Foreign exchange market

After the announcement of the detection of a new variant of Covid-19 in South Africa, safe-haven currencies appreciated strongly on Friday. At the end of the week, the yen appreciated by 0.73% against the euro at 128.38 yen and by 1.23% against the dollar at 113.96 yen. The franc appreciated for its part by 0.51% against the euro at 1.0437 francs and by 0.97% against the dollar at 92.69 cents. A collateral victim, the South African rand fell 1.81% against the dollar to 16.26 rand, shortly after hitting a year-long low against the greenback. Finally, the euro held up better than the dollar, appreciating by 0.48% against the greenback at 1.1264 dollars for one euro.

Cryptocurrencies

Bitcoin tumbles as coronavirus variant scares away riskier assets. The number 1 cryptocurrency fell nearly 8% to $54,377, its lowest level since October 13. It was on course for its biggest one-day drop since September 20. Small coins, which tend to move in tandem with bitcoin, also fell. Ether, second by market capitalization, fell 11.6% to its lowest level in a week.

Money markets

Through its Directorate General of Treasury and Public Accounting, the State of Togo obtained 55 billion FCFA on the financial market of the West African Monetary Union (UMOA). It was at the end of its issue of stimulus bonds (ORD) from the Treasury with a 15-year maturity. Of the overall amount proposed by investors, the Togolese Public Treasury withheld 55 billion FCFA and rejected the remaining 77.639 billion FCFA, representing an absorption rate of 41.47%.

Stock markets

The work of the 24th annual conference of the African Securities Exchanges Association (ASEA) was launched on Wednesday, November 24, 2021 by the President of ASEA, Edoh Kossi AMENOUNVE. Placed under the theme "Financial markets, key drivers of Africa's emergence", this edition highlights the role of African capital markets and stock exchanges in accelerating the post-Covid-19 economic recovery of our country. continent, financing infrastructure, small and medium-sized enterprises (SMEs) and innovation.

According to a publication by the Bloomfield Investment Corporation rating agency based in Abidjan, the title BANK OF AFRICA Côte d'Ivoire achieved the largest increase in the stock market of the Regional Stock Exchange (BRVM) with a gain of 12 .83%. BOA Côte d'Ivoire is thus the best performing stock of the week under review with a price of 5,585 FCFA, at the end of the week of November 15 to 19, 2021.

On Friday, November 25, 2021, the Regional Stock Exchange recorded more than 10 billion FCFA in transactions. On the side of the two indices, we note an increase contrary to the session of the day before. The BRVM 10 index gained 0.68% to 148.71 points against 147.71 points the day before. For its part, the BRVM Composite index also gained 0.56% to 194.080 points against 193.00 points the day before. The market capitalization of the equity market stood at 5838.654 billion FCFA against 5806.121 billion FCFA the day before, an increase of 32.533 billion FCFA. As for that of bonds, it recorded a drop of 14.52 billion FCFA to 7301.922 billion FCFA against 7316.442 billion FCFA the day before.

Raw materials

Cocoa consumption in the European Union (EU) is 70% supplied by Côte d'Ivoire. This figure was revealed by Stéphane Brossard, Head of the Inclusive and Sustainable Growth Team at the EU Delegation in Abidjan, on the sidelines of a plea by the Ivorian Civil Society Convention (CSCI) on the Partnership Agreement Economic Intermediate (APEI).

The Indian Nand Kishore and Sons announces an investment of 20 million dollars for the promotion of cashew in Benin. The group plans to settle in the industrial zone of Glo-Djigbé. The factory will be able to process 30,000 tons of cashew nuts each year.

Companies

Ori Rewane has steered the growth of FCMB Group over the years towards being a full service provider to all operating companies that make up the group. Thus, Verod Capital Management Limited announced on Monday, November 22, the appointment of Ori Rewane as Head of Investor Relations and Corporate Communications. With over 20 years of experience in the financial services industry locally and internationally, Ori Rewane has steered the growth of FCMB Group over the years towards a full service provider to all financial services companies. holdings that make up the group.

ARISE IIP, a pan-African developer and operator of world-class industrial parks, and FibreTrace, a world leader in fiber technology, have announced a new pilot program dedicated to the traceability of the entire production chain, from cotton fibers to garments. It will be via spinning factories that ARISE IIP will install in the Glo-Djigbé Industrial Zone (GDIZ) in Benin during 2022.

