Press Releases

IFC Investment in Madagascar’s BNI-Leasing Will Improve Access to Finance for Small Businesses

In Antananarivo
Henri Rabarijohn        

Phone: + (26120) 225 6000


In Johannesburg

Houtan Bassiri

Phone: + (2711) 731 3179


Antananarivo, Madagascar, March  8, 2007—IFC, the private sector arm of the World Bank Group, today announced a $100,000 equity investment in BNI-Leasing, a private sector leasing company in Madagascar and a subsidiary of BNI-Madagascar, an existing IFC client.  

BNI-Madagascar will support BNI-Leasing with 80 percent equity and an initial debt funding, and IFC will acquire the remaining 20 percent equity stake in the company. The transaction will broaden IFC’s relationship with BNI- Madagascar. “The strong working relationship between BNI-Madagascar and IFC will help ensure a successful venture with high impact to help businesses grow across the country’s regions and sectors,” said Célestin Randriamampionana, general manager at BNI-Leasing.

Increasingly, leasing has become an important tool for small and medium enterprises with limited ability to obtain term financing from banks. The leasing sector is expected to grow rapidly in the coming years. A recent Monitor Group report estimated that leasing would more than quadruple to $16.5 million by 2010, from $3.6 million in 2006.

The BNI-Leasing project falls under the International Development Association-IFC micro, small, and medium enterprise project for Madagascar, which will provide up to a 50 percent  guarantee to a portfolio of new loans to small and medium enterprises in the three “growth poles regions” of Nosy Be, Fort Dauphin, and Antananarivo/Antsirabe. Under the project, IFC has been advising the Malagasy government on establishing the legal and regulatory framework for the leasing industry.

“IFC is committed to helping create opportunities for smaller businesses that contribute to economic growth and job creation in Madagascar,” said IFC director for Sub-Saharan Africa, Thierry Tanoh. “Entrepreneurs need better access to finance, equipment, and technology, and a business-friendly environment to grow their businesses and thrive. IFC is showing its commitment and leadership in promoting innovation through domestic financial institutions like BNI.”

About IFC

IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries.  IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit

About IDA

The International Development Association is the part of the World Bank that provides interest-free loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.