INVESTMENT STRUCTURATION

Partnership program for financial structure - Good Financial Governance

Good governance of public finances is defined by the legitimate use of power and authority in the management of financial resources of a country with integrity, transparency, accountability, equity and results orientation to promote inclusive development. FICA considers that the principle that lies at the heart of reforms to finance governance of African states should be the strengthening of functional internal and constitutional account ability systems.

We have developed in collaboration with our financial partners, financial tools for structuring investments in Africa. The financial partners engineered a conceptual model based on six specific areas for project financing in Africa;

Financial partners:

  • Advise and structure all projects supported by the FICA

  • Select the relevant industrial and financial partners for retained/selected projects for member States that have joined and are affiliated with the Organization, and approved the Charter of the FICA.

A.        Segmentation of Projects:

FICA operate sequentially; prioritized projects are segmented. Each projectis the subject of dedicated suitable funding and in particular as regards the amount, guarantee, term and interest rate.

B.        Project Selection:

The selected projects must correspond to the inclusive development and/or industrialization strategy of member States; they must be selected carefully with regards profitability & benefits they could offer to the country. Thus the induced profitability of such projects can offer important guarantees for creditors.

C.        Governance and Role of Funding:

African member States retain full governance of projects & fund. FICA and financial partner’s, create collateral tools guarantee, via the quality of their strategic assets funds & loans granted in the context of the completion of each project.

D.        Funding of Projects:

The segmentation of projects should enable to select industry partners on extremely precise specifications base including funding component.

F.         Guarantees Funding:

Guarantees brought by the induced profitability of each of the selected projects.

G.        Bottom of Staffing:

The assets brought by African states must be tangible and evaluated according to international standards:

▪           Identification and constitution as portfolio

▪           Joint-venture agreements to be concluded with reputable companies.

▪           Repayment of the portion allocated to African States and the Fund evaluation firms specializing in this area.