Foreign exchange market

The European currency retreats against the dollar and the yen, the Turkish lira plunges. In a risk-averse market after a report from the US Central Bank (Fed) cautious on the outlook for the economy, the euro fell Thursday against the US dollar and the yen, two safe havens.

Cryptocurrencies

The world's largest cryptocurrency is pulling away from its all-time high, but the momentum for further gains this year appears to be intact. Bitcoin, which hit a new historic high of $66,976 on Wednesday, fell (1.7% to $64,874). Ether, the world's second-largest cryptocurrency, rose 1% to $4,203, with smaller tokens also seeing strong gains.

Facebook will roll out a pilot of its Novi digital wallet in the United States and Guatemala. Facebook's Novi is touted as a new digital wallet for the Diem payment system. Thus, failing to immediately launch its stablecoin diem project (ex-Libra), Facebook will deploy a pilot of its Novi digital wallet in both countries.

Money Market

Senegal issues 50 billion FCFA of Support and Resilience Bonds on the financial market of the West African Monetary Economic Union (UEMOA) on Friday, October 22, 2021. The nominal unit value of a treasury bond is 1,000,000 FCFA. The repayment of the capital will take place on the first working day following the due date set for Sunday, October 23, 2022. Income received on Bonds Assimilables du Trésor is exempt from tax for investors residing in Senegal.

Oragroup mobilized a bond loan of 50 billion CFA francs. Called "Oragroup 7.15% 2021-2028", this loan is denominated at the rate of 7.15% with a maturity of 7 years and a 2-year grace period. Subscription operations were launched with a bond price set at 10,000 FCFA.

the Bank of Central African States (Beac), central depositary of the unified financial market of CEMAC (Cameroon, Congo, Gabon, Chad, CAR and Equatorial Guinea), announces in two press releases published on October 20, 2021, that the Treasury Cameroonian public reimbursed during the week for a total amount of 43.5 billion FCFA, the last installment of its bond loan called "ECMR 5.5% Net 2016-2021", on the one hand; and on the other hand, that the country will pay, on November 15, 2021, an envelope of 58.4 billion FCFA, this time for the repayment of its bond loan "ECMR 5.6% Net 2018 2023" .

Stock market

During the second quarter of 2021, for example, the regional stock market recorded good results according to the quarterly statistics bulletin for the second quarter of 2021 from the Central Bank of West African States (BCEAO). According to the report, on the regional stock market, the BRVM 10 index increased by 3.0% at the end of June 2021 compared to its level at the end of June 2020. As for the stock market capitalization, it increased by 18.0% on the same period. The BRVM 10 index gained 5.48% from 123.40 to 130.16 points. The BRVM Composite index, for its part, gained 6.79% to 150.37 points against 140.81 points last month. The market capitalization of the equity market amounted to 4,525.44 billion FCFA against 4,237.49 billion FCFA in March 2021. That of the bond market amounted to 6,301.42 billion FCFA against 6,383.10 billion FCFA previously. With regard to market transactions over the period, the total value of current transactions over the whole month of April stood at 23.99 billion FCFA for 4,087,323 securities exchanged against 21.39 billion FCFA. FCFA for 3,536,094 shares traded in the previous month.

Raw materials

Oil prices fell sharply at the end of the week, under the effect of profit taking after a frenzied cavalcade, but the conditions remain in place to go higher. The price of a barrel of Brent North Sea oil for December delivery fell 1.41% or $1.21 in London from the previous day's close, to end at $84.61. In New York, the barrel of West Texas Intermediate (WTI) for the same month, which was the first day of use as a benchmark contract, lost 1.10% or 92 cents, to end at 82.50. dollars.

Benin's National Metrology and Quality Management Standardization Council (CNMGQ) has approved standards for the soybean industry. This approval follows very enriching technical and scientific discussions led by CNMGQ members from the private and public sectors, all specialties combined. According to the official government website, the standards in question are 4 in number. These are soybean seed, soy milk, grain soy and soy cheese.

