All roads lead to Marrakech

It’s some 35 years ago since we studied together and then went our different ways in our careers.

One of us spent the intervening time in finance, risk management, energy market development and policy strategy, the other focused mostly in and around leasing and asset finance.

Last week brought us back together at the Middle East & Africa Lease conference.

Two different pathways, but both roads led us to Marrakech for a seminal event focused on how leasing investment in equipment can translate into better public services, more reliable energy access and stronger businesses contributing strongly to economic growth in the region.

Why Marrakech and why now?

Geopolitics and the challenges of hosting conferences in the Gulf meant that the Marrakech replaced the traditional venue of Dubai.

The change put the conference in a market that illustrates the opportunity.

Morocco has embraced leasing and is one of the most advanced asset finance markets in Africa.  As it prepares for the 2030 World Cup, the country is also diversifying its economy and developing its solar energy sector.

The huge areas of opportunity

Electrification and energy transition were recurring themes throughout the conference.

While advanced economies rely heavily on centralised utility infrastructure, much of Africa and the Middle East uses a more decentralised model. That creates opportunities to finance solar generation, battery storage and other local energy and other utility assets. Financing generation and storage close to users can make large, uneconomic grid investments less of an obstacle to growth. 

Agriculture and food security offered another clear opportunity. A significant share of Africa’s population (46% per the FAO, vs 5% in Europe) works in agriculture, yet the sector remains under-mechanised. Leasing can help finance the equipment needed to improve productivity, linking local investment directly to productive assets, freeing up labour for other industries. 

The different actors participating

The breadth of the conference mattered. Bank-owned and independent lessors joined development finance institutions, local funders, leasing associations, credit rating specialists, technology providers, policy makers and original equipment manufacturers. Together, these groups span the funding, assets, expertise and policy frameworks needed to turn opportunities into workable leasing programmes. 

The value of a high visibility success stories – the Kenyan case study

The Kenyan Treasury’s presentation gave the debate a tangible reference point: a government vehicle-leasing programme reporting both substantial savings and better service delivery.

According to the presentation, the programme generated tens of millions of dollars in savings through better purchasing, fuel management, insurance and management of vehicles throughout their working lives. The reported benefits went beyond cost: response times to distress calls fell by 50% over eight years, with well-maintained police patrol vehicles reliably available across the country. The presentation also reported an extremely positive impact on crime levels. 

The programme began in 2012 when the Kenyan government recognised the potential of leasing and piloted a leasing scheme in transport, with a particular focus on the provision of vehicles for police and security services. Its ambitions extended beyond supplying a fleet. 

The government’s six objectives linked better public services with the development of local industry:

1. Provide more affordable access to assets and improve service delivery 
2. Unlock resources and strengthen the management of assets throughout their lifecycle
3. Stimulate growth in local motor vehicle assembly. 
4. Develop the leasing industry and, through it, the wider financial sector to support economic growth. 
5. Make Kenya a source of vehicles for the wider East African region. A stronger market for vehicles coming off lease would reduce second-hand imports and ease pressure on foreign reserves. 
6. Create additional employment opportunities while providing cost-effective official government transport. 

The road ahead

The Kenyan example shows what is possible, but leasing still plays a relatively small role in most African and Middle Eastern economies compared with more established markets. 

The obstacles are practical: limited funding, high borrowing costs, too few strong local leasing businesses and, in some markets, difficulty repossessing equipment when contracts are not honoured. 

There are encouraging signs. Local institutional investors already fund lessors in some markets, with further participation expected. Development finance institutions are working to reduce lenders’ risk and help lessors access cheaper international funding. Work is also under way on credit rating methods that better reflect the risks of individual countries and companies. 

From conference ambition to practical progress 

For us, the discussion in Marrakech brought the opportunity and the challenge into focus. Leasing can strengthen public services and connect domestic capital with productive assets. The task now is to turn that potential into programmes that work—and can be repeated. 

Kenya offers one example of a starting point, not a one-size-fits-all blueprint. Its experience shows how well-structured government leasing can reduce the need for large upfront spending, lower costs over an asset’s working life and improve service delivery. Other governments should adapt the model to their own needs and markets. 

Strong domestic leasing companies are central to that effort. National programmes can provide a reliable base of demand, while governments, development finance institutions and institutional investors help build the funding markets to support them. This would give local capital a clearer route into businesses and the equipment they need. 

The next step is to connect those national markets. Cross-border leasing should form a practical part of the African Continental Free Trade Area (AfCFTA), supported by compatible regulations, enforceable contracts and regional financing arrangements. Industry associations, financiers and policymakers should take concrete proposals to the AfCFTA Secretariat to help make that ambition workable. 

When the conference returns to Africa, progress should be measured not by opportunities identified, but by local champions established, cross-border markets developed, productive assets financed and public services improved. 

About the authors:

In recent years Ian has helped OEMs, lessors, insurers and policy makers develop their approaches around energy transition.  Based in Zurich, Ian works with clients around the world.

Previously at the Central Bank of Nigeria, his experience spans financial markets, development finance, energy-sector reform and economic policy. Based in Abuja, his work focuses on African capital formation, domestic financial-sector development, energy-transition finance and the evolving global monetary architecture.