Foreign exchange market

The US currency is supported by its safe haven status as the resumption of Covid-19 infections weighs on the outlook for global growth. Meanwhile, higher rates would make the European currency more attractive to forex traders.

Cryptocurrency

The cryptocurrency leader crashed again last Tuesday. As regulators continued to push for tighter scrutiny of cryptocurrencies, bitcoin fell to its lowest level in nearly a month, dropping below $30,000. Over the weekend, the world's largest cryptocurrency rallied to 32,515.20 US Dollar.

Money Market

The recovery bond issuance program has already enabled WAEMU states to raise, at the end of June, a total amount of 1,802.93 billion FCFA, according to official data. This program should contribute to the momentum of the economic recovery efforts of the States of the WAEMU zone. In addition, Benin issued for the first time international bonds dedicated to the financing of projects with a strong impact on the achievement of the SDGs (United Nations Sustainable Development Goals). The country mobilized 328 billion CFA francs, the equivalent of 500 million euros. The repayment deadline is for 2035.

In the CEMAC zone, the government of the Democratic Republic of Congo (DRC) received on Tuesday an amount of 3.59 billion FC, from treasury bonds put up for auction.

Stock market

The Regional Stock Exchange (BRVM) distinguished itself on the regional market by an increase not recorded for 2 years. A performance which is none other than the result of the work done by the Managing Director of the BRVM, Dr. Edoh Kossi Amenounve. The regional stock market recorded its best daily performance over the last four months on Monday, July 19, 2021. Indeed, the BRVM Composite rose by +2.24% to 165.14 points, a level it had no longer reached. for more than two years. This beautiful surge in the main market index is justified on the one hand by the strong enthusiasm of investors for the market with regard to the balance of variations, which has 24 stocks up against 9 down. And on the other hand by the progression of +4.48% to 14,000 FCFA for SONATEL, the juggernaut of the market which represents more than 28% of the market capitalization. In total, 169.8 million FCFA were traded during this trading session.

The Central African Stock Exchange (BVMAC) has recorded the first listing of La Régionale d'Epargne et de Crédit SA. All of the securities issued on July 16, 2021 by "LA REGIONALE" on the primary market, i.e. sixty-one thousand six hundred and thirty (61,630) shares, were admitted to "compartment A" of the BVMAC permanent listing. . This introduction brings to five the number of companies constituting the equity market, in this case, SEMC, SAFACAM, SOCAPALM and SIAT Gabon. “The advantages for an IPO are multiple. ''La Régionale SA'' is the first savings and credit institution listed on the BVMAC.

Raw materials

After having derailed the agreement at the beginning of July, the United Arab Emirates obtained an increase in their production quota from next May. The thirteen member countries of OPEC and their ten allies have agreed on an increase of 400,000 barrels per month in their oil production from August until September 2022. They have agreed to gradually loosen the constraints of production that they had imposed on themselves last year to stem the fall in oil prices following the pandemic. Meanwhile, Oil is rising despite rising US inventories and the Delta Variant. The two benchmark contracts posted a strong increase of more than 4%.

Côte d'Ivoire has launched a soybean cultivation project to be developed on 450 hectares in the Bafing and Kabadougou regions (northern Ivorian), particularly hampered by the Covid-19 health crisis. This project should allow a massive production of soybeans within the framework of food security and create jobs. It also provides for the rehabilitation of all the seed farms, tracks leading to the plots, the construction of seed conservation and quality control infrastructure (analysis laboratory), the identification of new land for the extension of the project.

Benin is significantly increasing its production and exports of organic soybeans. According to the European Union (EU) Commission's 2020 report on the import of organic products 2020 recently published, the country was ranked 6th in the world for exporting organic soybeans to Europe. During the last crop year, Benin exported 6,300 tons of organic soybeans to Europe. Compared to the 700 tonnes exported in 2019 to the same destination, this new data shows a growth of 758.5% recorded by the country in terms of the export of organic soybeans to the Schengen area.

Companies

Togo has launched the Togolese Facility for Acceleration and Innovation (FTAI) endowed with 265 million FCFA per year and intended for young Togolese entrepreneurs. Thus, start-ups and incubators will be able to benefit from financial support through this fund, the aim of which is to contribute more to the creation of businesses and jobs for young people.

The National Telecommunications Company of Senegal (Sonatel) recorded strong performances in the first half of 2021. The consolidated turnover of the group, which includes subsidiaries in Mali, Guinea, Guinea-Bissau and Sierra Leone, increased established at 642 billion FCFA, up 9.3% in the first half of 2021 compared to the same period of 2020. At the end of the period under review, net income increased by 32.2%, standing at 118 9 billion FCFA against 89.9 billion FCFA in the first half of 2020.

