Exchange Market

The pound plunged on Friday and hit a one-and-a-half-year low against the dollar. It lost 1.10% to 1.2887 dollars around 10:50 am and 0.76% against the euro at 83.78 pence. On the other hand, the euro fell 0.34% to $1.0797.

The value of the euro, the common currency of 19 Member States of the European Union (EU), has declined by 14.2% in recent months against the US dollar, leading in its wake to the decline of the CFA franc, a currency used by the 6 MEMBER COUNTRIES of the CEMAC and the 8 WAEMU countries. A situation that leads to a fall in rates on loans, and disinterests investors, whose losses are reinforced by rising prices (inflation). The decline has an advantage for exports, but due to the volume of imports, it will be necessary to spend more in local currency to pay international bills.

Cryptomonnaies

More than 40 business leaders from the cryptocurrency world are asking the European Union not to over-regulate the market. This request was made in a letter sent to the 27 finance ministers of the European Union on 13th April last. The EU is ahead of the US and Britain in drawing up a set of rules for this $2.1 trillion sector.

The leading US cryptocurrency exchange Coinbase has launched its NFT marketplace. The platform will make it possible to report content protected by copyright or fraud. The ability to create (or "hit") NFTs will be added to Coinbase's NFT platform in the future.

Current markets

After a contrasting situation the day before, the two indices of the Regional Stock Exchange (BRVM) ended the trading day of April 20, 2022 on an upturn. The BRVM Composite index recorded an increase of 0.61% to 220.67 points against 219.33 points the day before. For its part, the BRVM 10 index gained 0.31% to 168.29 points against 167.77 points previously. The market capitalization of the equity market recorded an increase of 40.367 billion FCFA to 6642.635 billion FCFA against 6602.268 billion FCFA the day before. As for that of the bond market, it went from 7745.016 billion FCFA the day before to 7720.146 billion FCFA on April 21, 2022, a decrease of 24.87 billion FCFA. The total value of transactions stood at CFAF 2.231 billion compared to CFAF 1.104 billion the day before.

Monet Market

It is through a public offering issue of an Islamic bond called Sukuk Ijara SOGEPA SN 2022 that Senegal launches the subscription which starts on April 22 and ends in principle on April 26, 2022.  CGF Bourse is the leader of the management and intermediation (SGI) and all IGS approved by crePMF are members of the investment syndicate. The price of the issue is 10,000 FCFA with a periodicity of rents that is semi-annual.

The State of Côte d'Ivoire has collected the sum of 76.999 billion FCFA at the end of a simultaneous issue of auction of 91-day assimilable treasury bonds (BAT) and 5- and 7-year assimilable treasury bonds (OAT). The transaction was carried out on 19 April 2022 on the WAEMU financial market.

The General Directorate of Treasury and Public Accounting of Togo obtained on 15 April 2022 on the financial market of the West African Monetary Union (WAMU) an amount of 32 billion FCFA (48 million euros) at the end of its issue of recovery bonds (DSB) from the Treasury of maturity 7 years organized in partnership with UMOA-Titres based in Dakar. Launched by the WAMU-Securities agency in collaboration with the Central Bank of West African States (BCEAO), the issuance of RDAs aims to enable the issuer to mobilize the savings of natural and legal persons.

At the end of the issue, the State of Benin retained 10.027 billion FCFA on global investor bids of 47,527 billion FCFA. The issuance of 7-year Treasury Equivalent Bonds (OAT), organized on April 14, 2022, by Benin resulted in a low absorption rate. Investor submissions were 21.10%.

Prime materials

Oil prices were falling again on Friday, struggling to rise sustainably. Around 09:25 GMT (11:25 CET), the barrel of North Sea Brent for delivery in June lost 1.57% to 106.63 dollars. The barrel of US West Texas Intermediate (WTI) for delivery in the same month fell 1.72% to $ 101.66.

In March 2022, oil production reached a total volume of 35 million 417 thousand barrels (MMBBLS), an increase of 9.5% compared to February. In February, crude oil production was 32,327 MMBBLS. Associated natural gas production stood at 87.583 million cubic feet (MMSCFD) in March, a daily average of 2.825 MMSCFD, an increase of 7% from the previous month. In February, total gas production reached 81,621 MMSCFD corresponding to a daily average of 2,915 MMSCFD.

