Renowned Ghanaian investor and co-founder of Blue skies is calling for a total overhaul of the leasing act.
According to Seth Dei, some provisions in the law stifle the expansion of leasing companies in Ghana.
The Leasing act prohibits companies from entering transactions that are more than 25 percent of a company’s capital.
Seth Dei who used to be in the leasing industry said this totally conflicts with best practices globally.
He says it was the main reason why he pulled out of the leasing business.
“Part of the law says, if you want to do one lease, that lease cannot be more than 25 percent of your capital. That means if you have 100 dollars in capital, one transaction cannot be more than 25 dollars. Leasing is a leverage business.”
He continued to explain the business of leasing in other jurisdictions “if you have 100 dollars, you should be able to do business worth 1000 dollars, leveraging the capital ten times.
With our current laws, you cannot grow a leasing company under those circumstances.”
By: Kwaku Anim Boadu/citifmonline.com/Ghana