Leasing : an underutilized tool in rural finance

Abstract

This paper examines the potential of leasing as a rural finance tool. It analyzes the utility of leasing for rural enterprises as a means to acquire equipment and reviews the experience of a cross-section of entities providing leasing in rural areas. Additionally, the paper provides an overview of leasing (types, advantages, risks, and enabling environment) and reviews World Bank and International Finance Corporation (IFC) experience in supporting development of the leasing sector. The paper concludes by providing recommendations for enhancing World Bank support to expand access to leasing in rural areas.