Financial professionals gathered in Dakar on September 25 for the Structured Finance Africa Forum (SFA), organized by Invictus Capital & Finance, to explore ways of channeling local and international savings into development. Among the speakers was Hassoune Anouar, Managing Director for West Africa at GCR Ratings, who shared his analysis on the future of structured finance—particularly securitization within the West African Economic and Monetary Union (WAEMU)—with Ecofin Agency.

Anouar, who heads one of Africa’s leading rating agencies (backed by Moody’s and active in 32 countries), tracks this nascent but fast-growing market. He argues that securitization, first introduced in the Union in 2018, is set to become a key financing tool, especially in social sectors such as electricity, housing, and water—without further burdening public debt.

In this interview, Anouar discusses the outlook for what remains a marginal instrument, representing less than 5% of funding raised to date. He maintains that securitization is bound to play a larger role as West African states diversify their financing sources and appeal to increasingly selective investors.

Ecofin Agency: What exactly does your structured ratings proposal involve?

Hassoune Anouar: The proposal is innovative: it would allow WAEMU member states to jointly issue securitization bonds. In simple terms, securitization means issuing bonds whose returns depend not on a country’s sovereign rating but on a pool of assets transferred to investors. Under this plan, states could back the bonds with future VAT revenue streams. The approach offers two advantages: it doesn’t add to public debt, and it can be structured under Islamic finance principles, making it appealing to both Muslim and non-Muslim investors. It’s a novel solution, even if putting it into practice may take time.

What’s your view of the structured finance market in WAEMU at the moment?

When we began our rating work about twelve years ago, structured finance barely existed. Most financing came from two main sources: banks and public debt. The first major shift came in 2014 with Senegal’s inaugural sukuk [Islamic bond], followed by the region’s first securitization deal in 2018. Since then, activity has grown steadily. Of course, we started later than Europe, Asia, or the U.S., but the catch-up is now clear. Today, structured finance still makes up less than 5% of total funding in our economies. But if we look ahead 10, 15, or even 20 years, the outlook for structured finance in West Africa is very promising.

We rate between four and eight new deals each year. That may seem modest by international standards, but it’s substantial for a region still discovering this instrument. Looking ten years ahead, we could easily see a market with around twenty new ratings annually.

And in terms of securitization, where does the market stand right now?

The first securitization deal in the region came in 2018. In the early years, there were only one or two issues annually. Today, we rate every new transaction. Securitization and ratings go hand in hand — you can’t have one without the other. At present, our portfolio includes 24 active securitization deals, and we rate between four and eight new ones each year. That may seem modest by international standards, but it’s substantial for a region still discovering this instrument. Looking ten years ahead, we could easily see a market with around twenty new ratings annually.

This year has seen a surge in deals. Has the market reached a tipping point?

Absolutely. So far in 2025, we’ve rated five securitization deals, and three more are expected before year-end, for a total of eight. In 2026, we anticipate between eight and ten. But it’s not just about the numbers. Three trends stand out: the volume of transactions is rising, deal sizes are getting bigger, and the range of originators is becoming more diverse. At first, issuers were mainly banks and microfinance institutions. Now, we’re seeing industrial and commercial firms step in, and discussions are already underway for governments themselves to enter the market.

Would you say the recent securitization in Côte d’Ivoire, part of the ‘Electricity for All’ program, reflects this trend?

It’s a prime example of securitization being used for development. It’s not only about helping banks refinance their balance sheets; it’s about mobilizing future cash flows to meet social needs. In UEMOA, electricity access is still only around 50%. Thanks to this mechanism, thousands of households will be connected. That’s the real strength of securitization: turning future receivables into immediate funding that directly benefits the population.

There is scope to securitize assets tied to water and agriculture—for example, future revenues from agro-industrial production—or even cash flows from factoring operations. Essential needs like electricity, water, housing, and food all represent potential areas.

Beyond electricity, what other underlying assets could states utilize for securitization?

Traditionally, securitization focused mainly on bank assets, such as consumer credit and SME loans. Now we’re seeing longer-term assets enter the market, especially mortgages. In a region facing an annual shortfall of 250,000 homes, using securitization to finance housing could make a major difference. There is also scope to securitize assets tied to water and agriculture—for example, future revenues from agro-industrial production—or even cash flows from factoring operations. Essential needs like electricity, water, housing, and food all represent potential areas. And today, critical needs such as internet, telecoms, and education also fall into this category.

We’re seeing growing interest from international investors in CFA franc–denominated deals, which shows the market is attracting attention beyond the region.

But these deals all rely on tapping the regional market. Is there a risk of saturation, with Senegal stepping up its borrowing, Côte d’Ivoire more than doubling its bond issues, and other countries also competing aggressively?

