Foreign exchange market

The Euro recovered +0.3% towards 1.1340 (it climbed to around 1.1360), the Swiss Franc by +0.3% to 0.914. The Pound posted +0.4% towards 1.3485/$, only the Yen rose marginally by +0.1% towards 114.9/$. The greenback seems weakened -despite US T-Bonds which show a yield of +7pts at 1.55%- after the publication of a US trade deficit which is now flirting with -$100bn according to an advanced estimate from the Commerce Department. The balance is negative at $97.8 billion for November 2021, compared to a deficit of $83.2 billion for the previous month.

Cryptocurrencies

Losing $3,111.19 from its previous close, bitcoin fell 6.13% to $47,606.92 on Tuesday. Bitcoin, the largest and most well-known cryptocurrency in the world, is down 31% from its peak of $69,000 reached on November 10. Ether, the coin linked to the ethereum blockchain network, fell 5.57% to $3,812.6 on Tuesday, losing $224.8 from its previous close.

The cryptocurrency industry needs to work with regulators to design new, more effective regulatory frameworks according to cryptocurrency scholar Duncan Hoffman. While speaking in a forum at Le Monde, on the regulation of cryptocurrencies in France, cryptocurrency specialist Duncan Hoffman noted the need for cooperation between the cryptocurrency sector and regulators. According to him, it is essential that investors, companies and institutions in the sector understand both how governments regulate cryptocurrencies and how industry leaders can advance the regulation of cryptocurrencies.

Stock markets

On December 30, 2021, at the end of the trading session, the market capitalization of the stock market of the Regional Stock Exchange (BRVM) crossed the bar of 6,000 billion FCFA. As for the capitalization of the bond market, it continued its downward trend, falling from 7222.393 billion FCFA the day before to 7222.121 billion FCFA on December 30, 2021, i.e. a decline of 272 billion FCFA. The BRVM 10 index (index of 10 key stocks) recorded, for its part, an increase of 0.61% to 152.61 points against 151.69 points the day before. The total value of transactions increased, standing at 8.781 billion FCFA against 2.326 billion FCFA the day before, an increase of 6.455 billion FCFA.

Money Market

As part of its bond loan called "TPBF 6.50% 2020-2028" for an amount of 4.550 billion FCFA, the Public Treasury of Burkina Faso (TPBF) will, on January 9, 2022, pay the half-yearly interest. The general management of the Regional Stock Exchange (BRVM) announces that the State of Burkina Faso, through its General Directorate of the Treasury and Public Accounting (DGTCP), had, during the period from February 27 to March 13, 2020 included, issued a bond on the regional financial market with the aim of mobilizing resources to finance growth-enhancing projects included in the National Economic and Social Development Plan (PNDES).

Raw materials

The year 2021 has been the year of catch-up for the barrel of oil, the prices of which have risen by more than 40%. Oil prices eased slightly on Thursday but remained close to their one-month highs hit the previous day as investors remained confident in robust demand despite the spread of the Omicron variant. Predictions of robust demand were bolstered by weekly data from the U.S. Energy Information Agency (EIA), which reported a 3.6 million barrel decline in commercial crude reserves American.

The "Baleine" deposit could quadruple the country's black gold production and diversify its income. This new oil field in Côte d'Ivoire "will make it possible to significantly increase Ivorian oil production, supply a sufficient quantity of gas to the electricity sector, and increase resources for the financing of development projects" , President Alassane Ouattara said in mid-December during a press conference with ENI CEO Claudio Descalzi.

Companies

The Impulse, guarantee and support fund for very small, small and medium-sized enterprises and crafts (Figa) has signed agreements granting financing guarantees with six microfinance establishments. The agreements were initialed between the director general of Figa, Armel Fridelin Mbouloukoué, and the heads of six microfinance establishments, namely Express union; Naticred; of Hope Congo sa; La Congolaise de microfinance, Mucodec and the Chardon Farell group.

The US sanctions, which notably cut off the Huawei company from global component supply chains, have plunged its smartphone branch into uncertainty. The group achieved between January and December a turnover of 634 billion yuan (87.4 billion euros), said in a New Year message its president in office, Guo Ping.

According to the Dealogic platform, companies debuting on global stock exchanges in 2021 raised a total of $594 billion (524 billion euros). This is a record amount that hides varying fortunes. The number of initial public offerings (IPO) jumped 51% over one year globally.

Banks and Insurance

The Board of Directors of the African Development Bank Group (AfDB) approved last Friday the new Country Strategy Paper, 2021-2026 for Togo. The new Country Strategy Paper will serve as a reference framework for the Bank's interventions during the 2021-2026 period. It will support Togo's 2021-2025 Government Roadmap. The strategy aims to support the acceleration of structural transformation and the diversification of the Togolese economy in order to create decent jobs with high added value, and to build socio-economic resilience for sustainable and inclusive growth.

On December 5, the Central African Banking Commission (Cobac) announced serious sanctions against the top management of Banque Atlantique Cameroun (BACM), a subsidiary of the Atlantic Financial Group (AFG) holding company. The CEMAC Court of Justice has just annulled these sanctions. This order follows two appeals lodged with the Court on November 16, 2021 by Banque Atlantique Cameroun.

