I previously have addressed the rule of law and its importance as a critical component to the growth of any leasing industry. One of the examples that I used was an article, reported by Ghana News Today, about an African politician who entered into, and then quickly defaulted on, a lease with Ghana Leasing. As a result of this post, I have exchanged thoughts with Ernest Mintah, the CEO of Ghana Leasing. I asked Mr. Mintah to tell me a little about the Ghanaian leasing industry. I am sharing his comments here, for those of you that may be interested in knowing more about developing leasing industries or, perhaps, doing business in this part of the world. His story also highlights the important role that development agencies such as the International Finance Corporation play in establishing viable leasing industries throughout the world.
According to Mr. Mintah:
“The leasing industry in Ghana is made up of five companies of which four are independent and two are subsidiaries of banks. The independent leasing companies are Ghana Leasing Company Limited, General Leasing and Finance Company Limited, and Leasafric Ghana Limited. Ecobank Leasing Company Limited and Merban Finance and Leasing Company are subsidiaries of Ecobank Ghana Limited and Merchant Bank Ghana Limited respectively.
Ghana Leasing Company was the first of its kind created by the International Finance Corporation (IFC), Commonwealth Development Corporation (CDC) and Deutsche Investments und Entwicklungsgesellschaft mbh (DEG)as well as local financial institutions. The Ghana Finance Lease Law is considered to be one of the most innovative and progressive in Africa. Other African countries have emulated Ghana's standard.
Since the introduction of leasing in Ghana in 1991, leasing has grown steadily and is now considered as an alternative to bank loan financing for equipment purchases. However funding continues to constrain the potential growth of the leasing industry. Currently Ghana Leasing Company is looking for international partners to invest by way of Preference Shares or term loans to underwrite leases.”
If you would like additional information regarding Ghana Leasing Company or the leasing industry in Ghana, you should feel free to contact Mr. Ernest Mintah at ceo@ghanaleasing.com.
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