I don’t think so. There is plenty of savings available. Insurance companies, pension funds, and reserve funds manage large assets that are still underused for this type of financing. We’re also seeing growing interest from international investors in CFA franc–denominated deals, which shows the market is attracting attention beyond the region. Our job now is to make it even more attractive — by increasing the number and size of transactions and introducing tax incentives, especially for foreign investors.

Foreign investors often tend to consider risk in a broad, global manner. How do you manage that perception?

Three conditions are key. First, you need an anchor investor. The International Finance Corporation (IFC), for example, has said it is ready to play that role. When the IFC comes in, it attracts other major players like the African Development Bank (AfDB), the Islamic Development Bank (IDB), and the Asian Development Bank. Second, transparency is critical — and that’s where rating agencies come in, to provide clear and independent information. Third, standardization: too many complex legal structures reduce market clarity. A standardized approach to documentation and financial modeling makes transactions faster, more attractive, and easier to rate.

There’s a project to set up a pan-African rating agency. How do you view that initiative?

That agency already exists — it’s GCR. We’re active in 32 countries with five regional offices, and we plan to keep expanding across Africa. Ultimately, we expect to be present in about 40 of the continent’s 54 countries. Meanwhile, the African Union (AU) is working on creating a public agency, but its legitimacy is in doubt. How can an agency promoted and funded by states credibly rate those same states without creating a conflict of interest? It’s like trying to be both player and referee. An agency’s credibility depends above all on its independence — and it’s investors, not governments, who need to be convinced.

Moody’s applies its own approaches for global markets, while we continue to use ours, which are designed for local and regional contexts. We’ve maintained our methodological independence.

You are now wholly owned by Moody’s. Can we truly speak of independence? Aren't you compelled to follow Moody’s methodologies, which are already criticized in Africa?

Moody’s hasn’t altered our rating methodologies. They remain tailored to African markets. Moody’s applies its own approaches for global markets, while we continue to use ours, which are designed for local and regional contexts. We’ve maintained our methodological independence.

Senegal is facing what has been described as a near-debt crisis. What is your assessment of the situation?

We don’t officially rate Senegal, but we do provide a credit estimate. The issue isn’t simply how high the debt is, but the context behind it. Since gas was discovered, the government has ramped up borrowing to speed up infrastructure development. Is that risky? Yes. But is it rational? Yes as well, because future revenues from gas and oil could offset that debt — as long as public finances are managed transparently and efficiently. It’s an aggressive gamble, but one that could pay off in the long run.

Senegal faces major Eurobond repayments over the next few months. How can it meet them, given that it cannot access international markets without a new IMF program?

Foreign-currency debt is normally refinanced. That’s standard practice, even in countries like France, Germany, or Japan.

The problem is that current conditions are highly unfavorable, with interest rates sometimes reaching 12%...

This is precisely when economic diplomacy becomes crucial. Senegal will need to rally its partners, obtain guarantees, and negotiate a workable refinancing plan.

Senegal has both the resources and the backing. The key challenge will be to convince them of the project’s credibility and the country’s ability to manage its debt. [...] Benin faced a major debt wall but refinanced it successfully, thanks to the Finance Minister’s skill, economic diplomacy, and presidential networks. Its credit rating remained stable despite those concerns. There’s no reason Senegal can’t do the same, provided it makes a convincing case.

Will Senegal reach a deal with the IMF before the deadline?

It’s very likely. But it won’t just be the IMF: the World Bank, bilateral partners, and private lenders could all play a role in securing the refinancing. Senegal has both the resources and the backing. The key challenge will be to convince them of the project’s credibility and the country’s ability to manage its debt. Other countries, such as Benin, have managed similar situations successfully. Benin faced a major debt wall but refinanced it successfully, thanks to the Finance Minister’s skill, economic diplomacy, and presidential networks. Its credit rating remained stable despite those concerns. There’s no reason Senegal can’t do the same, provided it makes a convincing case.

What about Côte d’Ivoire, which also faces major deadlines, with about 20% of its Eurobonds maturing over the next two years?

The same logic applies. It will hinge on their ability to win over investors, the economic strategy they present, and the quality of their negotiations. Finance isn’t just about numbers; it’s also about persuasion and leadership.

What do events like the Structured Finance Forum contribute to the ecosystem?

They’re essential. When people work in isolation, they tend to replicate what has worked elsewhere. Forums like this allow them to share ideas, test concepts, and push new solutions forward. Not every idea will take off, but the ones that do strengthen and broaden the market. It’s like a potluck: everyone contributes, and the result is all the better for it.

How do you view the prospects for the coming years?

We see three main trends emerging. First, continued growth in both the number and size of securitization deals. Second, the introduction of other structured finance instruments, particularly project finance. And third, the rise of innovative finance — from crypto assets and FinTech to new asset classes tied to essential needs like education, water, and telecoms. West Africa is still at an early stage, but the foundations are already in place to build a deeper, more diversified market that better serves the population.

Interview in French by Fiacre E. Kakpo,

Adapted in English by Mouka Mezonlin