Ethio Lease, United States base capital goods leasing company, has got a license from the National Bank of Ethiopia (NBE) to rent machinery to small and micro-enterprises.
This announced on Thursday in Addis Ababa at the Sheraton Addis Hotel. "The company buys the machinery using foreign currency and lease the materials using local current (Ethiopian birr), said the chairman of Ethio Lease, Girum Tsegaye.
Ethio Lease company is the first licensed foreign company in Ethiopia, according to the Governor of NBE, Yinager Desse (PhD). He indicated that the new company will play a major role in the economy of Ethiopia and foreign currency saving.
Ethio Lease rents quality capital goods for Ethiopians and contributes to the economy of the country, according to Ethio Lease board chairman, Germa Wako. Ethio Lease plans to work in agriculture, health, communication, hospitality, and other manufacturing fields.
The company has nine shareholders and seven board members, it invests 400 million birr (around $13.8).
Capital goods leasing is common in the United States with 75 percent coverage, while in Africa such kind of business represents only 5 percent, according to Vice Chairman of Ethiopia Lease, Mr.France Vanshak.
Ethio Lease is a subsidiary (a sister company of the United States-based African Asset Financial Company.