Foreign exchange market

As investors focus on the US Central Bank (Fed) meeting next week, the dollar climbed to a two-week high against the euro boosted by a good US consumption indicator. The euro lost 0.46% against the dollar, at 1.1763 dollars for one euro. The Dollar Index, which compares the US currency to a basket of other major currencies, took 0.41% to 92.92 points.

Cryptocurrencies

According to Chainalysis DeFi Adoption Index, a recent report by Chainalysis, Togo leads in decentralized finance in Africa. The analytics firm that helps governments, cryptocurrency companies, and financial institutions commit to blockchain technologies, concluded in its report that Togo is the top country in Africa when it comes to DeFi (Decentralized Finance). - cryptocurrency). Thus, Togo is currently the only African country to appear in the top 20 alongside China, Russia and the United States of America.

Between outages and delays at crypto-asset trading platforms powered by blockchain technology, cryptocurrency prices have seen drops over the past week. Online digital currency company Coinbase has claimed that a few transactions on its exchange have been delayed or canceled due to errors in its application.

Money Market

Through its Public Treasury, the State of Côte d'Ivoire raised on September 14, 2021, an amount of 66 billion FCFA. This was at the end of its simultaneous issuance of Treasury bills and recovery bonds (ORD) with maturities of 91 days, 5 years and 7 years organized in partnership with the Agence UMOA-Titres based in Dakar. After the auction, the UMOA-Titres agency listed 176.556 billion FCFA in global bids from investors out of a total auction amount of 60 billion FCFA. The coverage rate of the amount auctioned is thus 294.26%. Of the total amount of bids, the issuer withheld 66 billion FCFA and rejected the remaining 110.556 billion FCFA, ie an absorption rate of 37.38%.

Stock market

At the end of the trading session on Thursday, September 16, 2021, the key indicators of the Regional Stock Exchange (BRVM) experienced an upturn. Equity capitalization and market capitalization also performed well. The BRVM 10 index gained 0.09% to 140.48 points against 140.36 points the day before while the BRVM Composite index recorded an increase of 0.12% to 178.93 against 178.72 points the day before . As for the market capitalization of the equity market, it recorded an increase of 6.206 billion FCFA to 5,384.796 billion FCFA against 5,378.590 billion FCFA the day before. That of the bond market is also in the same dynamic, recording an increase of 1.394 billion FCFA to 7095.971 billion FCFA against 7094.577 billion FCFA the day before. The total value of transactions stood at 229.553 million FCFA against 3.837 billion FCFA the day before.

In an interview granted to Sidwaya, Dr Edoh Kossi Amenounvé, Managing Director of the Regional Stock Exchange (BRVM) and of the Central Depository/Bank of Settlement (DC/BR), indicates that Burkina is the 3rd stock market place in the WAEMU. He specified that Burkina Faso through the Public Treasury has been able to mobilize more than 1,380 billion CFA francs to date on the market. These resources have made it possible to finance several development projects, in particular those included in Burkina's National Economic and Social Development Plan (PNDES 1). For the private sector, Burkina has three companies listed on the BRVM whose IPOs have been real successes. These include ONATEL (Moov Africa BF), BOA Burkina and Coris Bank International.

Raw materials

The oil market is pricing in lower than expected supply due to ongoing disruptions at Gulf of Mexico facilities. After falling as low as $74.48, a barrel of North Sea Brent crude for November delivery rebounded minutes before the close to end up 0.27% or 21 cents at 75, $67. Same trajectory for the barrel of American WTI for the contract expiring in October, which had dropped up to 1.48% during the session but ended up in perfect balance, at 72.61 dollars.

The review on the world situation of the sector published by the International Cotton Advisory Committee (ICAC) reports a drop in cotton lint production. This production fell to its lowest level in three years, amounting to 24.2 million tonnes (Mt). The fall in production is mainly due to a decline in the harvest in 4 of the 5 main supplier countries of the raw material, namely India, the USA, Pakistan and Brazil.

Against the backdrop of production restrictions in China and the coup d'etat in Guinea, a major producer of bauxite, the price of aluminum continued to rise to reach 3,000 dollars per tonne, a new high since 2008. Per tonne of aluminum , a metal used in particular in transport or construction, peaked at 3,000.00 dollars around 05:50 GMT (07:49 in Paris) on the London metals market (LME).

The African Green Revolution Forum (AGRF) has announced a new Center of Excellence for Seed Systems in Africa (CESSA) coming soon. This center will help develop better quality, high yielding seeds for various crop varieties in Africa to increase productivity. It will start its activities in 2022 with the objective of providing modern, efficient and resilient seed systems that better serve African farmers.

Cameroon aims to increase its rubber production by more than 6,500 tons in 2022. According to the steering committee of the Oil Palm and Rubber Development Project, implemented by the Ministry of Agriculture and Rural Development ( Minader), this will be achieved through smallholders. In concrete terms, national production should increase by 6,667 tonnes from 2022.

Companies

The rating agency Bloomfield Investment Corporation has confirmed the long-term rating “A with a positive outlook” to the company PALM Côte d'Ivoire, which specializes in the manufacture and marketing of crude palm oil. The rating agency also confirmed the short-term rating “A1 with a stable outlook”. This new one-year rating runs from June 2021 to May 2022. Over the long term, Bloomfield justifies the rating by “high credit quality”. According to agency officials, the protective factors are good.

In accordance with its proximity policy and its ambition to offer the best connectivity to its customers, Sonatel is opening its second Orange Sokhna Mame Diarra Bousso sales agency in Touba, Senegal for improved customer service. This new action is in addition to the extensions carried out on the fiber optic network for residential and business subscribers, the 4G+ network coverage of the "Ila Touba" highway, the broadcast of the event live on the Internet with the provision very high-speed specialized links and illimix telephone packages for the organizing committee and the deployment of connectivity in the Press Areas as well as special offers dedicated to customers and pilgrims.

