Ethiopia Grants First Ever Foreign Lease Finance Company

Addis Ababa ENA August 9/2019 The National Bank of Ethiopia (NBE) has granted a license on Thursday to Ethio Lease, making it the first foreign-owned entity to receive a financial services license in the country.

Ethio Lease, a unit of New York-based Africa Asset Finance Company Inc., was licensed with the initial capital of 400 million birr would purchase equipment from agricultural machinery to medical equipments and drilling rigs, and receive payment in local currency Birr, it was indicated.

Speaking at the launching program at Sheraton Addis, Dr. Yinager Dessie, Governor of NBE said Ethio Lease as the first company to provide equipment leasing services, the company advance the effort of economic development agenda.

According to Yinager, "Being the first company to provide equipment leasing services, Ethio Lease promises to be a game changer in Ethiopia.  We believe this venture has a huge potential to boost the economy, while providing significant finance gains for the country."

Along with addressing easy access to needed equipments, Ethio Lease is anticipated to create local jobs and increase productivity in Ethiopia, he indicated.

On his part Girma Wake , Board Chairman of Ethio Lease said the company will have a transformative impact on Ethiopia through leasing high quality equipments for various sectors.

"We believe that Ethio Lease will allow companies to fee up their liquidity and generate revenue without having to heavily invest in equipment first. A leasing agreement would also allow companies to pay for the equipment as it generates revenues from them," Girma said who was also former CEO of Ethiopian Airlines.

The leasing concept was introduced in Ethiopia to address equipment and forex shortages and provide easy access to needed equipment, thereby creating local jobs and increasing efficiency.