SECO-IFC TANZANIA LEASING PROGRAM

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FINANCIAL LEASING NEWSLETTER
OCTOBER 2006 – MARCH, 2007 ISSUE # 09 (DEC., 2007 - APRIL, 2008 )

INSIDE THIS
NEWS LETTER TANZANIAN PARLIAMENT PASSES A
1. Parliament of Tanzania
Passes a Bill for the Financial BILL FOR THE FINANCIAL LEASING
ACT , 2007 ON APRIL 2008
Leasing Act, 2007 on11th
April 2008
2. Leasing Presentation to
the Cabinet Of Ministers
(January 22nd 2008)
3. Presentation to the Finance
And Economic Affairs
Parliament Committees
(January 24th “08)
4. Leasing Presentation to the
National Assembly (February
’08)
5. Business Development
Mission for Banks and
Leasing Companies
6. Investment Scoping Mission
7. Leasing News From The
Market
• Scania Finance South Africa
(PTY) Ltd launches Leasing
Operations in Tanzania
• Imperial Fleet Services -
Tanzania initiates Leasing
Operations in Tanzania
• Tanzania Investment Bank
(TIB) sets up a leasing
department With an objective to stimulate endorsed the Bill for the financial
• University of Dar Es Salaam
Finalizes Preparations for capital investment and access to leasing Act, 2007 on April 11th 2008,
Leasing Syllabuses finance, and thereby meet the in Dodoma.
• SERO Lease Finance Limited
Founder elected among demands of local and international The bill was presented to the National
the best business women in investors, the Tanzanian Parliament Assembly by the Minister for Finance
Africa
in November 2007 and passed by
8. Activities for the period of the National Assembly on April 11th
July to December 2008 READERS WELCOME NOTE 2008 during its 3rd sitting. The date
9.
• Zonal training Sessions for Dear Readers, that new law will come into force will
SMEs
• Technical Support For
be announced in the Government
You are cordially invited to the
Leasing Operators eighth edition of the SECO IFC Gazette.
• Training for SACCOS to start Tanzania Leasing Program, Electronic
microleasing activities
IFC expects that the bill will be
newsletter whose objective is to
• Launch of 2007 Leasing update you on leasing issues, and a step forward to enabling Small
Market Study
• 2nd Leasing Investment
activities in Tanzania. and Medium Entrepreneurs (SMEs)
Conference We welcome your comments and to access finance for acquisition
• Capacity Building for suggestions related to the issues of business equipment through
Stakeholders raised in this newsletter.
• Public Awareness Campaign periodical rental payments.
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FINANCIAL LEASING NEWSLETTER
OCTOBER 2006 – MARCH, 2007

LEASING PRESENTATION TO THE The International Finance Corporation (IFC), an

CABINET OF MINISTERS (JANUARY 22ND arm of the World Bank Group with the mandate
2008) of developing and sustaining the private sector in
developing countries, defines leasing as a three
On January 22nd 2008, The program team – party transaction in which a lessor pledges to
made a high level technical presentation to the acquire an asset selected by a lessee from a
Cabinet of Ministers regarding the, benefits of supplier and to let the lessee use and possess
leasing to the Tanzanian economy and the key the asset acquired in exchange for payment to
features of IFC’s proposals for a financial leasing the lessor.
law.
At that session, senior government officials from
the central bank of Tanzania, Tanzania Revenue
Authority and the ministry for finance were
invited. A total of 200 participants attended the
event which was conducted in Dar Es Salaam,
at the Karimjee conference Hall.

The session took place after the first reading of

the financial leasing bill was done in Dodoma, at
the National Assembly, in November 2007.

LEASING PRESENTATION TO THE

FINANCE AND ECONOMIC AFFAIRS
PARLIAMENTARY COMMITTEE ON
JANUARY 24TH “08) At that session, 35 Members of Parliament
(MPs) and 30 government officials from the
The Team made a technical presentationto the Bank of Tanzania and ministry for finance were
Parliamentary Committee responsible for finance in attendance and asked questions and made
and economic affairs regarding what leasing is contributions on how best the leasing sector
and its benefits to the Tanzanian economy could be developed and sustained for the
benefit of Tanzanians country -wide.
At that gathering, the parliamentary committee
was interested in understanding what the
practical experiences in leasing in the country LEASING PRESENTATION TO THE
have been. The program team therefore NATIONAL ASSEMBLY (FEBRUARY ’08)
collaborated with SERO Lease and Finance Ltd.
(SELFINA) and Stanbic Bank Tanzania Limited to A one day seminar was conducted in Dodoma
share practical experiences in lrunning leasing early February this year for the whole Assembly
operations at a seminar conducted for the whole of Members of Parliament which attracted 390
Parliament of Tanzania, in Dodoma, on February participants, 350 being MPs. The rest of the
2nd 2008.
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FINANCIAL LEASING NEWSLETTER Pg 
OCTOBER 2006 – MARCH, 2007

