As other JCAP economies, WAEMU is facing large needs to modernize and expand its real estate markets, including for affordable housing that remains dominated by self-construction and for which access to finance is limited. Yet real estate markets are essential to develop economic urban growth, create jobs and provide social safety. What role could capital markets play, notably through those three promising avenues: (i) secondary mortgage markets, (ii) REITs, and (ii) green housing bonds? What are the key success factors?
WAEMU’s non-sovereign capital markets count 45 listed companies, 16 outstanding corporate bonds and 3 securitizations. While this number has been relatively static in the past years, there are trends emerging that may provide an opportunity for growth. Among others, SMEs, financial institutions and infrastructure companies are searching for ways to (further) finance themselves via the capital markets. But what are the best instruments to scale those trends? And what regulation needs to be in place?
SME’s play a critical role in global economic development. They are the engines of innovation and new job creation and yet they find it difficult to obtain financing. Could capital markets be part of the solution? How would that look like?
Capital markets bring significant advantages to the banking sector, including by reducing their risk exposure, improving their capital structure, and providing them with an ability to expand their product and business lines. How much of these advantages do WAEMU’s bank already use? Which new opportunities can be explored?
SOEs remain one of the largest infrastructure providers in the world. At the same time, they have increasingly struggled to secure the long-term and largevolume funding required to finance their projects. What role can debt and equity markets play? And what should be the next steps for WAEMU?
Given the challenges and opportunities, what are the three key priorities for the market? What concrete actions need to follow and what can we expect for 2020?