A functioning bond market is vital for participants in developing economies to secure long-term funding and fuel their growth. However, most African local currency bond markets remain underdeveloped and are dominated by public bond issues (government paper). This makes it difficult for private sector companies to raise funds through bonds or through other financial instruments available in many other emerging markets.
A conducive business environment, the establishment of legal and regulatory frameworks and transparent management structures are key to facilitate the development of African bond markets. This guide, prepared for the ALCB Fund, focuses on legal considerations for corporate bond issues within the Economic and Monetary Community of Central Africa (EMCCA) and the West African Economic and Monetary Union (UEMOA).