TANZANIA LEASING PROJECT (TANZALEP) FINANCIAL LEASING NEWSLETTER by t8929128

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									  TANZANIA LEASING PROJECT (TANZALEP)
FINANCIAL LEASING NEWSLETTER
                                ISSUE # 04                       (APRIL – JUNE 2006)




                                                                                 INSIDE THIS ISSUE:

                                                                      INSIDE THIS NEWS LETTER
                                                                      •   Readers’ Welcome Note
                                                                      •   Comments from Stakeholders on Draft
                                                                          Leasing Law and Tax Recommendations
                                                                      •   Government’s Commitment To Develop
                                                                          Leasing
                                                                      •   Leasing News From The Market
      READERS WELCOME NOTE                                                -   UNIDROIT Model Law on Leasing
                                                                          -   Support for Establishment of the
   Dear Readers,
                                                                              Tanzania Leasing Association (TALA)
   Welcome to this fourth edition of the International                    -   Capacity Building And Technical
Finance Corporation - Tanzania Leasing Project’s (IFC-
                                                                              Assistance
TANZALEP) quarterly electronic newsletter. The objective
of our newsletter is to update you on leasing issues, and             •   10th African leasing convention & Training
TANZALEP’s activities in Tanzania.                                    •   Media Training Session
   In the previous quarter, the Project submitted its draft
                                                                      •   Regal Exchange Training Session
for a leasing law as well as recommendations for leasing
taxation reform to Government. The Project subsequently               •   Tanzania Bankers Association (TBA)
held discussions with various government departments                      Newsletter Covers Leasing
and senior officials on TANZALEP’s proposed measures.
                                                                      •   TANZALEP Meets Ghanaian Leasing
The Project also provided support for establishment of a
Tanzania Leasing Association.                                             Companies
   From the period of July to September, 2006, TANZALEP               •   Launch of TANZALEP Website
will hold sensitization and capacity building sessions for
                                                                      •   July - September 2006 Activities
Members of Parliament and Government; will provide
business development services for interested stakeholders
                                                                      •   About The Project And Donors
in the private sector; and training for the judiciary, lawyers        •   Contacts
and accountants.
   Please read on for more news on our activities. We
welcome your comments and suggestions on issues raised
in this newsletter to help refine our activities.


                      TANZALEP TEAM
                                                                            development of leasing. The Minister for Finance, Hon. Zakia
           NEWS IN PICTURES
                                                                            Hamdani Meghji made special mention of finance leasing
                                                                            development to the National Assembly when presenting
                                                                            estimates of government revenue and expenditure for the
                                                                            fiscal year 2006 / 2007.


                                                                                The Minister stated that in its efforts to improve financial
                                                                            services countrywide, government priority will be accorded
                                                                            to lease finance development, among other financial services,
                                                                            and that a special committee comprised of members of the
                                                                            banking sector and government would be set up to advise on
                                                                            financial services development, including leasing finance and
                                                                            housing finance.


A cross section of participants of Afro Lease Convention listening to the       LEASING NEWS FROM THE MARKET
opening speech of the convention delivered by the representative to the     •   Support for Establishment of the Tanzania
Minister for Finance of Ghana during the 10th Afro lease Convention
and Training which was from June 5th to 9th 2006 in Accra, Ghana                Leasing Association (TALA)
                                                                                       TANZALEP held meetings with private companies
                                                                            that have a keen interest in leasing operations to discuss
                                                                            matters regarding establishment of a Tanzania Leasing
                                                                            Association. It is the intention of stakeholders that, once
                                                                            established, the Leasing Association will provide support for
                                                                            leasing development in Tanzania to complement TANZALEP’s
                                                                            efforts.
                                                                                       Under the partnership with private sector,
                                                                            TANZALEP is providing logistical and technical support for
                                                                            the establishment and smooth running of the Association.