Air Liquide Côte d'Ivoire, a subsidiary of the French multinational Air Liquide International, significantly improves its profit by nearly 300 million FCFA in the first half of 2021. This profit stood at 184.587 million FCFA against -112.006 million FCFA as of June 30, 2020, an increase of 265%. Turnover, for its part, increased slightly by 6%, from 3.303 billion FCFA in the first half of 2020 to 3.510 billion FCFA a year later.

The mining company Golden Star Resources has received the agreement of the Ghanaian government to complete the process of its takeover by Chifeng Jilong Gold Mining. In the first half of the year, the Ghanaian Minister of Mines forced Resolute Mining to cancel the sale of the Bibiani gold mine to Chifeng Jilong. This time, the option chosen by the Chinese group (buying out a company instead of directly taking control of a mine) seems to be working.

The turnover of the subsidiary of the Bouygues group specializing in consulting and engineering services in the field of construction, fell by 1.719 billion FCFA (2.578 million euros) in the third quarter of 2021 compared to the same period of 2020. This turnover amounted to 7.706 billion FCFA against 9.425 billion FCFA as of September 30, 2020, a decrease of 18%.

The Gabonese subsidiary of the French oil group, Total, recorded higher results in the first nine months of 2021. A triple favorable conjunction marked by the increase in production, exports and the price of a barrel on the international market. During the reporting period, revenue was $241 billion, an increase of 40% compared to the second quarter of 2021.

Leading pan-African alternative investment firm focused on managing investments in Africa, African Capital Alliance (ACA) has announced that it has taken a stake through its CAPE IV fund, in West Indian Ocean Cable Company (WIOCC), a provider of hyperscale infrastructure in Africa. The structure informed that this investment is part of the fundraising of 200 million USD in WIOCC.

Banks and Insurance

Nearly 20 billion CFA francs have been released by the African Development Bank (AfDB) to support vulnerable populations in Côte d'Ivoire. The new loan covers the implementation of the second phase of the Economic and Social Reform Support Program (Pares II).

The African Export-Import Bank (Afreximbank) is committed to strengthening resilience and disaster risk financing initiatives in Africa. It has signed a memorandum of understanding with the African Risk Capacity (ARC) group, a specialized agency of the African Union (AU). The objective of this partnership is to provide adequate responses to disasters and resilience by using available banking and insurance products adapted to localized challenges.

In Senegal, the African Development Bank (ADB) granted 22.5 million euros to the National Bank for Economic Development (BNDE). This financing agreement is part of a partnership between the two banking institutions which aims to better support the BNDE in supporting the economic development of Senegalese companies.

The international rating agency Fitch has revised the outlook for the West African Development Bank (Boad) from negative to stable with a triple B rating. The international rating agency Fitch explains this rating by strengthening the ability to support its shareholders with the upgrade of the ratings of Côte d'Ivoire, from B+ to BB- in July 2021, and of Benin, from B to B+ in October 2021, in a context of improving macroeconomic prospects. In addition, the Bank authorized on Tuesday, November 23, 2021 new commitments for a total amount of 26 billion FCFA. These commitments target Benin, Burkina Faso and the private sector in the West African region.

The Ecobank Group and the European Investment Bank (EIB) signed a financing agreement on Wednesday, November 24, 2021. Covering 9 years, this long-term credit facility is 65.46 billion CFA francs. The new cooperation agreement between the Pan-African Banking Group and the European Investment Bank was officially concluded at the EU Delegation to Togo in Lomé, in the presence of Koen Doens, Director General of International Partnerships of the Commission of the European Union (INTPA).

The SUNU Group's expansion strategy in Africa continues, after the creation of SUNU Assurances IARD RDC in 2020 and the strengthened presence of SUNU Assurances in Cameroon, Gabon and the Central African Republic in recent years. Allianz Congo Assurances has just been acquired by the SUNU Group. The acquisition-transfer operation was finalized between the SUNU and Allianz groups on November 5th. With this acquisition, the SUNU Group enters the Congo-Brazzaville market, with the objective of offering companies, populations and institutions, but also all internal and external customers, solid and lasting insurance.

