For many African businesses, access to financing remains a major challenge. Traditional banking channels, while common, often present obstacles: strict conditions, high interest rates, and difficult-to-provide guarantees. In this context, the Regional Stock Exchange (BRVM) positions itself as a credible and innovative alternative for raising funds without going through a bank.
Why look for alternatives to banks?
Banks play a fundamental role in financing the economy, but they cannot meet all needs. SMEs, in particular, sometimes find themselves excluded from traditional banking channels due to their size, level of formalization, or limited financial history.
Using the financial market not only allows you to diversify your sources of financing, but also to strengthen the company's visibility, credibility and governance.
The solutions offered by the BRVM
1. The issue of bonds and/or treasury bills
The BRVM allows companies to issue bonds or commercial paper, i.e., debt securities, to a wide audience of investors. This solution makes it possible to mobilize significant resources over short or long periods and under conditions that are often more flexible than those of bank credit.
Examples: many African companies have successfully raised funds via bonds listed on the BRVM.
2. The growth compartment
The BRVM has set up a compartment dedicated to SMEs/SMIs : the growth compartment . It allows medium-sized companies to access financing by issuing shares or bonds while benefiting from supervision adapted to their profile. This compartment requires relaxed entry conditions, which facilitates access to the stock market even for structures in the development phase.
3. The securitization program
The BRVM also offers the possibility of implementing securitization , via the bond market. This mechanism allows a company to transform future assets (receivables, rents, contracts) into immediate liquidity.
It is a particularly effective lever for financial institutions, cooperatives or companies with regular financial flows.
4. Risky mutual funds
Venture mutual funds allow companies to indirectly access financing sources through equity investments. These funds inject capital into promising companies in exchange for a share of the equity, without requiring immediate repayment as with a loan.
Benefits of the BRVM for businesses
- Less dependence on the banking system
- Access to greater capital
- Improving governance and transparency
- Strengthening brand image and credibility
Raising funds without going through a bank is no longer a pipe dream for WAEMU businesses. Thanks to the BRVM, several alternatives exist for accessing financial markets and mobilizing sustainable resources. To fully benefit from these opportunities, businesses must engage in a process of formalization, transparency, and strategic structuring. The BRVM, for its part, continues to evolve to become a true catalyst for financing the regional economy.
