Rwanda’s leasing industry is expected to grow from $30 million (Rwf17.5 billion) in 2010 to $60 million (Rwf35.1 billion) next year, the President of Rwanda Leasing Association, Sanjeev Anand said during the closing ceremony of the IFC Rwanda Leasing programme.
The programme which was launched in 2007 to help Rwanda’s leasing industry to grow and increase the use of leasing as an alternative financing mechanism among small businesses across the country ended its mandate yesterday.
Anand said that when the programme began in 2006 it had FINA Bank and Commercial Bank of Rwanda as two players but the association is planning to bring more players in the sector to meet their target of $60 million leasing transactions.
“We are thinking of more micro-finance institutions, original manufacturers like Toyota and bring in more banks to be members of the associations so as to beat our target by this time (June) next year,” Anand said.
During the three years, IFC, Rwanda’s development leasing programme was carried out in partnership with the government of Rwanda, the Netherlands, Denmark, Luxembourg and the African Development Bank.
The programme’s work will now be taken over by the Rwanda Leasing Association.
Deputy Governor of the Central Bank of Rwanda, Clever Gatete heightened leasing contribution over the country’s agenda and he said that leasing has helped in the benefits from Capital/Bond market.
“Leasing has helped to finance mainly the SMEs which have proven to be the engine of economic development in emerging market,” Gatete said.
He also added that increased leasing will contribute to the expanding access to credit and financial inclusion as the country is trying to move from 21 percent in 2008 to 30 percent by 2012.
Gatete also added that other sectors apart from agriculture and health, are ready to benefit from the programme and that the financing vehicle will contribute much to the country’s economic development.
“The government has endorsed it and a draft law will soon be passed by parliament to provide an enabling environment,” Gatete said.
IFC Principal Investment Officer, Aida Kimemia said that IFC Development Leasing Programme and our partners have helped build Rwanda’s leasing industry and supported the growth of thousands of businesses.
“The programme leaves a strong leasing sector that will continue to flourish and help Rwandan businesses acquire the equipments they need to grow and succeed,” Kimemia said.
IFC, a member of the World Bank Group, creates opportunities for people to escape poverty and improve their lives.
They foster sustainable economic growth in developing countries by supporting private sector development, mobilising capital for private enterprise.