Bank and insurance

The African Development Bank (AfDB) has granted a line of credit to the Mauritanian Bank for Trade and Industry (BCI) to support small and medium-sized enterprises in the country. With the granting of this financing, the AfDB will allow the BCI to “have liquidity in foreign currencies”. Also, the AfDB's African Natural Resources Center has launched a first financial modeling project for the extractive sector (FIMES). The objective is to strengthen the mobilization of domestic resources, institutional capacities and economic resilience in countries in transition.

The Board of Directors of the World Bank has approved the disbursement of $470 million, or 261 billion FCFA from IDA resources. This support will finance the implementation of the Lomé-Ouagadougou-Niamey (LON) road corridor project. 1,065 km away, this road infrastructure should contribute to reducing transport times for goods imported and exported from the port of Lomé. In fact, border crossing times for trucks will be reduced by 62% between Togo and Burkina Faso, and by 54% between Burkina Faso and Niger.

The Vista group becomes the first banking group in Guinea. It acquired BNP Paribas' majority stake in the capital of the International Bank for Commerce and Industry of Guinea (BICIGUI). This acquisition expands Vista's banking network in Guinea, Sierra Leone, Gambia and Burkina Faso. Entering under the control of Vista Bank, BICIGUI became Vista Guinea. Vista customers will benefit from its highly customer-centric approach and technology investments.

A delegation from the Association of Insurance Companies of Côte d'Ivoire (Asaci) led by Mamadou Koné, its new president, was received in audience by the Director General of the Treasury and Public Accounting on July 21, 2021. According to Mamadou Koné, the action plan will revolve around four major axes. Among other things, working on the scale of the market, ensuring that tics can contribute to the development of insurance. For the proper implementation of this program, Mamadou Koné said he wanted to count on the support of the regulator to explore the pockets that remain untapped in the insurance sector.

Governance

“Following the historic success” of the round table in Paris on the mobilization of funding for integration projects, personalities from the Cémac zone were decorated on July 20 in Brazzaville. They are the Minister of Economy, Ingrid Olga Ghislaine Ebouka-Babackas, the President of the Central African States Development Bank (BDEAC), Fortunato Ofa Mbo Chama, the Permanent Secretary of the Economic Reform Program and of the sub-region (PREF-CEMAC), Michel-Cyr Djina Wembou, the Congolese Minister of Economy, Planning, Statistics and Regional Integration, Roland Marc Lontchi Tchoffo, Director of Statistics to the CEMAC commission, Jean Paterne Megne Ekoga, director of operations of BDEAC and Michel Eric Amanda, in charge of programs and communication of PREF-CEMAC.

Financial crimes

The High Authority for Good Governance has just published the statistics of its actions in the context of the fight against corruption in Côte d'Ivoire. The statistics presented during a press briefing by its secretary general reveal 473 people charged with corruption, illicit enrichment and money laundering.

As part of the vast clean hands operation launched by President Ouattara, the CEO of the National Office for Sanitation and Drainage (NADO) found himself in trouble related to corruption. The management of the director of the ONAD has undergone extensive audits which have revealed "serious suspicions of embezzlement of public funds". It appears that the director of the ONAD has proven affinities with the minister Moussa Sanogo, which would have enabled him to manage some dubious affairs. The prosecutor of the economic and financial center threatens him with an indictment for embezzlement of public funds.

The fight against corruption has become one of the priorities of the Sama Lukongo government. The Minister of State, Minister of Justice and Keeper of the Seals, Rose Mutombo Kiese and the United Nations Development Program (UNDP) have signed a project to support the fight against corruption in the Democratic Republic of Congo. This Project will also contribute to the assessment and capacity building of state actors.

Côte d'Ivoire is committed to the adoption of a bill creating an economic and financial penal center. This bill establishing an economic and financial criminal center aims to fight, among other things, against the financing of terrorism. This bill is worded "in coherence with the international commitments of Côte d'Ivoire, in particular on the United Nations Convention for the fight against corruption and various other regional and sub-regional instruments".

Regional growth

The Technical Commission for Sectoral Policies of UEMOA (CTPS), held its first meeting of the year on the facilitation and harmonization of the conditions of access of Micro, Small and Medium Enterprises/Industries to regional public contracts. The issue of access to bank financing in the context of public procurement and the legal framework for the dematerialization of public procurement procedures in WAEMU were then discussed.