participants were government officials from the The intention of the business development support
ministry for Justice and Constitutional Affairs, is to build capacity amongst leasing operators
ministry for finance and Bank of Tanzania (BOT). in Tanzania so that they gain operational
knowledge on how to run and expand leasing
The seminar focused on the benefits of financial operations ,
leasing as an alternative means of enabling
Small and Medium Enterprises (SMEs) to acquire The Program believes that financial leasing is a
business equipment. solution for SMEs to be able to access finance
and thereby helping them to reduce poverty
Through financial leasing, SMEs can own business from .
assets without spending a lot of money or tying
up scarce working capital as the SME is required LEASING NEWS FROM THE MARKET
to pay for the equipment in instalments on a
periodic basis. • Scania Finance South Africa (PTY) Ltd
Launches Leasing Operations in Tanzania
The Program thinks that, leasing will benefit a vast
majority of SMEs who for a long time have lacked Scania Finance South Africa (pty) Ltd, early
access to finance due to lack of collateral this year started providing leasing services
and other conditions imposed by commercial in Tanzania. The company is located within
banks\. the Scania Tanzania Limited premises with a
concentration on funding of Scania product
CONTINOUS BUSINESS DEVELOPMENT purchases only.
SUPPORT FOR COMMERCIAL BANKS
AND LEASING COMPANIES

As part of its initiative to develop a sustainable

leasing sector in Tanzania, the SECO IFC Leasing
Program Tanzania, in collaboration with two
Spanish leasing experts, conducted sessions with
five (5) commercial banks and three independent
leasing companies towards the end of April 2008
in order to assessthe banks/companies needs for
launching leasing operations.

Having identified the needs of these entities,

the consultants came back in Tanzania in June Scania Finance South Africa (PTY) Ltd is
to conduct specialized training of commercial confident that the leasing market in Tanzania
banks and leasing companies as had been is rapidly growing and that it will contribute
identified by the needs assessment.. to improving people’s living standards, in
Tanzania and its neighboring countries as it
is also dealing with cross – border leasing.
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FINANCIAL LEASING NEWSLETTER
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players in developing the leasing industry in

• Imperial Fleet Services -Tanzania initiates the country.
Leasing Operations in Tanzania
The program is optimistic about the future of
During this period, Imperial Fleet services, leasing in Tanzania and expects to see other
another international private leasing companies launch the services in the near
company with offices in Tanzania and South future..
Africa started providing financial leasing
services in the country. • University of Dar Es Salaam Finalizes
Preparations for Leasing Syllabuses
• Tanzania Investment Bank (TIB) to Launch
Leasing Operations soon The University of Dar Es Salaam (UDSM)
has partnered with the IFC in preparing
The Tanzania Investment Bank (TIB) will soon leasing syllabuses that are to be used in
launch leasing operations in Tanzania. training university students of the Faculty of
Commerce at degree level next year.
Being a state owned bank, it is expected that
TIB will reach a good range of Tanzanians The initiative is aimed at making sure that
from different parts of the country. while the leasing sector is developing, local
leasing experts are also being produced in
The Bank has a zonal branch based in Arusha, order to sustain the sector.
in addition to the Headquarters in Dar Es In addition to that, at this stage, the UDSM
Salaam. is ready to provide short courses on finance
lease for the market depending on market
The Program is very pleased to see the rising needs. Training sessions can be tailor – made
appetite among private and public sector to suit a clients’ requirements.

• SERO Lease Finance Limited Founder elected

among seven best business women in
Africa

Dr. Victoria Kisyombe, the founder of a

company known as SERO Lease Finance
Limited based in Dar Es Salaam, Tanzania,
was among seven (7) best business women
in Africa who featured in the “Doing Business
Women in Africa” Report this year.

