Dar es Salaam, Tanzania, December 18, 2008
—IFC, a member of the World Bank Group, announced today that its leasing program in Tanzania has helped increase the volume of leasing in the country approximately fivefold over the last three and a half years, laying the foundation for a sustainable leasing sector and helping boost Tanzania’s economic output.
According to an IFC estimate, the outstanding leasing portfolio in Tanzania as of December was roughly $150 million, compared with $32.5 million when the program started operating in May 2005. At least four new lease providers have also started operations since the program’s launch and four more may do so in 2009.
The program is implemented by IFC, with funding from both IFC and Switzerland’s State Secretariat for Economic Affairs, or SECO. It will be completed at the end of December.
“Leasing is an important tool for small and medium enterprises with limited ability to obtain term financing from banks,” said Mary-Jean Ndlovu, Deputy General Manager of IFC’s Private Enterprise Partnership for Africa. “The SECO-IFC Leasing Program has made a significant contribution to increasing financial leasing in Tanzania.”
Over its period of operations, the program has:
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Advised Tanzania’s government and central bank on building a favorable legislative, regulatory, and tax environment to develop financial leasing, leading to the enactment of a new financial leasing law in April
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Provided business development support to 45 institutions in order to support the launch or expansion of leasing services
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Conducted targeted public information and awareness campaigns on leasing issues which reached over 2000 people
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Supported the establishment of a Tanzania Leasing Association
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Supported initiatives to increase the lease of small equipments to micro enterprises
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Disseminated technical publications and materials to over 3,000 people
IFC will continue to support leasing in Tanzania by providing services such as technical advice and training to the Tanzania Leasing Association.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
