Foreign exchange market

Better than expected economic data boosted the Euro and the Yen and weighed on the Dollar. Since the beginning of the month, the greenback has lost some of its gains, even if it remains up 2.7% against the euro since the beginning of the year. The euro was supported after the release of better than expected retail sales figures but these figures will have to be confirmed by the ZEW index. The yen benefited from stronger producer prices. The pound reacted little to English GDP, which nevertheless came out better than expected at -7.8% against a consensus of -8.3%. The dollar against the Swiss franc and is back on the last market low at 0.9215 after several sessions of decline which also corresponds to a 38.2% Fibonacci retracement.

Cryptocurrency

Bitcoins left on a digital wallet are not taken into account in the tax calculation. In addition, simple exchanges between cryptocurrencies, for example between bitcoin and ether, are also not subject to tax. The tax administration requires cryptocurrency holders to declare their earnings along with their other income in the annual declaration. For the declaration of 2021, it is for tax residents in France to declare the capital gains for the year N-1, i.e. those realized from January 1, 2020.

In addition, the leader of cryptocurrencies once again crosses the threshold of 60,000 dollars. The price of bitcoin has shown renewed interest from investors. The value of bitcoin has risen 116% since its low of January 4 at 27,734 dollars, benefiting in particular from the announcement by the American president, Joe Biden, of a recovery plan of 1,900 billion dollars, which prompted investors to buy cryptocurrencies to protect themselves against a possible inflationary surge.

Money Market

The Recovery Bonds (OdR) issuance program has enabled a significant overall raising of 578.523 billion FCFA in two months. These auctions will support the economic recovery plans of the WAEMU States. In more detail, 141.548 billion FCFA were mobilized over the 3-year maturity, 193.016 billion FCFA over 5 years and 243.958 billion FCFA over 7 years. In terms of volume mobilized by issuer, Mali, Côte d'Ivoire and Burkina represent respectively 131.798 billion FCFA, 110.020 billion FCFA and 88 billion FCFA. Togo and Senegal come respectively in fourth and fifth position for having mobilized 84 and 82.205 billion FCFA, Niger in sixth position with 66 billion FCFA raised and Guinea Bissau in last position with a mobilized amount of 16.500 billion FCFA. Only Benin has not yet made any issues within the framework of the Recovery Bonds issuance program.

The General Directorate of Treasury and Public Accounting of Guinea-Bissau raised on April 13, 2021 on the financial market of the West African Monetary Union (WAMU) an amount of 23.100 billion FCFA (34.650 million euros) at the term of its issue of recovery bonds (ORD) from the Treasury with maturities of 3 and 5 years. Organized in partnership with the Agence UMOA-Titres based in Dakar, Guinea Bissau's first ORD dates back to March 9, 2021 with an amount of 16.500 billion FCFA raised for the same maturities.

At the end of its issue of assimilable treasury bonds (BAT) with a maturity of 182 days, the Public Treasury of Senegal auctioned on April 9, 2020 an amount of 55 billion FCFA on the financial market of the West African Monetary Union (UMOA) . The issuer auctioned 50 billion FCFA. Investors' overall bids amounted to 139.550 billion FCFA, representing a coverage rate of the amount put up for auction of 279.10%. These funds will enable the country to cover the financing needs of the State budget.

The West African Development Bank (BOAD) has just issued an inaugural bond of 750 million euros over 12 years, or 492.85 billion FCFA. This transaction represents BOAD's first euro transaction, and the first sustainable bond from an African issuer. The inaugural sustainable bond is a historic transaction, not only for BOAD, but also for the Sub-Saharan Africa region as a whole. According to officials of the institution, this operation reflects the status of a rapidly developing region, of the West African Economic and Monetary Union (UEMOA), as well as the key role of BOAD in promoting this growth.