Dr. Kisyombe was invited to Washington DC,

at the World Bank office Headquarters in April
2008 where she presented her company’s
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FINANCIAL LEASING NEWSLETTER
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profile which attracted most people. Dr. Commerce, Industry and Agriculture (TCCIA)
Kisyombe is among women entrepreneurs will conduct training sessions for selected
across Africa who has overcome legal and leasing stakeholders (SMEs) based in regions
regulatory obstacles to create new business other than Dar Es Salaam.
opportunities.
The aim of the sessions is to get Trainers of
Working with 10, 000 Tanzanian women who Trainers for leasing in the regions in order that
also support other 51, 000 Tanzanians through these trainers can train other stakeholders in
their families, Dr. Kisyombe’s success is an their respective areas. The Program believes
obvious one. that this will ensure that leasing is sustainable
.
“Doing Business Women in Africa” is the World • Technical Support For Leasing Operators
Bank Group Gender Action Plan, four year
initiative to promote women’s economic The Team expects to continue its practical
empowerment and gender equality as smart advisory support for operators whereby
economics, according to the Doing Business Leasing Operators will gain practical
Report, 2008. operational knowledge from the IFC and its
international Consultants.
Doing Business is a series of annual reports
investigating the regulations that enhance The support is organized in terms of workshops
business activities and those that constrain it. for operators or resident advisors placed with
For more information, please visit the website: participating banks and companies. The
http://www.doingbusiness.org. support shall be offered on a cost sharing
basis between the leasing company or
Investment Scoping Mission bank and the SECO IFC Leasing Program
Tanzania.
Mr. Ary Naim, a senior financial sector specialist in
leasing from the IFC headquarters in Washington • Training of SACCOS to Become Leasing
D.C. was in Tanzania between June 19th & 20th Companies
to conduct a preliminary mission in order to
understand and assess the investment needs of The Program will hold training sessions on
leasing companies and banks. During his visit, Ary “How to conduct Leasing Operations” for
met 6 different prospective leasing entities. a few SACCOS to enable them provide
microleasing products to their members. The
ACTIVITIES FOR THE PERIOD OF JULY TO training sessions are planned to begin before
DECEMBER 2008 end of this year.

• Zonal Leasing Training Sessions • Launch of Leasing Market Study for 2007

The Program, in collaboration with the Bank of The Program expects to launch its annual
Tanzania (BOT) and the Tanzania Chamber of leasing market study for the year 2007. whose
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FINANCIAL LEASING NEWSLETTER
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purpose is to track development of the

leasing sector in the country from the period ABOUT THE PROJECT AND DONORS
of the last study made to December 2006.

Ever since, the leasing program was launched

by IFC in 2005, the leasing sector has
registered growth from $ 35.2 million to $ 80
million

• Public Awareness Campaign

The Program intends to conduct an intensive

public education campaign from July
this year including exclusive sessions with
members of media houses, SMEs, professional
and business associations and government
departments to mention a few.
The public awareness will also involve training
The Project was officially launched on the 24th May,
on the new Financial leasing law. 2005. The program is being implemented by IFC Advisory
Services, made possible with the generous support of
the State Secretariat for Economic Affairs SECO (www.
seco-cooperation.ch). Each year, Switzerland spends
• 2nd Leasing Investment Conference
approximately $ 1.3 billion on development aid in
developing countries.
The program intends to hold its 2nd Investment
conference that will assembly local and
international leasing investors to promote ABOUT IFC
investment and stimulate growth of the
leasing market in Tanzania. It is expected that
the conference will take place in September
or October this year

The International Finance Corporation, the private sector

arm of the World Bank Group, is the largest multilateral
 SECO-IFC TANZANIA LEASING PROGRAM
FINANCIAL LEASING NEWSLETTER Pg 
OCTOBER 2006 – MARCH, 2007

provider of financing for private enterprise in developing Davorka Rzehak

countries. IFC finances private sector investments, mobilizes Pep Africa, Financial Markets Operations Officer
capital in international financial markets, facilitates
trade, helps clients improve social and environmental Fax: + 27 (11) 731-3202
Sustainability, and provides technical assistance and [email protected]
advice to businesses and governments. From its founding
in 1956 through FY06, IFC has committed more than $56
billion of its own funds for private sector investments in the
developing world and mobilized an additional $25 billion Moyo Violet Ndonde
in syndications for 3,531 companies in 140 developing Program Manager
countries. With the support of funding from donors, it has [email protected]
also provided more than $1 billion in technical assistance
and advisory services. For more information, visit www.ifc.
org.
Riadh Naouar
Pep Africa, Leasing Expert
A POLITE REMINDER ON OUR PROGRAM [email protected]
NAME CHANGE
The Tanzania Leasing Project has been popularly known as Elizabeth Massanja
“TANZALEP” or by its full aforementioned name. We wish
PR / Program Assistant
to inform our readers that IFC has recently undertaken
a branding initiative, and from now on the Program [email protected]
will be called the SECO IFC Leasing Program Tanzania,
implemented by IFC Advisory Services.

CONTACTS
IFC Advisory Services
World Bank Country Office
50 Mirambo Street,
Garden Avenue, 4th Floor
P. O. Box 2054
Dar es Salaam, Tanzania
Tel: + 255 22 2163200 (Ext.3256) & 2163256
Fax: 255 22 2163328 & 2163295

Rachel Freeman
Deputy General Manager - PEP Africa
International Finance Corporation
Tel: +27 11 731 3037
Fax: + 27 (11) 731-3202
[email protected]