ETHIOPIA – IFC, a member of the World Bank Group, and the National Bank of Ethiopia, hosted Ethiopia’s first National Leasing Forum to strengthen Ethiopia’s leasing industry and help it reach its estimated US$1 billion potential for supporting thousands of smaller businesses across the country.
The forum gathered stakeholders from the public and private sectors to discuss opportunities to support Ethiopia’s micro, small, and medium-sized businesses with leasing finance, a financial solution under which businesses with limited or even no collateral can more easily acquire the vehicles, equipment, or other items, they need to grow.
“We have been working diligently to create an attractive environment to attract investment and new players into the leasing sector so more businesses can access finance through leasing.”
“IFC has partnered with Ethiopia to strengthen the country’s leasing infrastructure so more firms can access lease financing and grow,” IFC Country Manager for Ethiopia, Djibouti, Eritrea, Sudan and South Sudan, Cheick-Oumar Sylla, said.
Leasing plays a vital role diversifying financial sector product offerings and increasing access to finance.
Leasing finance is accessible for businesses run by both men and women. However, the value of Ethiopia’s current leasing market is only a fraction of its estimated potential.
The more support financial institutions are provided to offer leasing – legislatively, technically and financially – the greater the access to finance options available to small and medium-sized businesses.
IFC has recently helped Ethiopia’s government create a favorable regulatory environment for leasing and has helped the Development Bank of Ethiopia and the five regional finance companies based in Addis, Debub, Kaza, Oromia, and Waliya launch leasing operations.