Stock market

The WAEMU Regional Stock Exchange (BRVM) has distinguished 12 best players in the regional financial market of the West African Economic Monetary Union (UEMOA), including three special prizes and an honorary prize. For this second edition, eight companies were rewarded with this prize of excellence in different categories, in particular Sonatel in the best listed company category, Société Générale Capital Securities West Africa, best management and intermediation company (SGI) during that the prize for the best UCITS management company (SGO) was won by SOAGA. The best bond issuer went to the Public Treasury of Burkina Faso, the best BTCC to Société Générale Côte d'Ivoire, the best SME in the Elite Program to Neurotech SA, the best institutional investor to IPS Caisse nationale de prévoyance sociale (IPS -CNPS) and the prize for best financial media awarded to Financial Afrik.

Apart from regional financial market players, special BRVM awards were given to the Minister of State, Minister of Agriculture and Rural Development, Kobenan Kouassi Adjoumani, to the Minister of Economy and Finance of Benin, Romuald Wadagni and the President of the Regional Council for Public Savings and Financial Markets (CREPMF), Mamadou Ndiagne. A posthumous honorary prize was also awarded to the late Hamed Bakayoko, former Prime Minister of Côte d'Ivoire who, during his lifetime, had accepted the sponsorship of this ceremony.

The shares of Société des Rubbers de Grand-Beréby (SOGB), an agro-industrial company listed on the WAEMU common financial market (BRVM) are on the rise. She announced that she plans to distribute a dividend of 6 billion FCFA. This decision consolidates the profit margins of its shareholders, and comes on top of a capital gain of more than 64% over 12 months.

The agricultural sector listed on the BRVM posted contrasting performances on Friday April 9, 2021. The agricultural sector is unbeatable at the BRVM. Its index there has risen by 31% since the start of the year, and by 71.2% over the last 12 months. A potential gain more attractive than the dividend itself.

The Bloomfield Investment Corporation stock market analysis report indicates that the Regional Stock Exchange ended the week up with 124.63 points for the BRVM 10 index (+0.88%) and 141.82 points for the BRVM Composite index (+0.43%).

The main European stock markets ended slightly down. In Europe, the week was driven by publications from LVMH, L'Oréal and Publicis. According to IBES data from Refinitiv, earnings of companies in the US S&P-500 are expected to have jumped 25% in the first quarter year on year and those of the Stoxx 600 by 47.4%.

Raw materials

The weekly report from the US Energy Information Agency (EIA) points out that US crude inventories fell by 5.9 million barrels (MB), to 492.4 MB, as of April 9. Oil prices recorded a timid advance. Investors returning to their main subject of attention, the balance between supply and demand for black gold, have been undermined by the evolution of the Covid-19 pandemic… hope is gradually returning to the market black gold.

Poor harvests in Pakistan affect the price of cotton. The increase in the price of freight and the increase in the price of oil modify the price of synthetic fibres. Faced with this rise in the price of raw materials, the textile industry is threatened. But the outlook is good.

The United States Department of Agriculture (USDA) announces that cotton production in Mali could rebound by 87% if the conditions, in particular rainfall and low parasitic pressure, are met. Exports would rise to 2.26 million bales while stocks would fall by 4%. Production in Burkina Faso should rise by 8% to 985,000 bales with areas up by 6% to 590,000 hectares. For the fourth consecutive year, Côte d'Ivoire should again reach a new production record in 2021/22 at 1.1 million bales, up 10%.

Bank and insurance

Société Générale Côte d'Ivoire presented its financial results for the 2020 financial year to its shareholders on April 13, 2021. The management committee informs that Société Générale's subsidiary in Côte d'Ivoire has demonstrated excellent resilience in its results despite the major disruptions in global economic and financial activity in 2020 linked to the Covid-19 pandemic. The net banking income shows 164 billion CFA francs and the gross result is 83.33 billion CFA francs.

At the end of the 2020 financial year, the Net Banking Income (NBI) of Coris Bank International increased by 26.9% to stand at 74.0 billion FCFA. In the same way as the NBI, the Net Result, at the end of the 2020 financial year, shows a profit of 34.4 billion FCFA, thus exceeding the objectives for the period. These are among other points highlighted by the bank's management report.

