Tunisie Leasing looking to expand in Africa
The company wants to tap into the growth potential of sub-Saharan markets.Tunisian leasing company Tunisie Leasing has announced plans to expand on the African continent through its majority stake in Alios Finance, already present in nine countries.
Tunisie Leasing acquired in 2014 a 59.34 percent stake in Alios Finance, a leader in leasing and consumer finance in Africa.
"On one hand, Tunisie Leasing is a success story in Tunisia and its neighbour country through its subsidiary Maghreb Leasing Algeria (MLA). On the other hand, Alios Finance is the only finance company to be based in nine sub-Saharan countries (Côte d 'Ivoire, Cameroon, Gabon, Burkina Faso, Senegal, Mali, Zambia, Kenya and Tanzania). The complementarity is obvious," Mahdi Ben Hamden, Director of Alios Finance operations, told Jeune Afrique.
Tunisia is one of the most advanced countries in terms of leasing, with about 15 per cent of investments financed through this method.
But in sub-Saharan markets, where only two per cent of SME investments are financed by leasing, the development potential is important, according to Riadh Naouar, leasing specialist at the IFC.
With leasing, an entity makes assets immediately available to a company. In return the company pays rent. Leasing may include a purchase option at the end of the contract.
It facilitates access to credit for SMEs, who are struggling to provide the guarantees required to obtain a loan, often due to a lack of credit history. With leasing, the property or material itself becomes a guarantee.