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

- UNIDROIT Model Law on Leasing

- Support for Establishment of the

Tanzania Leasing Association (TALA)

- Capacity Building And Technical

Assistance

• 10th African leasing convention & Training

• Media Training Session

• Regal Exchange Training Session

• Tanzania Bankers Association (TBA)

Newsletter Covers Leasing

• TANZALEP Meets Ghanaian Leasing

Companies

• Launch of TANZALEP Website

• July - September 2006 Activities

• About The Project And Donors

• Contacts

TANZANIA LEASING PROJECT (TANZALEP)

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

READERS WELCOME NOTE

Dear Readers,

Welcome to this fourth edition of the International

Finance Corporation - Tanzania Leasing Project’s (IFC-

TANZALEP) quarterly electronic newsletter. The objective

of our newsletter is to update you on leasing issues, and

TANZALEP’s activities in Tanzania.

In the previous quarter, the Project submitted its draft

for a leasing law as well as recommendations for leasing

taxation reform to Government. The Project subsequently

held discussions with various government departments

and senior officials on TANZALEP’s proposed measures.

The Project also provided support for establishment of a

Tanzania Leasing Association.

From the period of July to September, 2006, TANZALEP

will hold sensitization and capacity building sessions for

Members of Parliament and Government; will provide

business development services for interested stakeholders

in the private sector; and training for the judiciary, lawyers

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

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COMMENTS RECEIVED FROM STAKEHOLDERS ON DRAFT LEASING LAW AND LEASE TAXATION PROPOSALS

Following wide circulation of TANZALEP’s legislative

proposals to stakeholders, the team received comments from

both government and private sector regarding the proposed

measures. The Project team has tabulated all comments

received and has provided its position on the matters raised. It

is intended that issues raised by stakeholders will be discussed

at final wider stakeholder meetings prior to implementation

by government.

GOVERNMENT’S COMMITMENT TO DEVELOP LEASING IN TANZANIA

The Project continued to receive assurances from

Government on the government’s commitment to the

NEWS IN PICTURESdevelopment of leasing. The Minister for Finance, Hon. Zakia

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.

LEASING NEWS FROM THE MARKET • Support for Establishment of the Tanzania

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

UNIDROIT has released a preliminary draft model law

on leasing as established (prepared) by a Unidroit Advisory

Board and authorized for transmission to Governments, for

finalization, by the Unidroit Governing Council at its 85th

session, held in Rome from 8 to 10 May 2006. UNIDROIT

is currently working out the details of the intergovernmental

consultation process in respect of the preliminary draft model

law.

UNIDROIT is an inter governmental organisation that

deals with unification of private commercial law amongst

nations, and to which certain governments have subscribed.

The preliminary draft model law is available on UNIDROIT

website (http://www.unidroit.org). UNIDROIT intends to

organise a conference later this year where the preliminary

draft law will be discussed. IFC was strongly represented on

the UNIDROIT advisory Board that drafted the draft law, and

therefore well informed of the UNIDROIT preliminary draft

model law

A cross section of participants of Afro Lease Convention listening to the opening speech of the convention delivered by the representative to the Minister for Finance of Ghana during the 10th Afro lease Convention and Training which was from June 5th to 9th 2006 in Accra, Ghana

A mixture of leasing practitioners and professionals interested in leasing, paying attention to a “ hands - on” example on Accounting for Leasing operations during a training session, held in Dar Es Salaam on April 19th to 21st 2006

CAPACITY BUILDING AND TECHNICAL ASSISTANCE

• 10th African Leasing Convention & Training

Between June 5th - 9th, 2006, IFC - PEP Africa, seco (Swiss

Government’s competence centre for economic cooperation),

and the African Leasing Association (Afro lease) jointly

organised an Africa wide leasing convention and training for

African leasing practitioners and regulators in Accra, Ghana.

The convention drew participants from across sub-Saharan

Africa where regulators and practitioners discussed leasing

development on the continent. The convention was attended

by senior officials from Ghana’s Central Bank and Ministry of

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

on legal, tax, regulatory and accounting issues in leasing.

Others areas of training were on funding of leasing operations,

securitization and risk management.