The Investment and Development Bank of the Economic Community of West African States (EBID) finances poultry enterprises in Guinea for the production of 25 million chickens a year. This funding should serve associations of Guinean poultry companies as part of the efforts of the Conakry authorities in favor of agropastoral activities.

Governance

The provisional results of Benin's presidential election, which took place on Sunday April 11, 2021, give Patrice Talon a second term. The Talon-Talata duo won by knockout with 86.37% of the votes cast against 11.29% for the Soumanou Hounkpè duo and 02.35% for the Kohoué Agossa 2% tandem.

On April 14, 2021, in accordance with the recommendations of the last Summit of Heads of State and Government of the Union, the current President Roch Kaboré proceeded to the appointment of the new UEMOA Commissioners. Thus, the Senegalese Abdoulaye Diop is the new President and Pr Kako Nubukpo has moved from the status of Advisor to that of Commissioner. The other members of the commission are Jonas Gbian (Benin), Filiga Miche lsawadogo (Burkina Faso), Paul Koffi Koffi (Ivory Coast), Mamadù Serifo Jaquite (Guinea-Bissau) Lassine Bouare (Mali), Mahamadou Gado (Niger) .

Financial crimes

The National Financial Information Processing Unit (CENTIF- Mali) notes more than 124 billion CFA francs suspected in crime, fraud, embezzlement and terrorist financing in 2019. According to the CENTIF's 2019 report, there are 62 declarations of suspicious transactions that CENTIF has recorded. Of these, 56 come from banks, 5 emanate from the decentralized financial system and one denunciation was made by a non-financial business and profession. The total amount suspected at this level is 12,643,419,720 FCFA. In addition, expatriates of Asian origin illegally transferred 111,388,566,776 FCFA out of the country. Which therefore makes a total of 124,031,986,496 FCFA relating to fraud, embezzlement, financing of terrorism, multiple embezzlement.

French justice has seized property of the "Bongo clan" estimated at 152 million euros in the context of the "ill-gotten gains" case. This case concerns immovable and movable property and other objects of value located in Europe in particular and whose funds having enabled their acquisition would be the product of embezzlement of public funds.

In the Council of Ministers this Thursday, April 15, 2021, the President of the Republic of Guinea, Alpha Condé insisted on the coherence and complementarity which must characterize the activities of the structures involved in anti-corruption operations. He invited to define the procedures and the modalities by which the Minister Counselor in charge of the award of Public Contracts could issue reasoned opinions on the quality and regularity of contracts relating to public orders, in compliance with the provisions of the Public Contracts Code. . The Head of State invited the Ministers concerned to work on the reform of structures for the fight against corruption with a view to making them more effective.

Regional growth

From 9.688 billion FCFA, the capital of the Regional Mortgage Refinancing Fund of UEMOA (CRRH-UEMOA) increases to 9.888 billion FCFA. According to the information relayed by Togo First, the financial institution based in Lomé, to carry out this operation to increase its capital, issued 20,000 new shares with a nominal value of 10,000 FCFA, fully paid up to thus mobilize 200 million FCFA. With this injection of assets, CRRH-UEMOA should have more leeway to make new investments or develop its mortgage refinancing activity.

During the same period, the Regional Council for Public Savings and Financial Markets (CREPMF) launched a workshop to validate the conclusions of the study on the reform and structural transformation of the regional financial market. The structural transformation of the Regional Financial Market (MFR) was initiated through the 2014-2021 Strategic Plan, but and above all by the political will of the high authorities of WAMU who, on March 24, 2016, adopted a series of proactive reforms to accelerate its development.

Deloitte's first African Financial Industry Barometer takes stock of the African financial industry in the face of the economic consequences of the pandemic. In a context of health crisis and increased competition from new players, financial institutions are confirming their desire to transform their business model, governance and risk management capabilities. The African financial industry shows a 56% increase in attractiveness despite the recent departures of international groups. The survey reveals that the top three priorities for financial institutions over the next 12 months are: digitization, operational efficiency and mastering emerging risks.