Southern Africa is poised to benefit from a groundbreaking financing mechanism designed to unlock funding for high-impact projects across the continent. The multi-originator synthetic securitisation transaction (MOSST), initiated by the African Development Bank (AfDB) in collaboration with institutional investors and the Development Bank of Southern Africa (DBSA), promises to bolster development finance institutions’ capacity while offering lucrative opportunities for private sector investment.
Signed during the 2024 Africa Investment Forum Market Days in Rabat, Morocco, the MOSST platform is a revolving, evergreen vehicle aimed at de-risking the balance sheets of participating financial institutions. By transferring mezzanine tranche credit risks to private investors and retaining senior tranche risks, the initiative is expected to catalyse additional lending capacity for transformative projects across Africa.
AfDB President Akinwumi Adesina hailed the signing as a significant milestone in the bank’s 2023–2032 strategy, which emphasises private capital mobilisation and de-risking to address Africa’s financing gaps. He noted, “The proposed multi-issuer securitisation vehicle we are shaping exemplifies how collaboration between multilateral development banks and private sector investors can unlock transformative capital flows.”
The platform is designed to feature a reference portfolio worth between $1.5 billion and $2 billion, diversified across sectors, geographies, and risk profiles. This includes loan and guarantee exposures that align with the AfDB’s and DBSA’s strategic priorities in climate finance, infrastructure, and financial intermediation. The initiative reflects a well-diversified pool of assets aimed at attracting a broad spectrum of investors.
DBSA CEO Boitumelo Mosako highlighted the importance of collective efforts between multilateral development institutions, asset managers, and institutional investors to scale up financing for Africa’s growth. Similarly, Newmarket’s managing director, Molly Whitehouse, expressed enthusiasm about extending the success of past collaborations such as the Room2Run transaction through the SST platform.
