Senegal: New law adopted to promote leasing
The Senegalese parliament has adopted a new bill aiming to promote leasing in Senegal to improve access to finance for small and medium-sized enterprises, APS news agency reports.Senators voted on December 27th on bill number 28/2011, which is centred on securing the interests of parties involved in the transaction by defining rights and duties of the leasing policy holder, the lender and the provider, as well as the terms of contract termination.
Leasing is suffering from a lack of popularity in Senegal. This finance product only accounts for up to 0.2 percent of the financing of private investments, although in Tunisia and Mauritius this figure is 11 percent and 25 percent respectively, according to figures from Budget Minister Abdoulaye Diop, quoted by APS.
This situation is due to the lack of awareness of the tax and bookkeeping system, as well as a regulation and safety problem on transactions in the current Senegalese legislation, according to the minister.
"That is what this new law is trying to correct, in order to bring a safer legal frame in terms of leasing," he said.
According to Mr Diop, the bill could help the leasing market generate CFAF 80 billion (€122 million) within ten years,
compared with CFAF 5 billion in 2009, Ecofin news agency reports.