Sub-Saharan Africa

In the majority of 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, therefore, often only available to the top end of the market.

Leasing is particularly useful as a financial instrument for small businesses in Africa because these businesses often lack the credit history or sufficient collateral to access traditional forms of financing. Leasing also reduces the initial capital requirements for acquiring equipment.