businessincameroon.com

Experts, such as the Cameroonian Association of leasing (CAMLEASE) believe that leasing is one of the financing mechanisms by which Cameroon could reach a high growth rate, especially when authorities aspire to make Cameroon an emerging country over the next twenty-five years. Adopted a few weeks ago in Parliament, the law on leasing is since mid-March at the center of an intensive popularization campaign. This is an initiative jointly led by the Cameroonian government and the International Finance Corporation (IFC). "It's about a better knowledge of this financial instrument," says the Ministry of Finance.
The SME, which generally have difficulty to access traditional bank loans, have through leasing a way to finance their activities.
Contrary to conventional credit, leasing is a financing tool in the medium term with a minimum average of three years of credit and it is available from traditional banks as well as from leasing companies, independent from the microfinance institutions. Explaining the reasons which led the IFC to join in promoting leasing in Cameroon, Henry Rabarijohn, the resident representative of the financial institution belonging to the World Bank, said that "the approval of the law provides important means through training and investment promotion. This represents an instrument through which financial institutions are able to finance the acquisition of a wide variety of properties by offering products, services and innovative delivery methods."

Expected growth
For the Minister of Finance, Essimi Menyé, through this act "the leasing companies are able to access the equipment they need. It is for traders, including banks and institutions that already operate, such as leasing companies, to appropriate. We want to reactivate its operation so that everyone is informed and aware. Otherwise, you can benefit from the expertise of a financial advisor who knows the law. This law is also an opportunity for young people, who can exploit the law on leasing and create their own businesses." The ownership of the lease could help to reduce imports in a number of activities that would be an advantage for the country, which would benefit not only in terms of jobs creation and tax revenue, but also in terms of positioning local products labeled "made in Cameroon." The lease could also contribute to reducing the trade deficit, except oil, of Cameroon, which currently stands at 710 billion FCFA.
Cameroon, whose leasing market is currently estimated at 50 billion FCFA, has a potential of 200 billion FCFA by CAMLEASE, while all the CEMAC (Economic and Monetary Community of Central Africa) has a potential for leasing estimated at 400 billion FCFA. The SME, which generally have difficulty to access traditional bank loans, have through leasing a way to finance their activities. In a country like Cameroon, where SME represent over 80% of the economy, the ownership of the lease could bring more dynamism.
During the 13th General Assembly of the African Association of leasing in May 2010 in Yaoundé, the participants unanimously agreed that the lease is, in general, little practiced in sub-Saharan Africa, while countries like Morocco, Tunisia and Mauritius are still very advanced in the use of this financial product.
Achille Mbog Pibasso, Douala