Equity or Financial Debt?
At the beginning of my investor life, I wondered why company leaders sometimes finance their projects with shareholders' money and sometimes with creditors'.
Read moreActualités, analyses et tendances du secteur financier africain
Key concepts and glossary
A Special Purpose Vehicle (SPV) is a legal entity created specifically for a given project. It isolates project risks from the company's other activities and provides a dedicated financing structure for investors. The SPV is an essential tool in complex project financing, particularly in infrastructure, energy and mining sectors.
Project Finance is a financing method where lenders provide funds based on the project's future cash flows rather than shareholder creditworthiness. This mechanism makes it possible to finance important projects without impacting the sponsors' balance sheet. It is based on rigorous risk analysis, optimized financial structuring and strong guarantees of future project revenues.
Public-Private Partnerships (PPP) are collaborations between the public sector and private companies to design, finance, build and operate infrastructure or services of public interest. This model allows governments to benefit from private expertise while controlling costs and timelines. PPPs are commonly used for roads, hospitals, schools, power plants and distribution networks.
Due Diligence is a comprehensive audit process conducted before an investment or financing. It assesses the financial, legal, technical, environmental and tax aspects of a project. This rigorous review identifies risks, validates project viability and structures necessary guarantees. Due Diligence is a critical step to protect the interests of all stakeholders.
Finance
At the beginning of my investor life, I wondered why company leaders sometimes finance their projects with shareholders' money and sometimes with creditors'.
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Finance
An SPV (Special Purpose Vehicle) is a separate legal entity created to carry a specific project, thus isolating the financial risks (bankruptcy-remote) from the parent company.
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Finance
Let's explore the fundamentals of high finance and its importance in the African business world.
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Financement
Public funding represents a major opportunity for African businesses.
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Investissement
Discover the best investment strategies for the African continent.
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