For many African businesses, access to financing remains a major challenge. Traditional banking channels, while common, often present obstacles: strict conditions, high interest rates, or difficult-to-provide collateral. In this context, the Regional Stock Exchange (BRVM) is positioning 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 funding, but also to strengthen the visibility, credibility and governance of the company.
The solutions offered by the BRVM
1. Issuance of bonds and/or treasury bills
The BRVM allows companies to issue bonds or commercial paper, i.e., debt securities, to a wide range of investors. This solution makes it possible to raise significant resources over short or long periods and often on more flexible terms than bank loans.
Examples: many African companies have successfully raised funds through bonds listed on the BRVM.
2. The growth compartment
The BRVM has established a dedicated segment for SMEs : the Growth Segment . This segment allows medium-sized companies to access financing by issuing shares or bonds while benefiting from support tailored to their profile. This segment has simplified entry requirements, making it easier for even developing companies to access the stock market.
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 cash.
This is a particularly effective lever for financial institutions, cooperatives or companies with regular cash flows.
4. Venture Capital Funds
Venture capital funds allow companies to indirectly access financing through equity investments. These funds inject capital into promising companies in exchange for a share of the equity, without requiring immediate repayment as in the case of a loan.
Advantages of the BRVM for businesses
- Less dependence on the banking system
- Access to more capital
- Improved governance and transparency
- Strengthening brand image and credibility
Raising funds without going through a bank is no longer a pipe dream for businesses in the WAEMU. Thanks to the BRVM (Regional Stock Exchange), several alternatives exist for accessing financial markets and mobilizing sustainable resources. To fully benefit from these opportunities, businesses must commit to a process of formalization, transparency, and strategic structuring. The BRVM itself continues to evolve, becoming a true catalyst for financing the regional economy.
