Ouagadougou, Burkina Faso, October 18, 2010—IFC, a member of the World
Bank Group, in partnership with Burkina Faso’s Ministry of Finance, today
announced the launch of the country’s first leasing program. The program
is expected to train about 700 individuals on how they may secure or offer
the means to lease equipment and substantially grow the country’s leasing
In African countries, high interest rates and prohibitive collateral requirements
prevent most micro, small and medium enterprises from securing the necessary
credit to acquire expensive machinery, equipment, or vehicles. Traditional
banking and commercial credit are often only available to the top end of
Burkina Faso’s Minister of Finance, Lucien Marie Noel Bembamba said, “Faced
with this situation, financial products such as leasing can play an important
role in responding to the needs of small business in both the formal and
informal sectors. IFC's Africa Leasing Facility which plans to train more
than 500 small businesses in addition to 200 key industry players will
give them the opportunity to better understand leasing and get the most
out of it.”
Over the next three years, IFC Advisory Services’ Africa Leasing Facility
will work with the government of Burkina Faso to raise awareness of leasing
as a tool for small business and economic development. Trainings
will range from instruction on how local financial institutions may offer
leases to business plan creation for small businesses to apply for a lease.
Burkina Faso’s current leasing market is 1.5 billion West African CFA
francs. The program further aims to increase this volume to 8 billion by
2012 and 30 billion by 2018.
“Leasing delivers strong developmental impact and is particularly useful
as a financial instrument for small businesses in Africa which often lack
the credit history or sufficient collateral to access traditional forms
of financing,” said Mary-Jean Moyo, IFC Country Manager for Benin, Burkina
Faso, Ghana, Guinea, Niger and Togo. “Leasing also reduces the initial
capital requirements for acquiring equipment and is therefore an innovative
way to have a long-term positive impact on small business development in
The leasing program is a central tenet of IFC’s global initiative to promote
private sector development by facilitating alternative sources of financing
to small businesses.
After having met considerable success in Ghana, Madagascar and Tanzania,
IFC Advisory Services Africa Leasing Facility has been extended to 14 countries
in Sub Saharan Africa. It is funded through IFC’s Private Enterprise Partnership
for Africa (PEP Africa) in partnership with the African Development Bank,
Denmark, Ireland, Japan, Luxemburg, The Netherlands, Norway and Switzerland.
For more information on the facility, visit www.ifc.org/africaleasing.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.