.ADNFCR-2976-ID-801731162-ADNFCR