Africa is on the cusp of its most ambitious transformation. By 2050, the continent aims to compete globally through value-added manufacturing, industrialisation, and innovation. ALSO READ: People should indeed be at the center of Africa’s digital transformation Yet traditional financing, World Bank and IMF loans or quick bilateral deals, remains too slow, conditional, and limited to bridge Africa’s estimated $100–170 billion annual infrastructure gap. Loans often come with short tenors, bureaucratic hurdles, and strict conditions, while bilateral deals can erode sovereignty, reduce transparency, and leave nations vulnerable to commodity swings. ALSO READ: MPs raise red flags over ‘tied loans’ as Rwf70bn irrigation deal passes Africa knows this reality, yet we often avoid better alternatives. Perhaps old fears linger, like a stubborn witch we acknowledge but lack the courage to confront. As a result, we recycle financing models that limit ambition rather than unlock it. Asset securitisation is one such alternative. It converts predictable future cash flows, export revenues, agricultural sales, mining royalties, or infrastructure fees, into tradable securities, typically issued through special purpose vehicles (SPVs). Investors are repaid from ring-fenced, transparent cash flows. The outcome is transformative. Governments and institutions gain upfront capital without selling national assets, taking on unsustainable debt, or surrendering long-term control. Interest rates fall, maturities stretch to 10–20 years or more, and patient capital becomes available for genuinely transformative projects. What Africa needs now is not another diagnosis of its financing gap, but the courage to confront the old fears preventing adoption of smarter tools. The witch is known. The solution is known. What remains is the will to act. The potential of securitisation is no longer theoretical. Across Africa, AfDB-led initiatives are delivering measurable progress, showing this tool can mobilise capital at scale. Yet momentum is still largely driven by multilateral institutions and global banks, which retain significant control. Without empowering local experts to navigate financial engineering and alternative financing, securitisation risks being slowed, sidelined, or shaped to serve external interests rather than national priorities. Africa must adopt and own these tools to ensure genuine economic sovereignty. The complexity of securitisation is daunting. Governments must circumnavigate arrangers, rating agencies, legal frameworks, asset managers, and administrative providers, a maze that can overwhelm even the most capable teams. For many African economies, these hurdles have become a second obstacle, right after the witch itself. Projects stall not from lack of potential but from perception of the process as a mountain too steep to climb. This is where intermediaries such as MAEC Capital (UK) and Securities Africa play a critical role. With expertise in financial engineering and alternative project financing, they demystify securitisation for governments and institutions. By coordinating with local professionals, regulators, and investors, they translate Africa’s latent potential into bankable, executable projects. Notably, MAEC Capital has successfully advocated for recognition of loan enhancement instruments issued by non-rated African banks, a breakthrough challenging long-standing market biases. Their role goes beyond advisory. They bridge the gap between vision and execution, enabling countries to access long-term capital efficiently, responsibly, and on equitable terms. Africa is rich in predictable revenue streams, from infrastructure projects, under-the-earth resources, and agricultural production, making it ideal for securitisation. Issuing bonds backed by future revenues can attract long-term financing with better terms, funding irrigation schemes, processing factories for high-value export crops, and other productive investments, while preserving sovereignty. Securitisation recycles future earnings into today’s development needs without surrendering ownership of assets. Challenges remain. Robust legal frameworks, accurate asset valuation, strong governance, and investor confidence are essential. Yet countries like Rwanda and others with proven governance and respect for the rule of law, demonstrate that, with the right partners, securitisation can succeed. By leveraging its own assets, resources, agricultural flows, and service revenues, through securitisation, Africa can finance transformative projects on its terms. MAEC Capital and similar agencies are more than facilitators; they are enablers of financial independence, ensuring ambitious visions are not delayed by technicalities. Securitisation, properly harnessed, could be a key to unlocking Africa’s future supply of affordable, long-term capital at scale. What remains is not a lack of options, but the courage to confront old fears, finally kill the witch, and embrace financing models capable of matching Africa’s ambition. The writer is an ideator and alternative development financing strategist.
