The Addis Ababa City Administration's Credit & Small Enterprises Development Agency and Addis Credit and Saving S.C are to jointly establish a construction machinery rental enterprise, Fortune reported.

The new enterprise under formation with 500 million Ethiopian birr capital is intended to lease machinery to the city's micro & small enterprises.

The share of each entities in the enterprise is not determined yet, however, Addis Credit and Saving will be the largest shareholder according to the CEO of Addis Credit and Saving.

The enterprise is planned to lend machinery in three modes; financial leasing, hire & purchase and operational lease.

The city administration is awaiting the issuance of directive by the National Bank of Ethiopia, following a recent amendment to the Capital Goods Leasing Proclamation mandating the central bank to license financial lease and hire & Purchase businesses.

Source: Fortune