IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-031-04162-4_11.html
   My bibliography  Save this book chapter

Structured Finance in Africa

In: The Economics of Banking and Finance in Africa

Author

Listed:
  • Ashenafi Fanta

    (University of Stellenbosch Business School)

  • Michael Graham

    (University of Stellenbosch Business School)

  • Daniel Asante-Amponsah

    (PwC Ghana)

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.

Suggested Citation

  • Ashenafi Fanta & Michael Graham & Daniel Asante-Amponsah, 2022. "Structured Finance in Africa," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Joshua Yindenaba Abor & Charles Komla Delali Adjasi (ed.), The Economics of Banking and Finance in Africa, chapter 0, pages 373-404, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-031-04162-4_11
    DOI: 10.1007/978-3-031-04162-4_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pmschp:978-3-031-04162-4_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.