The Bank of Central African States (BEAC) wants to take back 50 billion in cash from banks in the area. To this end, it launched, on Monday, a call for tenders with a view to taking over their long-term liquidity (1 year) for a fixed interest rate of 0.50%.

BCEAO data reveals that the net deterioration rate of non-performing loans in WAEMU banks and financial institutions increased slightly by 0.3 percentage points at the end of September 2021 compared to the same period of 2020 .

Orabank Togo, a subsidiary of the pan-African banking group Oragroup, called on the regional financial market. This operation, launched on December 9, 2021, enabled it to raise 25 billion FCFA by selling 7% of receivables to FCTC ORABANK for the period 2021-2026. The operation was closed early on December 10, 2021. The subscription level of 152% demonstrates the remarkable success of the operation as well as the market's appetite for alternative and innovative financial products.

The new Togolese acquisition of the Burkinabe businessman Mahamadou Bonkoungou, the former Togolese Bank for Trade and Industry (BTCI) which he renames IB Bank Togo (International Business Bank Togo), will be managed by Nabil Tahari , also director of IB Holding. In a decree signed on November 11, Sani Yaya indicated that the new majority shareholder has undertaken to make available to the group an amount of 10 billion FCFA in the form of a blocked shareholder current account.

The Equatoguinean bank Bange Bank continues its development in Cameroon. After Douala the economic capital last October, Banco National de Guinea Ecuatorial (Bange Bank) officially opened its doors at the Rue des Banques in Yaoundé, the political capital of Cameroon on December 23. Bange Bank Cameroon intends to implement a commercial policy based more on medium-term credit (3 years).

Financial crimes

President Alassane Ouattara announced the release of 18 billion FCFA to support the fight against grazers in 2022. The implementation of the National Cybersecurity Strategy is estimated globally at 18 billion FCFA over the period 2021-2025. It is planned for this purpose, the creation of two structures to carry out this project.

In Senegal, directors have been pinned down in multi-billion dollar embezzlement cases in many national directorates. In detail, 4.6 billion CFA francs were diverted from the Treasury, 1.7 billion CFA francs stolen from Poste Finances and 1.4 billion from Lonase.

The Economic and Financial Police Division (DPEF) of the National Police of Burkina Faso pinpointed three companies and a tax consulting firm. In addition, 14 managers of companies and businesses involved were questioned. The National Coordination for the Fight against Fraud (CNLF) stepped up to the plate on Tuesday, December 28, 2021 to report the information that “three companies and a tax consulting firm were pinned down in the falsification of invoices and/or the establishment of false invoices that allowed several companies and businesses to consume tax evasion estimated at around two billion four hundred million CFA francs (2,400,000,000 FCFA)”.

Governance

On the sidelines of the fourth edition of the Financial Afrik Awards held on December 17 in Nouakchott (Mauritania), 100 unpublished portraits of the personalities who made economic and financial Africa in 2021 were published. Among others: Romuald Wadagni, Minister of State, Minister of Economy and Finance of Benin; Zainab Ahmed, Minister of Finance of Nigeria; Tiémoko Meyliet KONE, Governor of the Central Bank of West African States (BCEAO); Adrien Diouf, Managing Director of Agence UMOA-Titres; Edoh Kossi Amenounvé, CEO of the BRVM; Sidi Oud Tah, Managing Director of the Arab Bank for Economic Development in Africa (BADEA); Serge Ekué, President of the West African Development Bank (BOAD); Akinwumi Adesina, President of the African Development Bank (AfDB); Christian Agossa, Director General CRRH-UEMOA; Ade Ayeyemi, Ecobank Transnational Incorporated (ETI); Constant Nemale, CEO of Africa 24; Khady CISS Wade, CEO of Reussir Business and Priscilla Wolmer, CEO Africa 54.

Regional growth

On December 17, 2021, the Council of Ministers of the West African Monetary Union (UMOA), during its fourth ordinary session, noted that the prospects for economic growth in the Union remain favorable. Growth should stand at 6.4% in 2022 after 6.1% in 2021. The Union's performance results from the continued implementation of Member States' recovery plans as well as the return to normal activity in the transport, tourism and leisure sub-sectors, thanks to the easing of the health crisis due to Covid-19.

Nominal interest rates charged by banks on customer deposits have generally fallen in the West African Economic and Monetary Union (UEMOA). The nominal interest rates applied by banks on customer deposits in the UEMOA space fell by 21 basis points, to stand at 5.13% in 2020 against 5.34% in 2019.

The National Agency for the Promotion of Research and Innovations (ANVAR) held an information workshop for science journalists on national research and innovation policies and strategies on Thursday, December 23, 2021. This initiative is part of the Valorization of Research Results in West Africa (VaRRIWA) project. This program aims to create an incentive environment for the transfer of technological results, inventions and innovations in 4 West African countries (Togo, Benin, Senegal and Burkina Faso).