Exchange Market

At the beginning of the week, the euro rose against the dollar after the re-election of Emmanuel Macron. Emmanuel Macron was re-elected Sunday to the presidency of the Republic with about 58% of the vote against Marine Le Pen (about 42%) according to the first estimates, a clear victory tempered by the unprecedented score of the extreme right and a high abstention (28%).

Friday, the major currency pairs have declined slightly from their recent trajectories. The dollar edged lower from its recent 20-year high, but it was still on track for its best month since 2015. The euro has lost about 6.6% against the dollar since Russia invaded Ukraine on February 24. The dollar-yen remained above the key psychological level of 130, at 130.085, after breaking through 130 for the first time in 20 years. Meanwhile, the pound edged up to $1.2572 due to the weakening dollar, but it was still set for its biggest monthly decline since 2016.

Cryptomonnaies

The presidency of the Central African Republic has stated that the country has adopted bitcoin as its official currency. A draft law governing the use of cryptocurrencies was unanimously adopted by parliament last week, said a statement signed by Obed Namsio, chief of staff of President Faustin-Archange Touadera. The Central African Republic thus becomes the first country in Africa and only the second in the world to do so.

THE US asset manager Fidelity has announced that it will allow employees contributing to their pensions to build up a portion of their savings in bitcoins. This new gesture contributes to the popularization of cryptocurrency despite the warnings of the authorities.

Stock markets

At the end of the trading session on Wednesday, April 27, 2022, transactions on the Bourse Régionale des Valeurs Mobilières (BRVM) recorded a strong rally. The total value of these transactions has indeed increased to 3.329 billion FCFA. The BRVM 10 index rose 0.33% to 167.70 points. The BRVM Composite Index also rose 0.16% to 219.58 points. The market capitalization of the equity market recorded an increase of 10.795 billion while that of the bond market recorded a decrease of 9.54 billion FCFA.

The Managing Director of Nairobi Securities Exchange of Kenya has announced his ambition to acquire more stakes in stock exchanges across Africa. The goal is to eventually become a pan-continental stock exchange. To finance the acquisitions, NSE has cash reserves of up to 1.5 billion shillings ($12.98 million). The exchange also intends to buy stakes in related companies.

Monet Market

Several countries were on the West African Monetary Union (WAMU) financial market this week. Burkina Faso has raised 25.550 billion CFA francs ; Côte d'Ivoire obtained the sum of 53.153 billion FCFA to finance its budget ; Benin has raised an amount of 41 billion CFA francs ; Niger received the sum of 38.500 billion CFA francs.

Senegal, acting through the National Society for the Management and Exploitation of Built Heritage (Sogepa), has successfully issued a record Sukuk of 330 billion CFA francs. It thus carries out the largest operation in the history of the sub-regional market. The funds raised will make it possible to make investments at the national level to strengthen the State's control over strategic assets affecting  sovereignty or high profitability, in particular the acquisition of stakes in activities such as the Port of Ndayane or the Toll Motorway Management Company, etc.

As part of its registered N150 billion commercial paper program, MTN Nigeria on Monday (April 25th) issued N127 billion ($306.3 million). The issue consists of two durations: a 184-day serial at a price of 7.50% and a 254-day issue at a price of 8.50%.

Climate Bonds Initiative reported in its latest report published on 22 April 2022, that Africa has only secured USD 405 million in green bond financing in 2021. The next COP 27, scheduled for Egypt, should be an opportunity for the continent to diagnose its problems and apply for the necessary green funding.

Prime materials

Oil prices continued to rise on Friday, with Germany, initially opposed, beginning to soften its position on a possible European embargo on Russian oil and gas. The barrel of North Sea Brent for delivery in June, which is the last day of trading, was up 1.30% to $108.99. The barrel of US West Texas Intermediate (WTI) for delivery in the same month gained 0.99% to $ 106.40.

The government of Benin has set the new prices of gas, diesel and oil, on an upward trend in this month of April 2022. From 600 FCFA the diesel increases to 668 FCFA, or 68 FCFA increase. The kilogram of domestic gas increases by 65 FCFA from 730 to 795 FCFA. The price of oil rose from 665 to 851 FCFA, an increase of 186 FCFA.

Companies

The Franco-Malagasy start-up, SAYNA receives the support of three new investors. SAYNA thus becomes the first Malagasy start-up to raise financing from international venture capital funds. Orange Ventures, orange group's multi-stage technology investment fund, Launch Africa Ventures, a pan-African venture capital fund based in South Africa, and the Malagasy Investment Club (Club MAIC) are contributing a total of $600,000 in equity to finance SAYNA's development projects.

La Poste du Benin has initiated "  POST' ASSIST" with the aim of providing a practical and inexpensive solution to the difficulties faced by populations in financing the costs related to the organization of the funerals of their loved ones. This product allows members to benefit from a funeral allowance of at least 150,000 FCFFA up to 600,000 FCFA in the event of the death of a loved one (mother, father, stepfather and mother-in-law) against an annual subscription of 5000 FCFA.

The oil company Shell Nigeria Gas (SNG) has announced that it will supply natural gas to a power plant that is operated by Coodsynergyn Oil West Africa (CS OWA) in southwestern Nigeria. Under the terms of the agreement, SNG will build the necessary infrastructure to connect the power plant to the Escravos-Lagos pipeline system, which has a capacity of 800 million standard cubic feet per day, to facilitate access to gas.

