Tanzania: BOA launches leasing facility
Leasing is considered an efficient financing tool for SMEs.Bank of Africa (BoA) Tanzania has introduced a leasing finance facility targeting companies in various sectors such as construction, transport, information technology, tourism and oil and gas.
"The facility provides an alternative source of credit that is specifically designed to accommodate acquisition of different assets," BoA Enterprise Banking Head, Davikarani Williams told The Citizen.
She added that the facility offers more benefits than traditional asset financing methods as it helps to maximise the cash flow of the company.
Leasing is indeed considered an efficient financing tool for small and medium-sized enterprises (SMEs), which often have difficulties
accessing credit through banks. It allows companies to obtain the necessary equipment without the need for traditional loans.
BOA started operations in Tanzania in June 2007 after acquiring Eurafrican Bank, which had been operating in the country since September 1995.