Nigeria's Sovereign Trust Insurance recorded double-digit growth in its main financial indicators in the first 9 months of the year. Gross written premium increased by 17% from 8.4 billion naira (20.5 million USD) in 2020 to 9.8 billion naira (24 million USD) in the third quarter of this year. The company's net income climbed 13% to 606 million naira (1.4 million USD) from 537 million naira (1.3 million USD) recorded in 2020.

Financial crimes

A group of NGOs and the media has made public the conclusions of their investigation into documents that have allegedly leaked from BGFIBank RDC SA and which would implicate the latter in alleged acts of embezzlement of public funds. In a press release, the BGFIBank group condemns in the strongest terms the acts contrary to law and ethics that may have been committed in the past within its subsidiary BGFIBank RDC SA. Also, he disapproves of any questionable practices that may have been made in the past within BGFIBank RDC SA.

The virtuosos of the production of counterfeit NINA cards had never ceased to give the banks a hard time. The counterfeiters managed to deceive the fine bankers. Without scruples, they stole millions before their treachery was discovered. It is a whole pharmacy of 13 people including 10 from the RAVEC management who were placed in police custody. They have all acknowledged the facts and assumed their role in this very lucrative scam.

The Government of Mauritius has maintained the organization of a high-level workshop planned at Le Méridien Hotel, Pointe-aux-Piments. The objective of this event is to strengthen the capacity to fight against the risks of infiltration of money laundering offenses and the financing of terrorism in non-profit organizations. The work of this workshop revolves around the need to be on the same wavelength as EU countries and other States with regard to recommendation number 8 of the Financial Action Task Force.

We demand that Chad continue its programs necessary for the reform of its economy. But little is said about the tax leaks that deprive this country of considerable revenue. Indeed, Chad is the country that is the most affected in Africa by tax losses which represent up to 17.1% of its gross domestic product (GDP). The Central African country would have repaid Glencore's debt twice if it had not had to face the setbacks of multinational tax evasion.

UBS finds itself under fire from critics in the affair of the “Congo Hold-up”, including the former president of Congo Joseph Kabila. According to the NGO Public Eye, part of the funds linked to the “Congo Hold-up” affair would have passed through accounts of the Geneva subsidiary of the bank with the three keys. The clan of Joseph Kabila would have embezzled more than 200 million dollars from the central bank, the UN or even mining companies.

The Agency for the Prevention and Fight against Corruption (ACPLS) reveals an alleged embezzlement of several million dollars at the General Directorate of Revenue in Kinshasa (DGRK). Indeed, the APLC informs that it has carried out inquiries and investigations for 8 months to reach these conclusions. Thierry Mbulamoko, coordinator of the APLC filed on Friday, November 19 a file with the general prosecutor's office at the Kinshasa-Matete Court of Appeal containing serious indications of embezzlement of funds in this institution.

Regional growth

Entered into office on May 10, 2021, the College of Commissioners of the West African Economic and Monetary Union (UEMOA), headed by President Abdoulaye Diop, now has a roadmap for the period 2021-2025. The Framework of Priority Actions (CAP 2025) makes it possible to assess the progress made in the Union's integration process, in particular on the three specific objectives of CAP 2025, which are: Accelerating economic convergence and deepening the common market; Consolidate structuring sectoral actions for a viable economic space and Strengthen governance and organizational performance.

In order to assess the balance sheet and prospects of the financial market in Africa and in the UEMOA space in particular after 25 years of existence, PERENITY Software, in partnership with i-conference, is organizing an international conference on Capital Markets. The Malian expertise provided by CIFA BOURSE is on display at this international conference on the capital market in Abidjan. The meeting is placed under the theme “Capital markets: a lever for the emergence of Africa”.

Held from November 15-21 in Durban, South Africa, the second Intra-African Trade Fair (IATF) recorded US$36 billion in transactions. The 2021 IATF aimed to strengthen the foundations for the deployment of the African Economic Free Trade Area (AfCFTA). This edition of the IATF which was held under the theme “Building bridges for a successful ZLECAf” saw the participation of nearly 39,000 people, including 27,000 virtually from 128 countries around the world.