IFC launches new program to promote leasing in Guinea

Jun 13, 2013

The International Finance Corporation (IFC) has announced on Monday (June 10th) the launch of its Africa Leasing Facility in Guinea, which will work to promote leasing as an alternative financing method for the development of small and medium-sized enterprises (SMEs).

The International Finance Corporation (IFC) has announced on Monday (June 10th) the launch of its Africa Leasing Facility in Guinea, which will work to promote leasing as an alternative financing method for the development of small and medium-sized enterprises (SMEs).

The program's objectives are to create a favourable legal and fiscal environment for leasing, to build the capacities of key actors in the industry and to mobilize investment in the sector on the continent, according to an IFC press release.

Leasing, which is a fixed term rental contract between a company and a financial institution with an option to buy at the end, facilitates the financing of the equipment needed by SMEs to increase their productivity.

Small businesses indeed often encounter problems
accessing
loans from commercial banks due to a lack of credit history or because they struggle to provide the guarantees required by most banks.

Leasing thus represents an alternative solution, "balancing the needs of each party with safety, reliability and convenience.
It will undoubtedly contribute to the development of SMEs investment operations and stimulate growth,"said Governor of the Central Bank of Guinea Lounceny Nabe.ADNFCR-2976-ID-801598354-ADNFCR