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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