The kerosene supply system is severely disrupted in Senegal due to "an unfavorable international situation" combined with unprecedented tensions on the prices of certain raw materials. According to the statement of the Blaise-Diagne International Airport of Dakar (AIBD) which carries the information, the refueling operations of the aircraft will no longer be able to continue from Wednesday, April 20, 2022" at midday, "for a provisional period of two weeks".

In Côte d'Ivoire, more than €46 million of investment has been committed in the coffee -cocoa sector in 2021. The cocoa sector is on the rise with an increase in production of 2.56% over 2021 compared to last year to 2.228 million tonnes (Mt) and exports to 2.309 Mt up 13.89%. On the other hand, the coffee sector is far behind. Production fell 25.58 percent to 61,312 tons and exports tumbled 43.88 percent to 46,163 tons.

The Burkinabe State is planning a national cotton processing center. The Ministry in charge of industrial development has begun the validation of a study for the creation of this National Cotton Processing Center (CNATAC), to the tune of three billion CFA francs that will be located in Bobo-Dioulasso.

The Singaporean group, Valency International aims to support Côte d'Ivoire, which processes only 10% of its production locally of Cashew. The group has secured funding from Finnfund to launch a cashew processing plant in the country.

Companies

Afino start-ups have drained a record $5.2 billion in venture capital in 2021. This data was revealed in a report by the African Private Equity and Venture Capital Association (AVCA). The financial sector accounted for 60% of investments by value and almost a third of transactions by volume.

The market seems to be more cautious for Nestlé Côte d'Ivoire at the beginning of 2022. The company announced a turnover of 195 billion FCFA up 13.7%. Investors who acquired Nestlé CI shares in January 2021 can now enjoy a capital gain of more than 1300% and this year again the return of 14% per share remains attractive.

Banks and Insurance

Nigerin has just received $250 million in support from the World Bank to address the economic and security crisis. This funding will enable 25 municipalities across the country to fight droughts, floods and extreme heat events. The country has also signed  two financing agreements with the African Development Bank (AfDB). A first envelope of 70 billion CFA francs is intended for the development of road infrastructure and another of 789.5 million CFA francs for the agricultural sector.

The African Development Bank Group announces its 2022 Annual Meetings from May 23 to 27 in Accra, Ghana and the 46th meeting of the Board of Governors of the African Development Fund (ADF) on August 26-27, 2020. This year's meetings will be held in a hybrid format with participants present in Accra and online. The theme of the 2022 Annual Meetings is: "Fostering Climate Resilience and a Just Energy Transition for Africa".

For the first time, the African Export-Import Bank (Afreximbank) had a positive year and is growing strongly with interest income again crossing the billion US dollar mark, according to a statement from the bank published on Tuesday, April 19 from Cairo. The group's equity increased by 17.4% to $4 billion from $3.4 billion the previous year.

The Governor of the Central Bank of West African States (BCEAO), Tiémoko Meyliet Koné has been appointed Vice-President of Côte d'Ivoire. The announcement was made by President Ouattara in his speech at the Congress of the History of Côte d'Ivoire, held in Yamoussoukro. The BCEAO thus sees itself as one of its greatest governors, following a call from the country.

The Attijariwafa bank group expands its network in Chad. Through a new subsidiary called Attijari bank Tchad, the group is consolidating its presence in the CEMAC zone (Central African Economic and Monetary Community).

Standard Chartered Bank, announces that it will cease operations in several countries, including Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe. The Bank's activities in these countries were found to be unprofitable. The Bank's result has been there for several years is negative. The Bank is also considering leaving Tanzania and Côte d'Ivoire.

The Malian subsidiary of the Pan-African Bank Ecobank, with the aim of offering its customers high value-added services, allows users to pay their water bill through digital solutions. This innovation aimed at all customers, individuals, SMEs or large companies aims on the one hand to reduce queues at somagep's cash registers and on the other hand to save time in the processing of operations.