                                                                            UNIDROIT RELEASES PRELIMINARY
                                                                            DRAFT MODEL LAW ON LEASING

A mixture of leasing practitioners and professionals interested in
leasing, paying attention to a “ hands - on” example on Accounting for
                                                                                UNIDROIT has released a preliminary draft model law
Leasing operations during a training session, held in Dar Es Salaam on      on leasing as established (prepared) by a Unidroit Advisory
April 19th to 21st 2006
                                                                            Board and authorized for transmission to Governments, for
COMMENTS RECEIVED FROM                                                      finalization, by the Unidroit Governing Council at its 85th
STAKEHOLDERS ON DRAFT LEASING                                               session, held in Rome from 8 to 10 May 2006. UNIDROIT
LAW AND LEASE TAXATION                                                      is currently working out the details of the intergovernmental
PROPOSALS                                                                   consultation process in respect of the preliminary draft model
                                                                            law.
    Following wide circulation of TANZALEP’s legislative                        UNIDROIT is an inter governmental organisation that
proposals to stakeholders, the team received comments from                  deals with unification of private commercial law amongst
both government and private sector regarding the proposed                   nations, and to which certain governments have subscribed.
measures. The Project team has tabulated all comments                       The preliminary draft model law is available on UNIDROIT
received and has provided its position on the matters raised. It            website (http://www.unidroit.org). UNIDROIT intends to
is intended that issues raised by stakeholders will be discussed            organise a conference later this year where the preliminary
at final wider stakeholder meetings prior to implementation                 draft law will be discussed. IFC was strongly represented on
by government.                                                              the UNIDROIT advisory Board that drafted the draft law, and
                                                                            therefore well informed of the UNIDROIT preliminary draft
GOVERNMENT’S COMMITMENT TO                                                  model law
DEVELOP LEASING IN TANZANIA
    The Project continued to receive assurances from
Government on the government’s commitment to the
CAPACITY BUILDING AND TECHNICAL                                   local GAAP, tax regulation and lease classification issues.
ASSISTANCE                                                            The course was conducted by Mr. John McGerty, former
                                                                  Chairman of the Irish Finance House Leasing Committee and
•   10th African Leasing Convention & Training                    Lease Europe’s council member for Ireland. He was joined
    Between June 5th - 9th, 2006, IFC - PEP Africa, seco (Swiss   by Richard Marshall of PriceWaterhouseCoopers and Karim
Government’s competence centre for economic cooperation),         Anjarwalla of Anjarwalla & Khanna, Advocates who provided
and the African Leasing Association (Afro lease) jointly          expertise and advice on local and regional issues.
organised an Africa wide leasing convention and training for          The course drew participants from leasing practitioners
African leasing practitioners and regulators in Accra, Ghana.     and those interested in leasing, including business operators,
    The convention drew participants from across sub-Saharan      government departments, banks, law firms, and other
Africa where regulators and practitioners discussed leasing       interested parties from across East Africa. TANZALEP
development on the continent. The convention was attended         sponsored nine participants from the Tanzanian market to

by senior officials from Ghana’s Central Bank and Ministry of     attend the training.

Finance, as well as Ghanaian and African leasing companies.
Convention participants gained experiences on leasing
development from Ghana, a country whose leasing industry
has developed from the early 1990’s “as well as other Africa
countries”.
         At the convention, Messrs. Ron De Koven and Brian
Hauck, representing the International Institute for Unification
of Private Law (UNIDROIT), made a presentation regarding
UNIDROIT’s initiatives for a model law on leasing.
    The convention was followed by a training which focused
                                                                  Some participants listening to a presenter during a training session
on legal, tax, regulatory and accounting issues in leasing.       on “Accounting for Leasing” which was organized by Regal Exchange
Others areas of training were on funding of leasing operations,   based in England in collaboration with IFC – TANZALEP in Dar Es
                                                                  Salaam
securitization and risk management.
    TANZALEP sponsored two participants from Tanzania’s           TANZANIA BANKERS ASSOCIATION
banking sector to attend the Convention and training. IFC         (TBA) NEWSLETTER COVERS LEASING
Private Enterprise Partnership for Africa (PEP Africa)
sponsored participants from various countries across sub-             As part of the IFC-TANZALEP / TBA collaboration for
Saharan Africa to attend, including Rwanda, Cameroon and          leasing development, the Project team is delighted that TBA
Madagascar.                                                       has dedicated the current edition of the TBA newsletter to
                                                                  financial leasing. The TBA newsletter covers various issues
•   Media Training Session                                        that are important for leasing development.
    In order to acquaint Tanzanian media professionals with           During this period, the Project Team also submitted
matters of financial leasing, on May 26th, 2006 TANZALEP          its proposals for a leasing law and lease taxation to TBA’s
conducted training for the media. The session attracted Media     technical team for consideration.
professionals from both print and electronic media and focused
on various aspects of financial leasing and its importance for    TANZALEP MEETS GHANAIAN
national economic development.                                    LEASING COMPANIES