The Bank of Central African States (Beac) projects a drop in Cameroon's cocoa production during the 2021-2022 season. La Beac indicates that Cameroon could see its cocoa production drop due to the “phenomenon of vegetative rest”. As its name suggests, this phenomenon refers to the period during which plants rest, slow down their vital functions and stop all growth to save energy.

Faced with the shortage of raw materials, the price of aluminum increased by 70% in 2021. This increase is explained by the recovery in global demand, political instability in Guinea but also the fight against pollution. in China. Aluminum now costs $3,000 a ton, up 70% year-on-year.

Companies

The South African financial rating agency, Global Credit Rating (GCR), announces that it has assigned issuer quality ratings (BBB/A3/Stable) to digital bank FairMoney Nigeria. The assigned ratings were driven by FairMoney's non-indexed position, strong liquidity, resilient balance sheet, good underwriting practices and strong growth trajectory since inception.

The Council of Ministers announces that Petroci Holding becomes a State Company with capital held entirely by the State. Formerly a company with public financial participation, the National Petroleum Operations Company of Côte d'Ivoire (Petroci holding) will now have advantageous prerogatives. With this new status by repeal by decree adopted by the Council of Ministers, Petroci Holding with a capital of 20 billion CFA francs, aims to make Côte d'Ivoire the hub of trade in petroleum products for all countries. of the sub-region, indeed of all of Africa.

The Belgian Investment Company for Developing Countries (BIO) targets SMEs in the sectors of renewable energy, financial inclusion, agribusiness, health and education. It opened its first office in Africa in Abidjan, Côte d'Ivoire. The new regional office of the financial institution for the private sector covers all the countries of the West African Economic Monetary Union (UEMOA) plus Ghana.

Banks and Insurance

The Bank of Central African States (BEAC) informs in its latest note on public finances that the consolidated debt of the countries of the Economic and Monetary Community of Central Africa (CEMAC) remained relatively stable in the second quarter of 2021 The main economy of the region, Cameroon has a debt of 10,687 billion FCFA at the end of June 2021, including 6,922 billion in external debt and 2,838 billion in internal debt. According to the BEAC document, in Chad, over the same period, the external debt fell from 852.6 billion to 840.9 billion, while the internal debt fell from 1,079.8 billion to 1,082.2 billion. . In Equatorial Guinea, under the IMF-supported reform program, the debt management strategy is essentially to contract no new borrowing or secured borrowing facilities for three years. With regard to Congo, the debt is estimated at more than 6,016 billion FCFA.

BOA Mali executives released the bank's business results for the first half of 2021. According to the disclosed figures, the bank recorded a 44% drop in its net income. According to the managers of this banking establishment based in Bamako, this result fell from 3.080 billion FCFA as of June 30, 2020 to 1.731 billion FCFA as of June 30, 2021, i.e. a contraction of 1.349 billion FCFA. The bank's balance sheet total stood at 616.661 billion FCFA against 581.455 billion FCFA in the first half of 2020 (+6.05%).

To better serve customers, SUNU Assurances is sealing a new partnership with TOUREX CORPORATE. The two partners launched the Auto Connectée service on Tuesday, October 19, 2021 in Libreville. Auto Connectée will allow customers to benefit from a geolocation and vehicle fleet management service, in addition to quality insurance coverage.

In an effort to enable organizations to predict and mitigate the worst effects of a drought, Start Network has signed a new climate risk insurance policy. This insurance will protect up to 160,000 people in Senegal from the effects of drought. The $1.5 million policy was underwritten by Start Network and its member partners including Catholic Relief Services, Save the Children, Action Against Hunger, Plan, Oxfam and World Vision, with the financial subsidiary of the Mutuelle panafricaine de gestion Disaster Risk Management (ARC Limited).

The pan-African investment platform dedicated to Africa, AfricInvest invests in Raynal Assurances Burkina Faso. With this operation, Sunu, who co-founded Raynal Assurances IARD in 2005 with Burkinabè businessmen, marks his departure after 16 years of investment.

