WHEREAS, for those investors who have the desire, knowledge, and profession to participate in various investment activities but could not act due to lack of capital, it is necessary to create an enabling environment for the establishment of alternative sources of financing;

WHEREAS, it is believed that lessors of capital goods should have the necessary legal foundations;

WHEREAS, the existing laws concerning capital leasing business are found incomplete;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows