Structured Finance in Africa

Ashenafi Fanta (), Michael Graham () and Daniel Asante-Amponsah ()
Additional contact information
Ashenafi Fanta: University of Stellenbosch Business School
Michael Graham: University of Stellenbosch Business School
Daniel Asante-Amponsah: PwC Ghana

Chapter Chapter 11 in The Economics of Banking and Finance in Africa, 2022, pp 373-404 from Palgrave Macmillan

Abstract: Abstract Structured finance solutions involve the efficient combination of advanced private and public financial arrangements tailored to refinance and hedge a specified profitable economic activity at a lower cost of capital. The chapter reviews the theoretical and empirical evidence on structured finance and how it could be used to respond to the changing financing demands of corporate firms and governments. More specifically, the chapter explores the state and techniques of the structured finance market in Africa. The requisite conditions for the growth of the structured finance market in Africa are also examined. The results of the review show that the structured finance market is largely absent in Africa except in Nigeria, Ghana, South Africa, and Cote D’Ivoire. Within these countries, structured finance is largely used to respond to the financial needs of infrastructural development. The chapter attributes the underdevelopment of the structured finance market in Africa to the unstable macroeconomic environment and less sophisticated nature of the financial markets in most countries in the continent. Countries should, therefore, endeavor to develop policies that create a stable and enabling environment for the development of the structured finance market on the continent. Moreover, governments must provide tax incentives and tax cuts to make structured finance products more appealing to the investor community.

Keywords: Structured finance; Banking; Africa (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-04162-4_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031041624

DOI: 10.1007/978-3-031-04162-4_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().