Leasing Opportunities For Private Sector Funding

By Edmund Mingle
Friday, 27 February 2009

The Vice President, John Dramani Mahama, opened the maiden Ghana Leasing Forum in Accra yesterday and emphasised the need for Ghana to explore viable sources of funding for the private sector.
He said in view of the fact that the global financial crisis was already having an impact on access to credit in developed countries, “we too must respond by exploring viable alternatives that provide a lifeline of credit to our private sector”.
The forum, organised by the Ghana Association of Leasing Companies, Ghana Investment Promotion Centre and the International Financing Corporation, aimed at discussing strategies for enhancing the leasing industry and mechanisms to support the private sector.
It had the theme, “Access to finance: leasing opportunities and private sector development,” and was attended by operators in the leasing industry, managers of private sector businesses and business support institutions.
Leasing, among other things, enables businesses to have access to equipment for their operations thereby lessening the burden of businesses to have to look for funds to purchase the equipment, some of which they would use for a short period.
Vice President Mahama observed the importance of the leasing industry, and stressed the need for the industry to be promoted to enable it to effectively support the financing of the private sector.
He said that leasing provide alternative and appropriate financing mechanisms for businesses in the country, adding that local entrepreneurs could explore it to boost their capital and efficiency to invest in key areas of the economy.
He lauded the theme for the two day forum, and said it was in tandem with the government’s objective of attracting and retaining investment in the country.
“This maiden leasing forum should encourage all of you to discuss policy issues, benefits, challenges and opportunities associated with leasing as an alternative source of asset finance,” he told the forum.
He said the government would welcome contributions and proposals from banking and non-banking institutions, business regulatory bodies, investors and development partners on how the government could support and enhance the effective use of leasing to strengthen the competitiveness of local industries.
Robert Ahomka-Lindsey, Chief Executive Officer of the Ghana Investment Promotion Centre, in his welcome address, said the leasing industry provides excellent financing opportunities for the private sector, explaining that using leasing to purchase capital goods would help to improve productivity.