Abidjan – A Côte d’Ivoire-based legal expert is championing securitization as a key to unlocking new funding streams for West Africa, particularly in vital sectors like healthcare. While the financial tool – which bundles assets and transforms them into marketable securities – has gained traction globally, its potential remains largely untapped in the region [[1]]. Benoît Diouf of Asafo & Co. argues that wider adoption of securitization could provide crucial investment without adding to national debt burdens, offering a novel approach to financing progress across the West African Economic and Monetary Union (UEMOA).
Abidjan, Côte d’Ivoire – A legal expert is advocating for wider adoption of a financial tool called securitization, arguing it could unlock funding for crucial sectors like healthcare in West Africa without increasing national debt. Benoît Diouf, a licensed attorney registered with the Abidjan Bar Association, has spent recent years promoting securitization as a viable alternative to traditional financing methods.
Diouf, who previously practiced law in Paris, now runs the firm Asafo & Co in Abidjan. He believes securitization – the practice of pooling assets and selling them as securities – is often misunderstood, and its benefits are largely untapped in the region.
“Thanks to securitization, it is possible to strengthen our health system without indebtedness,” Diouf explained during a recent discussion. “Hospitals have revenue. Even if they receive subsidies from the state, there’s no problem. Ten structures can come together and use securitization to strengthen themselves. Securitization is a very useful tool for them.”
He distinguishes securitization from what he terms “batalé,” a Wolof word he uses to describe arrangements that don’t guarantee the preservation of asset value. Diouf emphasized that securitization allows for the monetization of assets without losing their underlying worth, providing immediate liquidity and increasing financing capabilities.
The tool, initially developed to address financing issues in the real estate market, has evolved into a broader risk management instrument, according to Diouf. He points to its potential to transfer risks such as non-payment and bankruptcy.
With approximately 20 years of experience in the international banking and financial sector, primarily in Europe and Francophone Africa, Diouf is also an expert in banking and financial regulation. He specializes in capital markets activities and structured financing within the West African Economic and Monetary Union (UEMOA).
Diouf advises and assists asset management companies, originators, and investors in structuring, documenting, and negotiating pioneering securitization transactions in the regional financial market. He has contributed his expertise to complex financial operations, including the structuring of legal documentation for hedging instruments and pension-backed transactions.
He is also a co-author of the reform of the Basic Texts governing the regional financial market. Diouf expressed his commitment to demystifying complex financial topics and fostering debate around securitization’s potential benefits.
“These are important topics that we must address in order to stimulate debate,” he said. “Securitization is a rather interesting mechanism, and I am passionate about it.”
Éducateur des finances
Demba DIENG
