Leasing will address challenges faced by Small and Medium Enterprises (SMEs) when accessing funding, James Musoni, the Minister of Finance and Economic Planning said. Musoni said that Rwanda considers the private sector as the engine for its growth even if access to finance continued to be a challenge.

Speaking at the opening of the 12th African Leasing Association (Afrolease) Convention at the Serena Hotel in Kigali on Monday Musoni said, "Leasing as the alternative financing mechanism will answer most of the challenges that this sector faces especially the SME.”

The international forum was called to educate Rwandans and neighbouring countries, the private sector, law makers and other stakeholders on leasing. It was noted that SMEs in Rwanda lack collateral required by banks, therefore most of them do not access medium and long term financing.

Musoni also said that leasing supports Rwanda’s objective of being a technology driven society enshrined in Vision 2020.

Developing a strong ICT, agriculture, social and infrastructure sectors have been identifies as drivers of economy growth in Rwanda.

"It is therefore our belief that leasing can facilitate their growth because technology and equipment is very fundamental in their development.”

Musoni noted that there are still challenges for the 2 year leasing industry in Rwanda. He cited luck of a legal and regulatory framework, capacity constrains in both the public and private sectors as some of the constraints.

The Vice President of Afrolease East African, Moses Kibirige, said the association helps to develop viable national leasing industries in Africa, targeting 10 per cent lease penetration on the continent by 2020.

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