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Conakry, Guinea, June 16, 2014 –
IFC, a member of the World Bank Group, today announced it signed a cooperation agreement with the Central Bank of the Republic of Guinea to lay the foundation for leasing facilities to help small-scale entrepreneurs strengthen and expand their businesses.
Leasing is an innovative financing solution for small enterprises, which often lack the credit history or sufficient collateral required by most banks to finance the necessary equipment to heighten productivity.
Dr. Louncény Nabé, Governor of the BCRG, said, “The Central Bank welcomes the development of a leasing program and will champion the leasing program in Guinea. With the support of IFC, the Central Bank has drafted and enacted a leasing law, and leasing has already become a reality with one commercial bank offering leasing products to its clients.”
IFC’s Africa Leasing Facility assists in creating a legislative and regulatory environment favorable for leasing, provides capacity-building for leasing stakeholders, and mobilizes investment in the continent’s leasing industry.
Ibrahima Sory Soumah, IFC Country Representative for Guinea, said, “Leasing could play a catalytic role in the development and growth of the small- and medium-sized business sectors in Guinea, not least in the mining sector. The potential leasing market in Guinea is estimated at about $130 million, at least, and we have already seen interest in the market from the financial sector.”
Over the past five years, IFC’s Africa Leasing Facility has trained more than 10,000 small business owners through almost 250 training sessions, assisted in the passage of 16 legal, regulatory and tax laws regarding leasing, and mobilized investment in five leasing projects in Sub-Saharan Africa worth almost $27 million.
The ALF II program is supported by the Swiss State Secretariat for Economic Affairs, SECO. For more information on IFC’s Africa Leasing Facility, please visit:
www.ifc.org/africaleasing
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About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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