Ecobank Benin has just benefited from a portfolio guarantee line for a total amount of 1.6 billion CFA francs. This fund granted by the African Guarantee Fund for Small and Medium Enterprises (AGF) will support SMEs, women's entrepreneurship and the green economy in Benin. The guarantee line makes it possible, on the one hand, to overcome the difficulties related to the lack of guarantee encountered by SMEs / SMIs and which constitute an obstacle to the financing of their activities and on the other hand to further increase its commitment to the SME / SMI segment while promoting the development of female leadership in the sector private.

The Société Générale de Côte d'Ivoire announced a total balance sheet of 3,000 billion FCFA. This total balance sheet includes all the financing that is granted to the Ivorian economy, and all the deposits and funds that the shareholders have entrusted to us to move forward. Over the past five years, the banking institution has increased the funds lent to Ivorian economic actors.

Southonia has signed 3 new agreements worth more than 233 billion CFA francs with the Islamic Development Bank (IDB). These agreements will focus on the Dakar/Tivaouane/Saint Louis motorway projects, phase 2 of the TER Diamniadio-AIBD and the construction of a commercial and residential Waqf complex for the benefit of the Daara.

The Gabonese reinsurer plans in its initial agenda, to go public in December 2022. The Gabonese Commercial Reinsurance Company (SCG Ré) has already surrounded itself with the three tips to carry out this operation. Price Waterhouse Coopers supports SCG Ré in the certification of the IPO process, Ernest and Young, legal advisor will comb through the provisions and regulatory framework of CIMA/OHADA. Finally, the KRZ agency, known for having organized the Fanaf in Libreville, takes care of the communication aspects.

Insian insurtech Etap aims to expand its team, and drive the adoption of car insurance across Africa. Etap secured $1.5 million in seed funding to expand its team and drive the adoption of auto insurance across Africa. The funding will support the roll-out of its app that allows drivers to purchase insurance, quickly complete claims and be rewarded for good driving and accident prevention.

Financial Crimes

The report of the British NGO Tax Justice Network (TAJ) reveals that companies based in the Republic of Congo have transferred 860 billion FCFA of their profits abroad to the detriment of the country's taxation. In Congo for the year 2021, these operations have made the Congolese State bear more than 280 billion CFA francs in tax losses.

The President of the Transition of Guinea has announced the establishment of a cell for denouncing acts of corruption through a toll-free number that will be placed under his direct authority. The unit will be in close collaboration with the specialized services. However, the Head of State recalled that the authors of false denunciations engage their moral and or criminal responsibility.

Mahamadou Zada, appointed Minister of Communication in April 2021 by President Mohamed Bazoum, was "interviewed by a judge of the economic and financial pole of Niamey" who ordered "his incarceration in Kollo", a city located about fifty km south of the capital, according to this source. He was cited in a case of embezzlement of three billion FCFA (more than 4.5 million euros) when he ran a public company between 2013 and 2021.

Regional growth

The Central Bank of West African States (BCEAO), in its analysis  of the evolution of the indicators evaluated on the basis of the estimated data, took stock of the situation of the microfinance sector in the member countries of UMOA for the fourth quarter of 2021. It shows that 17,001,669 people benefited from the financial services provided by the estimated 508 units at the end of December 2021.

In its latest Global Economic Outlook report, the International Monetary Fund (IMF) raised its 2022 growth forecast for sub-Saharan Africa to 3.8%, despite inflationary risks. Like Niger, six other African countries are expected to record growth of more than 6% this year.

The 20th Congress of the Association of Electricity Companies of Africa (Asea) is announced from 14 to 21 July. The congress to be held in the Senegalese capital is expected to welcome nearly 1,000 participants around the theme: "need for public service and the performance of electricity companies".

i-conferences is organizing the Africa Capital Markets Forum 2022 on May 12 and 13 in Casablanca. The objective of this event is to make the African economy more efficient and integrated. In partnership with the Casablanca Stock Exchange, COSUMAF, CREPMF, BRVM and Perenity Software, this event will be attended by more than 250 participants from nearly 30 countries representing ministries of finance, market regulators, financial institutions, stock exchanges, management and intermediation companies, strategy consultants, technology providers ...