LEASAFRIC's operational strategy revolves around the twin concepts of "least cost operation" and "credit risk minimization".
Credit Risk Minimization:
LEASAFRIC has recognized four main operational risk areas associated with lease financing in Ghana and has developed appropriate hedges against them. These are equipment related risks, lessee-related risks, portfolio risks and foreign exchange risks.

a. Equipment related risks
LEASAFRIC takes care of the equipment related risks by financing only equipment which satisfy the following conditions:
equipment must have satisfactory maintenance facilities in Ghana;
equipment must not be unique but must have a ready secondary market;
equipment must be productive with respect to the lessee's business;
In addition, Leasafric requires lessees to comprehensively insure the leased equipment, with LEASAFRIC named in the policy as the beneficiary (loss payee).
The main classes of equipment on our books now are Heavy duty Vehicles, Light Vehicles, Mining Equipment, Printing Equipment, Generators and Office Equipment.

b. Lessee-related risks
LEASAFRIC only finances equipment for credit worthy clients after careful credit analyses of their ability to generate the required cash flow to service lease payments. Also LEASAFRIC minimizes lessee default risk further by denominating lease payments in the currency that is directly generated by the lessee's operations thereby eliminating the burden of exchange risks from the lessee

c. Portfolio risks
To minimize portfolio risks, LEASAFRIC is building a diversified lease portfolio across the main industry segments in Ghana. LEASAFRIC does not therefore concentrate its portfolio in any one industry. The bulk of LEASAFRIC's portfolio has been in the areas of Mining, Construction, Manufacturing, Aviation and Transport sectors of the economy.

d. Foreign Exchange risk:
LEASAFRIC does, as a rule, not incur any uncovered exchange risks arising out of its operations. The company writes both US Dollar denominated leases and Cedi denominated leases. In principle foreign exchange borrowings are used to finance leases for which the lease rental payments are denominated in foreign exchange.