The leasing portfolio in Uganda presently stands at about sh30b, and the market is shared between the dfcu Group and the East African Development Bank.
This makes financial sub-sector one of the fastest growing in the economy, according to the dfcu Groupâ€™s Managing Director, John Taylor.
â€œMany bankers have come to realise that security on a loan is not that important but the drive to work and improve on oneâ€™s economic wellbeing,â€ Taylor said on Monday.
This was during the African Leasing Association 7th Annual Leasing Convention, being held at the Nile International Conference Centre. The convention ends today.
Taylor said that their leasing section has become one of the most successful, because they give out machinery to people and business establishments that they recognise are ready to sacrifice everything in order to achieve their dreams.
dfcu Leasing, which holds about 80 percent of the market, usually gives out machinery to upcoming business firms without any security or collateral.
The success stories in the local transportation industry and specifically bus companies, has largely come about due to leasing.
Taylor said that according to a recent survey, the majority of business establishments, which are both small and medium enterprises lack start-up capital to expand on their production lines, and produce on a large scale basis.
He said that although the leasing business, as a proportion to direct lending is good, it only stands at one percent, as a proportion to capital formation.
â€œWe want this to rise to about 5 percent within the next three years. Across Africa, leasing is about 11 percent as a proportion to capital formation, while in the USA, it stands at about 30 percent,â€ he said.
The initiative for the convention has mainly come from the dfcu Group, but Support Projects for Expansion and Enterprise (SPEED), a USAID programme and the UK Department for International Development (DfID), have provided funding.
The three-day convention brings together about 100 officials from nine African countries, as well as those from local leasing firms.
dfcu Leasing is part of the dfcu Group whose financial resources are in excess of sh15b.
Leasing Total Hits Sh30b