A development credo since independence, Côte d’Ivoire still faces the challenge of financing its agriculture and industrialization in this sector, which accounts for 62% of its non-oil exports and employs almost 50% of the working population. In this respect, a major milestone has just been reached on Tuesday November 23, 2021 in the conference room of the Noom Hôtel Abidjan-Plateau, with for the first time in Côte d’Ivoire and on our continent, the launch of a Warehousing Receipt securitization program. In this case, Sirius Capital and its partner Maghreb Titrisation gave a presentation on this mechanism, which was followed by the signing of securitization, placement and warehouse receipt management agreements between the Autorité de Régulation des Récépissés d’Entreposage (ARRE), Sirius Capital and Maghreb Titrisation. Sirius Capital and its partner took part in the exercise, convincing their audience of the merits of this innovative and novel financing vehicle. Financial securitization is a technique whereby illiquid assets are transformed into securities that can be traded on capital markets through their permanent or temporary transfer to a securitization fund.

Securitization has thus emerged as an ideal tool for achieving ARRE’s objectives by financing agricultural producers via the regional capital market. The securitization mechanism is all the more appropriate as it will act as a precursor to the imminent establishment of the Agricultural Commodities Exchange (BPMA). In addition, ARRE’s institutional and operational involvement in the securitization project and the regulatory nature of the SRE (Système de Récépissé d’Entreposage) will further reassure investors and represent major assets for the success of the Project. Under the leadership of Managing Director Ismaël Cissé, Sirius Capital is once again demonstrating its commitment to providing innovative financing solutions for the continent’s development. Ultimately, this impact project will raise several hundred billion FCFA to improve living conditions for producers, reduce post-harvest losses which affect 30% of agricultural production, and facilitate the implementation of storage infrastructures to reach the overall storage capacity of 500,000 tonnes targeted by ARRE, which will create around 1.9 million jobs in the process. Sirius Capital is a financial advisory, management and intermediation company (SGI) approved on the UEMOA market by the Conseil Régional de l’Epargne Publique et des marchés financiers (CREPMF) and by the Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO) as an Intermédiaire en Opérations de Banque. Sirius Capital supports and advises companies and institutions through a complete range of financial services: investments, strategic advice and capital raising.

See the article here