Ifc Survey Report in Ghana

IFC Survey Reports Expansion of gold coasts Leasing Market WEBWIRE Thursday, August 30, 2007 IFC, a member of the World Bank Group, today released the findings of its second annual eyeshot of Ghanas leasing market. The results show that the number of new leases issued in the country grew from 311 in 2005 to 536 at the end of 2006 an increase of 72 percent. The total lease portfolio delineate by gross lease receivables by the sector also increased by over 73 percent from $29. trillion in 2005 to $51. 3 million in 2006. The report notes a significant increase in the number of leasing providers, from seven in 2005 to 12 in 2007, with many banking institutions entering the sector. The Leasing in Ghana 2007 report represents the most comprehensive survey of Ghanas leasing market to date. It highlights major developments in the leasing industry in 2006 and makes recommendations for further improvements in the policy, regulatory, and tax environments that influence the sector.The repor t was compiled by the SECO IFC Leasing Program, a project that seeks to enhance the role of leasing as an alternative financing mechanism for businesses in Ghana. Launching the report, Taba Cookey, SECO IFC Leasing Program Manager, said, IFC is committed to documentation efforts that deepen Ghanas financial sector and expand bother to finance for the private sector. The 2007 survey provides strong evidence that the leasing sector is playing an more and more important role in financing the needs of private businesses in Ghana. Philippe Sas, Economic Advisor at SECO, said, Leasing is important, because it benefits mostly small and medium enterprises that generally cannot access financing from banking institutions. It makes it easier for these businesses to acquire capital equipment even when they lack the credit history or sufficient collateral to access traditional forms of financing. Speaking at the launch, Dela Selormey, brain of Banking Supervision at the Bank of Ghana, comme nded the development of the leasing sector and outlined various efforts by the bank to support further growth of the financial sector.Worldwide, leasing has demonstrated the index to increase investment in capital equipment. Leasing plays an important role in economic development. For example, it is reported that every 8 to 9 percent growth in leasing activities leads to a corresponding 1 percent average growth in a countrys GDP. In developed countries, leasing is used to finance intimately one-third of private investments.