IFC supports the development of leasing solutions in East Africa
The Kenyan and Tanzanian branches of the leasing institution Alios Finance have received the support of the International Finance Corporation (IFC).The Kenyan and Tanzanian branches of the leasing institution Alios Finance have received the support of the International Finance Corporation (IFC).
The IFC granted on July 20th a €3.2 million loan to Alios Finance Tanzania and €4 million To Alios Finance Kenya.
"In markets such as Kenya or Tanzania, where small enterprises are in short supply, leasing products will help these companies purchase the equipment they need", IFC official Aida Kimemia told Jeune Afrique newspaper.
"Tanzania is a virgin market. However, in Kenya, there are many leasing providers such as commercial banks," added Alios Finance Operations Director Mahdi Ben Hamden.
The group, which had €173.6 million in liquid assets at the end of 2010, offers rentals with an option to buy and long term rentals, but also provides equipment and consumer loans in nine African countries.
Leasing is an efficient financing tool for SMEs, which often have difficulties to access credit through banks. It allows companies to obtain the necessary equipment without the need for bank loans.
The IFC is one of the main sponsors of the African Leasing Association (AFROLAESE), which includes a dozen African countries and works to improve the legal environment, create awareness of leasing solutions amongst SMEs and the general public, organises training sessions and promotes new products development.