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IFC Officials Says Leasing Cardinal To SMEs Survival
By Ballah M. Kollie
MONROVIA, October 24 (LINA) – International Finance Corporation (IFC) Finance and Markets Communication Consultant for Africa has said leasing is a critical financing tool for Small and Medium Enterprises (SMEs).
IFC is a member of the World Bank Group that deals with lending through local banks.
Speaking at a day-long training of journalists on how to report on lease agreement and its importance to SMEs in Monrovia on Monday, Pauline Delay said the innovation will ensure that financial institutions with support from IFC will lease machineries and equipment SMEs.
Delay said one cardinal advantage of the lease program is that it will not require the presentation of collateral as it is in the case of lending and loans, and that lessees will also have the opportunity to buy the lease property upon the aspiration of the term of the lease agreement.
Delay revealed that agriculture, construction and mining equipment are things that will be leased to interested institutions and individuals in an effort to boost the capacity of SMEs.
The program is under the Africa Leasing Facilities (ALF) that is operational in several African countries, including Liberia, Guinea, Guinea Bissau, Mali, South Sudan, Sierra Leone, Niger and Chad, among others.
SMEs, she said, contribute to over 80 percent of job creation in numerous economic areas, and as such must be supported and enhanced by international and local financial institution by affording them access to finance easily.
The IFC official pointed out that the new program will also boost the economic strength of local finance markets and infrastructure development.
Meanwhile, the program is expected to be officially launched at a local hotel in Monrovia shortly.