Banks and Insurance

The World Bank Group has issued a statement regarding the publication of the survey of irregularities in data from the 2018 and 2020 editions of the Doing Business report. This is an independent external review of the facts and circumstances surrounding the irregularities found in the data from the 2018 and 2020 editions of the “Doing Business” report. At the end of this investigation, the financial institution decided to stop publishing the Doing Business report.

While in Cameroon, Ousmane Diagana, Vice-President of the World Bank for West and Central Africa announced the signing of four financing agreements for a total amount of 426.3 billion FCFA, approximately 766 million of dollars. Through this support, the World Bank Group is increasing its interventions in Cameroon.

The African Development Bank (AfDB) has approved a multinational trade finance risk participation agreement of 50 million dollars, or 27.8 billion CFA francs for the benefit of Standard Chartered Bank. The agreement is expected to boost intra-African trade, promote regional integration and contribute to reducing the trade finance gap in Africa, in line with the aspirations of implementing the African Continental Free Trade Area (AfCFTA).

The West African Development Bank (BOAD) has just strengthened its cooperation with the French Public Investment Bank (BPI France). This agreement signed by Serge EKUE, President of BOAD and PEDRO NOVO, Executive Export Director of BPI France aims to develop activities and jointly finance projects, particularly in the small and medium-sized enterprises (SME) sector for subjects relating to creation, innovation, development, investment, and internationalization among others, within the WAEMU zone.

The Central Bank of West African States (BCEAO) injected 179 billion FCFA into the Togolese banking sector. For the 35th weekly liquidity injection, the BCEAO kept the interest rate fixed at 2%. Thus, 3,331 billion FCFA were injected into all the countries of the West African Economic and Monetary Union (UEMOA), a difference of 75.66 billion FCFA, less than the previous operation.

The Central African States Development Bank (BDEAC) provides financial support to the Central African Republic. The President of BDEAC, Fortunato-Ofa Mbo Nchama, and the Minister of State for the Economy in the Central African Republic (CAR), Felix Moloua, signed a loan agreement dedicated to strengthening national health systems as well as the fight against the coronavirus pandemic (covid-19). This financial support will enable the Central African government to contain the pandemic, guarantee the living conditions of the population and strengthen its health system.

BMCE Capital Global Research (BKGR) has published new data on bank liquidity in Morocco. According to the Central Bank, the deficit widened during the previous week by 2.3%, compared to its level a week earlier. The Central Bank has chosen to reduce its 7-day advances to 35.87 billion dirhams (MMDH), a drop of 8% from one week to the next.

The UBA Guinea bank is launching the "UBA Business Series", which is an online discussion panel with its customers in particular and the general public in general. This initiative is part of its support strategy for small and medium-sized enterprises. The first edition of "UBA Business Series", will be held on Thursday September 16, 2021 on the UBA Guinea Facebook page and will have as special guest, Maimouna Barry Baldé, General Manager of NSIA Assurances.

TotalÉnergies Cameroun has signed a partnership with Baloon, a specialist in online insurance brokerage. Thanks to this partnership, it is now possible for motorists coming to buy fuel to take out their insurance policy with Baloon, which claims leadership in this market on the African continent. This operation has been officially tested in a pilot version since mid-July 2021 in 3 TotalÉnergies stations in Douala: Akwa (freedom boulevard), Bojongo (Douala West exit) and Bonamoussadi (Maetur roundabout).

Financial crimes

The fight against corruption is taking a new turn in Côte d'Ivoire. The Ivorian Minister for the Promotion of Good Governance, Capacity Building and the Fight against Corruption, Epiphane Zoro Ballo, launched the verification operation called "Punch" on Tuesday. This operation attacks the structures delivering public services with a strong suspicion of corruption. Also, during the validation workshop of the diagnostic report on the phenomenon of corruption and similar offences, the authorities announced that negotiations are underway for the establishment of "innovative anti-corruption standards".

According to the Basel Institute ranking, Morocco is ranked in the top 4 countries with high risks of money laundering and terrorist financing in the MENA region. In this year's edition, The Basel Institute ranks Morocco 51st in the world out of 110 countries. The Kingdom thus obtains a score of 5.32 out of 10. The authors of the report point out, in this regard, that the more the score tends towards 10, the greater the risk of money laundering and terrorist financing.

To get Mauritius off the gray list quickly, the members of the Financial Action Task Force (FATF) delegation are stepping up meetings with the authorities. The FATF co-chair for the Africa/Middle East region, Fikile Zitha, and the other members of the delegation, had a long working session with the interministerial committee, chaired by Pravind Jugnauth. After consultations the members of the FATF delegation pointed out that, compared to the requirements of the FATF Action Plan, which has 40 recommendations, Mauritius has complied with 39 of them.

Regional growth

The sixth ministerial meeting on security in the UEMOA space resulted in several reforms and a roadmap for the framework cooperation agreement. The draft roadmap takes into account the areas of cooperation identified by the Framework Cooperation Agreement, namely, “all security threats likely to compromise the stability of institutions and social peace”. The roadmap revolves around several objectives, namely: to strengthen the sharing of information and intelligence as well as the fight against terrorism and transnational organized crime in cross-border areas; involve the population in the prevention and management of crises and conflicts; and develop border areas of peace and security. During the meeting, the ministers pledged to strengthen their cooperation through the exchange of intelligence and the coordination of actions to fight against terrorism and transnational organized crime.