                                                                      The Tanzania Project team visited and held consultations
•   Regal Exchange Training
                                                                  with Ghanaian leasing companies so as to better inform
    From April 19th - 21st, Accounting For Leasing” a training
                                                                  TANZALEP’s business development initiatives in Tanzania.
session organised by Regal Exchange and Associates of the
                                                                  The Project will utilise experts from the Ghanaian market
United Kingdom, and supported by IFC - TANZALEP took place
                                                                  for on the job training for prospective leasing companies and
in Dar es Salaam. The training course provided participants
                                                                  banks in Tanzania under its business development services
with a comprehensive overview of lease accounting including
                                                                  initiative.
LAUNCH OF TANZALEP WEBSITE                                         CONTACTS

    The TANZALEP Website has been developed and is on test         In case of any queries on TANZALEP,
currently. Will soon be accessible to the public. Our address      please do not hesitate to contact the following people below:
is “http:/www/.ifc.org/tanzalep”.
                                                                   Taba A. Cookey
JULY - SEPTEMBER 2006 ACTIVITIES                                   Program Manager - Leasing
                                                                   International Finance Corporation - PEP Africa
For the period of July - September, 2006 the team will:            1, Central Link St, South Legon, Accra
•   provide training sessions for professional associations that   P.O. Box CT 2638, Cantonments, Accra
                                                                   GHANA
    have indicated interest in leasing
                                                                   Tel: +233 21 513152-7
•   continue efforts for capacity building for stakeholders
                                                                   Fax: +233 21 509069
•   provide legal and technical support for formation of the
                                                                   Tcookey@ifc.org
    Tanzania Leasing Association
•   Roll out business development for prospective leasing          Moyo Violet Ndonde
    companies                                                      Team Leader / Legal Advisor
•   conduct final roundtable discussions on:                       Mndonde@ifc.org
    i    taxation and leasing law proposals submitted to
         government;                                               Joass Lyatuu
    ii   stakeholders comments received;                           Financial Analyst
    iii initiatives under (UNIDROIT) .                             Jlyatuu@ifc.org
•   Conduct training and sensitization for Members of
    Parliament.                                                    Elizabeth Massanja
                                                                   PR / Program Assistant
                                                                   Emassanja@ifc.org

ABOUT THE PROJECT AND DONORS
                                                                   IFC - Tanzania Leasing Project (TANZALEP)
                                                                   World Bank Country Office
    TANZALEP was officially launched on the 24th May,
                                                                   50 Mirambo Street, Garden Avenue, 4th Floor
2005. The project is being implemented by IFC as a Technical
                                                                   P. O. Box 2054 DAR ES SALAAM - Tanzania
Assistance project, made possible with the generous support
                                                                   Tel: +255 (22) 2163200 (Ext.3291)
of seco (www.seco-cooperation.ch).                                 Fax: +255 (22) 2163328 / 2163295

                                                                   Besides, please be informed that our electronic newsletter can
                                                                   be accessed through the following
                                                                   websites “http://www.tanzania.go.tz”,
                                                                   “http://www.google.com” and
                                                                    “http:/www/.ifc.org/tanzalep”
                                                                   where all detailed documents will be accessed by
                                                                   the general public.

								
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