Zimbabwe's leading leasing company, African Century Leasing is failing to access $35 million worth of lines of credit from different external financiers due to challenges faced in repatriating due loans. The leasing company has already secured credit lines from two reputable financial institutions, Botswana based Norsad Finance Limited and Belgium based Incofin Investment Management.
ACL managing director Mr Stanley Matiza, told The Herald Business that the foreign currency situation currently affecting the country has had an effect on the firm's lines of credit.
"We have managed to secure credit lines for the horticulture and mining sectors, but we have had challenges in repatriating the loans that we secured in the past and such a situation has seen our financiers holding on to funding.
"Close to $35 million lines of credit are stuck with different financial institutions and this poses a challenge to our plans as a leasing firm," said Mr Matiza.
Mr Matiza said the leasing industry requires more long term funding to meet the needs of the local industry. The company has grown to be a lease finance company for vehicles and machinery with clients from both the private and public sectors.
ACL is a registered leasing company in terms of the Companies Act (Chapter 24:03) and is regulated by the Reserve Bank of Zimbabwe and governed by the Moneylending and Rates of Interest Act (Chapter 14:14)and the Hire Purchase Act (Chapter 14:09).
The company is a focused leasing outfit providing asset finance to the productive sectors of the economy. ACL opened its doors to the public on February 09, 2011, following licensing by the Registrar of Companies, the Reserve Bank of Zimbabwe and the Zimbabwe Investment Centre.
Assets financed include agricultural equipment encompassing tractors, trailers, implements and centre pivots; manufacturing and mining equipment; passenger motor vehicles and haulage trucks. The tenure of the leases ranges from one to three years with monthly payments.