AFIS Summit: Sani Yaya recommends securitization as an alternative tool to finance African economies

Finance

Saturday, 18 November 2023 13:03

AFIS Summit: Sani Yaya recommends securitization as an alternative tool to finance African economies

(Togo First) - Securitization is an alternative for financing African economies. Sani Yaya, the Togolese minister of finance, expressed this view last Thursday, on the final day of the African Financial Industry Summit (AFIS) in Lomé.

Yaya stressed that securitization is indispensable, for the development of businesses, financial institutions, and government projects.

He added that Togo is a pioneer when it comes to securitization, in West Africa. In 2016, the country carried out its first securitization operation, falling into the steps of Ivory Coast and Senegal. Lomé raised CFA150 billion through the operation.

Togo’s latest operation was carried out by Orabank-Togo. The lender completed a receivables securitization of CFA25 billion, a first for one of the bank’s countries.

Several eminent figures in the African financial sector attended the AFIS. These included Edoh Kossi Amenounve, Managing Director of the WAEMU stock exchange, the BRVM, Serge Ekué, President of the BOAD, and Sergio Pimenta, Vice President for Africa at the IFC (World Bank).

Securitization allows financial institutions, companies, and governments to raise capital by transforming their assets, such as mortgages, trade receivables, or real estate assets, into securities tradable on financial markets.

Esaïe Edoh

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