The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently signed a cooperation agreement with the Chadian Ministry of Planning and International Cooperation, the governmental body charged with organizing and implementing development projects in the country, to support the development of leasing options for small and medium-sized enterprises (SMEs) in Chad. As a result of this agreement, IFC plans to lay the groundwork for leasing options for enterprises in the agribusiness, mining and power sectors.
According to a statement attributed to Mrs Mariam Mahamat Nour, the minister of planning and international cooperation, “leasing is particularly useful as a financial instrument for small and medium enterprises in Chad because they often lack the credit history or sufficient collateral to access traditional forms of financing.” Henri E Rabarijohn, IFC’s Country Manager for Chad, agreed, stating that “countries looking to rebuild and diversify their economies, such as Chad, stand to benefit greatly when equipment is more accessible to its small business owners” [1].
IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
By Benjamin Krupp, Research Associate
About International Finance Corporation
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
Sources and Additional Resources
[1] International Finance Corporation: IFC and Government of Chad Introduce Leasing to Help Small-Scale Business Sector Expand
MicroCapital, June 17, 2014: International Finance Corporation (IFC), MasterCard Foundation, Tigo to Expand Mobile Financial Services in Ghana
MicroCapital, June 16, 2014: International Finance Corporation (IFC) Loans $18m to Microfinance Institution Financiera Confianza of Peru to Support Low-Income Entrepreneurs
MicroCapital, April 14, 2013: Tigo Launches Mobile Banking Service in Chad to Compete with Airtel
MicroCapital Universe Profile: International Finance Corporation (IFC)
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