TANZALEP sponsored two participants from Tanzania’s

banking sector to attend the Convention and training. IFC

Private Enterprise Partnership for Africa (PEP Africa)

sponsored participants from various countries across sub-

Saharan Africa to attend, including Rwanda, Cameroon and

Madagascar.

• Media Training Session

In order to acquaint Tanzanian media professionals with

matters of financial leasing, on May 26th, 2006 TANZALEP

conducted training for the media. The session attracted Media

professionals from both print and electronic media and focused

on various aspects of financial leasing and its importance for

national economic development.

• Regal Exchange Training

From April 19th - 21st, Accounting For Leasing” a training

session organised by Regal Exchange and Associates of the

United Kingdom, and supported by IFC - TANZALEP took place

in Dar es Salaam. The training course provided participants

with a comprehensive overview of lease accounting including

local GAAP, tax regulation and lease classification issues.

The course was conducted by Mr. John McGerty, former

Chairman of the Irish Finance House Leasing Committee and

Lease Europe’s council member for Ireland. He was joined

by Richard Marshall of PriceWaterhouseCoopers and Karim

Anjarwalla of Anjarwalla & Khanna, Advocates who provided

expertise and advice on local and regional issues.

The course drew participants from leasing practitioners

and those interested in leasing, including business operators,

government departments, banks, law firms, and other

interested parties from across East Africa. TANZALEP

sponsored nine participants from the Tanzanian market to

attend the training.

TANZANIA BANKERS ASSOCIATION (TBA) NEWSLETTER COVERS LEASING

As part of the IFC-TANZALEP / TBA collaboration for

leasing development, the Project team is delighted that TBA

has dedicated the current edition of the TBA newsletter to

financial leasing. The TBA newsletter covers various issues

that are important for leasing development.

During this period, the Project Team also submitted

its proposals for a leasing law and lease taxation to TBA’s

technical team for consideration.

TANZALEP MEETS GHANAIAN LEASING COMPANIES

The Tanzania Project team visited and held consultations

with Ghanaian leasing companies so as to better inform

TANZALEP’s business development initiatives in Tanzania.

The Project will utilise experts from the Ghanaian market

for on the job training for prospective leasing companies and

banks in Tanzania under its business development services

initiative.

Some participants listening to a presenter during a training session on “Accounting for Leasing” which was organized by Regal Exchange based in England in collaboration with IFC – TANZALEP in Dar Es Salaam

LAUNCH OF TANZALEP WEBSITE

The TANZALEP Website has been developed and is on test

currently. Will soon be accessible to the public. Our address

is “http:/www/.ifc.org/tanzalep”.

JULY - SEPTEMBER 2006 ACTIVITIES

For the period of July - September, 2006 the team will:

• provide training sessions for professional associations that

have indicated interest in leasing

• continue efforts for capacity building for stakeholders

• provide legal and technical support for formation of the

Tanzania Leasing Association

• Roll out business development for prospective leasing

companies

• conduct final roundtable discussions on:

i taxation and leasing law proposals submitted to

government;

ii stakeholders comments received;

iii initiatives under (UNIDROIT) .

• Conduct training and sensitization for Members of

Parliament.

ABOUT THE PROJECT AND DONORS

TANZALEP was officially launched on the 24th May,

2005. The project is being implemented by IFC as a Technical

Assistance project, made possible with the generous support

of seco (www.seco-cooperation.ch).

CONTACTS

In case of any queries on TANZALEP,

please do not hesitate to contact the following people below:

Taba A. Cookey

Program Manager - Leasing

International Finance Corporation - PEP Africa

1, Central Link St, South Legon, Accra

P.O. Box CT 2638, Cantonments, Accra

GHANA

Tel: +233 21 513152-7

Fax: +233 21 509069

Tcookey@ifc.org

Moyo Violet Ndonde

Team Leader / Legal Advisor

Mndonde@ifc.org

Joass Lyatuu

Financial Analyst

Jlyatuu@ifc.org

Elizabeth Massanja

PR / Program Assistant

Emassanja@ifc.org

IFC - Tanzania Leasing Project (TANZALEP)

World Bank Country Office

50 Mirambo Street, Garden Avenue, 4th Floor

P. O. Box 2054 DAR ES SALAAM - Tanzania

Tel: +255 (22) 2163200 (Ext.3291)

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.