Ouagadougou: The Burkinabe government has given the green light for the establishment of a banking holding company named "Yenenga Holding" with a capital of 10 billion. This new entity will see the State holding 51% of the shares, while 49% will be distributed among various subsidiaries, including three banks and a reinsurance company. The main objective of this move is to enhance the management of public resources, as highlighted in the minutes of the Council of Ministers.

According to Burkina Information Agency, the Minister of Economy and Finance, Aboubakar Nacanabo, detailed the distribution of the 49% stake held by state entities. The allocation includes 10% each for the National Social Security Fund (CNSS), the Autonomous Pension Fund for Civil Servants (CARFO), and the Burkinabe National Lottery (LONAB). Additionally, 5% will go to the Burkinabe Fund for Economic and Social Development (FBDES) and 4% to the National Hydrocarbons Company (SONABHY).

Minister Nacanabo emphasized that the creation of Yenenga Holding will lead to improved management of public resources held by banks. Furthermore, it ensures that bank resources are allocated to finance key projects, particularly within the industrial sector.

The Minister also noted that the State currently holds shares in approximately fifteen banks, four insurance and reinsurance companies, a microfinance company, and several other financial institutions. However, it maintains a majority stake in three banks and one reinsurance company.

The concept of a holding company involves a parent company owning shares in other companies, known as subsidiaries, to exert control over them. This structure is often referred to as a portfolio company.