LEASING, THE NEW FRONTIER IN EAST AFRICA’S ASSET FINANCE

DRC, is the Newest and 7th Member of the EAC and a major boost for the Trade Bloc

The Democratic Republic of Congo (DRC), on March 29th of 2022, became the seventh member of the East African Community (EAC). The bloc which already includes Kenya, Tanzania, Rwanda, Uganda, Burundi and South Sudan welcomed DRC’s entry, noting that it would go a long way in expanding intra-EAC and intra-African trade.

Natural resource-rich DRC has a large population of over 90 million, and the admission increased the total population in the EAC to over 275 million from 183 million – massively expanding the territory of the trading bloc to one of the largest in Africa.

Increased Purchasing Power

In international trade, numbers matter. EAC’s combined gross domestic product (GDP) is expected to rise to $250 Billion (Sh28.8 trillion). The addition of DRC’s economy to the EAC is a milestone that presents numerous opportunities for the people of the wider East Africa to take advantage of opportunities in trade, agriculture, manufacturing, technology, natural resources, education, and other fields of mutual interest.

RentCo Africa Establishes Presence in Kinshasa & Lubumbashi.

In a Trade Mission between Kenya and DRC at the end of 2021, RentCo Africa, an independent firm providing flexible asset financing solutions across Africa, through a comprehensive suite of customized lease financing solutions saw the immense opportunities in doing business in DRC. In a fact-finding mission to discover investment opportunities in the newest member of the EAC, RentCo identified clients who expressed interest in exploring leasing as a finance option. It is against this background that the asset leasing giant established physical presence in Kinshasa.

According to RentCo Africa’s CEO, Mr. Robert Nyasimi, “To ease the financial burden in the current business environment, our commitment has been unwavering towards accelerating sustainable business growth for clients across multiple sectors through flexible lease financing solutions.”

The company provides leasing solutions directly to large and medium-sized organizations through the development of vendor finance programs for all types of business assets in all sectors. RentCo Africa has embarked on two main projects in DRC this year.

The first of the leasing provider’s ventures in Kinshasa entails a fruitful collaboration with MINESU (Ministry for Higher Education Institutions and Universities) in the establishment of Solar Plants in Campuses to power administration blocks, various school faculties and street lighting to improve security within the learning institutions. This partnership also includes borehole water supply projects and digitalization of student registration within various learning institutions. RentCo has also been commissioned by SNEL, the national electricity Company in DRC in the supply and delivery of pre-paid electricity meters; a first in the country.

“Our combination of various multi-sector competencies, specialist leasing knowledge, track record and collaboration wcith our partners – enables us to offer organizations integrated asset finance and auxiliary solutions across the African continent and beyond.” he added calling on the DRC Government to collaborate with the private sector to enhance effectiveness of public service delivery in DRC.

RentCo has in its pipeline interest in investment in different projects ranging from energy, infrastructure, health and transport.

Leasing Holds the Key to Sustainable Business Growth & Career Opportunities in DRC

The global leasing industry has grown by 131% in the past nine years — a remarkable achievement. According to Global Leasing Markets Report 2022-2030, Asia Pacific was the largest region in the leasing market, accounting for 36.3% of the total in 2020/2021. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the leasing market will be Africa, and, Middle East where growth is estimated at CAGRs of 13.3% and 12.7% respectively.

 

Africa is vying for a spot at the global leasing stage. Leasing is a very flexible mode of holding assets. Not surprisingly, therefore, leasing is fast rising as a viable asset financing option in Africa; with successful multi-sectoral and infrastructural projects achieved through leasing within East Africa. The leasing market is segmented into automotive equipment leasing; consumer goods and general rental centers; machinery leasing and lessors of nonfinancial intangible assets.

RentCo’s leasing solutions enable businesses to rapidly acquire the assets they need to achieve their revenue goals, by leveraging lease financing instead of tying up the balance sheet or credit lines. In today’s uncertain financial climate, leasing of movable assets stands out as viable alternative, flexible and creative financing option enabling Governments and organizations alike, to acquire today’s assets or equipment, at today’s price, but paid with tomorrow’s revenues.

RentCo Africa strongly believes that the subsequent adoption of leasing in both the public and private sectors in DRC will provide a competitive edge around operations and business performance, elevating the economies of East Africa Community’s member nations to new heights.

For more information, please contact:

RentCo Africa Limited,

Tel: (+243) 858 478 048 | Email: info@rentcoafrica.com

15 -17 Ave. Colonel Ebeya, Jaguar Building, 3rd RCCM: CD/KNG/RCCM/20-B-02382 Level, Local 305, Gombe/Kinshasa

Visit www.rentcoafrica.com

RentCo Group

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