Financial crimes

In total, more than 80,000 Belgian companies and ASBLs are not in good standing with the UBO (Ultimate Beneficial Owner) register. Around 11% are still not in compliance with the directory required by the European directive in order to prevent money laundering or the financing of terrorism. After the 8,000 companies which will receive a fine of 500 euros per director, the ASBLs will then follow. Since the end of 2019, the UBO register must contain the names of the people who hold the reins of power in companies, non-profit organizations, foundations and simple companies.

Alex Saab, a close associate of Venezuelan President Nicolas Maduro, was arrested in Cape Verde in June 2020 for money laundering on behalf of the government of Venezuela. He was extradited to the United States last Saturday. Alex Saab, a businessman wanted by US authorities is allegedly involved in a bribery scheme aimed at profiting from Venezuela's state-controlled exchange rate. He is also suspected of having organized a network of corruption which made it possible to benefit from a program of food subsidies managed by the State.

Hundreds of Congolese have been scammed by a fake bank known as Crédit Mutuel d'Afrique (Cremaf). This establishment operated between May and August 2021. Cremaf, a micro-finance establishment borrowed the same name as the one accredited by the State in 2013 to scam more than 600 Congolese citizens. The establishment guaranteed a profit of 200% of the savings deposited after 78 days. The plaintiffs claim more than 200 million FCFA (more than 304,000 euros). But Cremaf is no longer able to reimburse.

The CEO of the African Intellectual Property Organization suspended following suspicion of embezzlement. On October 14, 2021, Alimatou Shadiya Assouman, the Beninese Minister of Industry and Trade, also President of the Board of Directors of the African Intellectual Property Organization (OAPI), whose headquarters are in Yaoundé, Cameroonian capital , signed a decision suspending the director general of this pan-African organization. To justify the suspension of Denis Loukou Bohoussou, the text mentions in particular "the refusal of the director general to enforce the decision to audit the management of the organization, in order to clarify the suspicions of bad governance and financial embezzlement directly jeopardizing the interests of the organization.

Extractive companies in the Economic and Monetary Community of Central Africa (CEMAC) are exposed to sanctions for non-compliance with exchange regulations. From January 1, 2022, all economic agents in activity must comply with the foreign exchange regulations in force since March 2019 under penalty of sanctions. The strict deadline set by the Heads of State of the sub-region at the extraordinary summit on August 18, to “equitably apply exchange regulations to all economic agents” is December 31, 2021 at the latest.

Governance

Three countries of the West African Economic and Monetary Union (UEMOA), in particular Benin, Senegal and Côte d'Ivoire, benefit from Benin's local currency rating of A- to A, from the bloomfield investment agency corporation. Initially, only the last two countries had this rank. But a recent rating by the Ivorian agency reveals that Benin has achieved this performance.

Regional growth

After a 3.4% increase in the ^1st quarter, the recovery of economic activity within the West African Economic and Monetary Union (UEMOA) consolidated in the second quarter of 2021. Gross Domestic Product (GDP) in the area was up 7.7% in the second quarter of 2021, year on year. The Central Bank of West African States (Bceao) informs that the growth of GDP in volume in the Union results from the good orientation of economic activity in all sectors. It indicates that the added value of the tertiary sector increased over one year by 9.3% in the second quarter of 2021, after an increase of 3.7% the previous quarter.

UEMOA is working on setting up a platform to stimulate the development of a win-win partnership between the public and private sectors in member states. The workshop organized this week made it possible to examine and validate the provisional report of the study carried out with the technical and financial support of the Facility for the reform of the investment climate (ICR), co-financed by the European Union, the OACPS group, the German Cooperation BMZ and the British Council.

Togo and the United Nations Economic Commission for Africa (ECA) announce for October 25 and 26, 2021 an international summit on cybersecurity. This meeting will see the participation of several heads of state and ministers, leaders of the private sector, as well as leaders of African civil society. The purpose of this Summit is to make cybersecurity an absolute priority for States.