The African Development Bank Group (AfDB) has taken a major step towards reshaping Africa’s development finance architecture by appointing Société Générale as lead advisor to its newly established multi-originator integrated securitization platform (SST platform). The agreement, signed on 26 November during the market day of the 2025 African Investment Forum in Rabat, marks the beginning of an innovative financial mechanism aimed at unlocking the lending capacity of African development institutions, mobilizing private capital and strengthening their balance sheets.
Building a new phase on the Room to Run Legacy
The SST platform is the next chapter in AfDB’s innovative Room to Run (R2R) initiative, which has delivered three successful Significant Risk Transfer (SRT) transactions since 2018. These early deals, widely regarded as groundbreaking in the field of multilateral finance, freed up regulatory capital and enabled the AfDB to scale up financing for high-impact projects across Africa.
The new SST platform operates as a rotating, evergreen, scalable vehicle, allowing multiple originators to transfer credit risk from their portfolios while maintaining lending capacity. This structure aims to create predictable long-term efficiency for development finance institutions (DFIs). Many DFIs are facing increasing pressure on their capital adequacy ratios as infrastructure, climate, and social development needs expand.
Strategic partnership backed by global expertise
Société Générale, globally recognized for its leadership in SRT and structured finance advisory, will spearhead the design and structuring of the platform. Its roles include:
Developing the financial and operational architecture of the SST platform
Supporting investor engagement through detailed modeling and analysis
Advice on regulatory alignment and best practice documentation
Help build a harmonized credit assessment framework
Pascal Olivier, senior advisor for asset-backed solutions at Société Générale, said the partnership is a milestone in advancing sustainable and scalable financing.
“Société Générale is pleased to leverage its deep expertise in risk transfer solutions to advise the African Development Bank, DBSA and other development institutions on the creation of a ground-breaking multi-originator integrated securitization platform. This is an important milestone in promoting sustainable finance and attracting private investment for inclusive growth across Africa.”
USD 2 billion initial reference portfolio
The first phase of the SST platform will house a $2 billion reference portfolio that combines the following assets:
african development bank
Development Bank of Southern Africa (DBSA)
Other regional and international DFIs, pending participation
The portfolio will span multiple sectors, reflect diverse geographic exposure, include a diverse risk profile, and have a structure designed to attract retail investors seeking diversification, transparency and risk mitigation opportunities.
Over time, the platform will introduce features such as:
Standardized publication documents
Unified credit assessment methodology
Shared Special Purpose Vehicle (SPV) Structure
Such harmonization is expected to improve efficiency, reduce transaction costs, and expand participation in the broader African and global DFIs.
Unleash your ability to finance high-impact projects
During the signing event, AfDB’s Senior Director of Syndication, Client Solutions and Africa Investment Forum, Max Ndiaye, highlighted the platform’s potential as a catalyst.
“The SST platform is expected to be a catalyst for expanding financing space for high-impact projects and is positioned as a cornerstone of Africa’s efforts to expand financing solutions that drive sustainable growth across the continent.”
By transferring mezzanine and senior risk exposure to retail investors, DFIs can reallocate capital to new priorities such as:
Renewable energy and climate resilience
Transportation/logistics infrastructure
water safety and hygiene
Transforming agriculture and food systems
Digital connectivity and regional integration
Expanding this capacity is essential as Africa faces increasing demographic pressures, climate vulnerabilities and persistent infrastructure deficiencies.
Alignment with AfDB’s long-term strategy
This initiative supports the African Development Bank Group’s 10-year strategy, which prioritizes sustainable growth, private sector development and capital optimization. This is in line with President Sidi Ould Tah’s Four Fundamentals, which emphasize accelerating the mobilization of private capital on a continental scale.
As multilateral institutions increasingly adopt innovative balance sheet optimization tools, the SST platform positions Africa at the forefront of global development finance reform.
Towards a new model of development finance for Africa
The SST platform is expected to redefine the way projects are financed in Africa by linking structured finance with development needs. The multi-originator structure enables collaboration between DFIs, lowers entry barriers for private institutional investors, and sets the stage for a more liquid and transparent African credit risk market.
The platform will also serve as a test case for broader reforms within global development finance, including calls for:
More efficient use of balance sheets by multilateral development banks
Greater risk sharing with private capital
Scalable financial mechanisms for climate change and infrastructure financing
As Africa faces the twin challenges of growing demand and shrinking fiscal space, SST platforms could become central to Africa’s long-term financing architecture.