The major energy player in Africa, TAQA Morocco, announced that it has won 5 prizes for the development of solar sites awarded by the Moroccan Sustainable Energy Agency (MASEN). The allocation of the lots is the first phase of the process of developing a potential of 96 megawatts (MW) of solar energy. In a second step, TAQA Morocco will finalize the technical and commercial development of the solar sites.

The fintech Wave Mobile Money has announced that it has obtained an electronic money establishment (EME) license from the Central Bank of West African States (BCEAO). The company co-founded by the Americans Drew Durbin and Lincoln Quirk will thus be able to offer financial services via mobile within the West African Economic and Monetary Union (WAEMU) without the need for partner banks as in the past.

From January to March, Air Liquide achieved an "unprecedented" turnover, due in large part to the soaring energy prices linked to the war in Ukraine. Revenue of 6.887 billion euros, marks a jump of 29% compared to the first quarter of 2021, and 8% on a comparable basis, which excludes the energy effect, the group said Wednesday. This figure is slightly higher than the estimate of 6.76 billion euros established by a consensus of 14 analysts studied by Vara Research, and transmitted by the group to the press.

Banks and Insurance

World Bank is helping Benin improve the quality of and access to primary health care services, and strengthen its capacity to respond to public health emergencies. For example, $187 million in funding from the International Development Association (IDA) has been approved for the benefit of  more than 9 million people.

The Central Bank of West African States (Bceao) has opened a Fintech Knowledge and Monitoring Office (Bcsf). The objective is to promote the FinTech sector by organizing exchanges between the Regulator and these actors, who have become essential in the digital transformation and the promotion of financial inclusion. This initiative is part of the promotion of financial innovations.

Ecobank Transnational Inc has published its activity table for the first quarter of fiscal 2022. According to the document signed by Ade Ayeyemi, Chief Executive Officer of Ecobank Group, solid results were recorded in the first quarter of 2022. Despite the challenging operating environment, the bank ended the quarter with pre-tax income up 25% to $EU 125 million, diluted earnings per share up 29% to 0.27 cents $EU and net banking income growth of 7% to $EU 436 million.

The African Development Bank will invest $10.6 million in African start-ups. The institution wants to strengthen its investments in technology companies in Africa. The funds will be directly invested in the Cathay AfricInvest Innovation Fund which is a venture capital vehicle created by AfricInvest to invest in Africa-focused start-ups. The Fund will in turn target some twenty companies in sub-Saharan Africa, operating in promising sectors on the continent such as financial services, insurance, retail, logistics, health and energy technologies.

THE BRITISH bank Barclays has sold half of its stake in Absa bank. The transaction concerns the sale of 7.4% of the capital through an accelerated bookbuild (ABB). The sale brought in nearly £526 million, or $687 million to Barclays. The net proceeds of the transaction will be used for the general business needs of the UK banking group.

Souleymane Niane, president of the association of insurers of Senegal said that in 2020, the 29 companies in Senegal achieved a turnover of "207 billion FCFA. This sum is divided into non-life insurance for 134 billion and life insurance for 72 billion. As for the payment of claims, these 29 companies have mobilized a total of nearly 60 billion CFA francs. In terms of contribution to the national economy, these 29 companies have "invested in the Senegalese economy more than 400 billion FCFA," said Souleymane Niane.

Intervened at Radio Okapi on Tuesday, March 26, the president of the Association of Insurance and Reinsurance Companies of Congo (ASAR), Vincent Mwepu,  reported that the insurance industry received about $221 million in premiums, in 2021. It also estimates that if the insurance industry is well regulated, it can generate around USD 800 million in premiums or more for the country.

Financial Crimes

Oumar Sow, CEO of Odis group, has been placed under arrest warrant and another international warrant is issued against one of his accomplices, Mansour Bouna Ndiaye. Criminal association, fraud, money laundering, forgery and use of forgery, thus establishes the list of charges against the alleged culprits in the case of embezzlement of the three billion. Of the total amount embezzled, 300 million, would have passed into the hands of Me El Mamadou Ndiaye, the new mayor of Thiaroye-sur-mer, member of the opposition and the coalition Yewwu Askan Wi.

In Benin, elements of the republican police dismantled in Tankpè in the commune of Abomey-Calavi an online scam network with appeal to the public. 18 officials of the structure were placed under warrant of detention and the others on the run are sought. This network has set up a form of scam already known as QNET. The victims are 143 and mainly cameroonian nationals.

Postfinances is still affected by a case of fraudulent transfers. According to press reports, customer accounts have been emptied to feed others opened recently. A complaint was filed with the Urban Security by the interim CEO of Postfinances, Abdoul Aziz Diallo. To this end, the brothers Abdoulaye, Mamoudou and Abdoul Wahab Dème and the named Ousmane Diallo (who had deposited 20,000 FCFA in his account before pocketing 11 million FCFA) were picked up and referred last week. They are prosecuted for criminal association, illegal access to and maintenance in a computer system, transfers, withdrawals and attempted fraudulent cash withdrawals, fraud involving public funds.

Seven people, including Burkinabe customs officers and gendarmes, have been brought to prison in connection with fuel trafficking investigations for the benefit of armed terrorist groups. They were placed under arrest warrant at the Maison d'Arrét et de Correction de Ouagadougou (MACO).

Governance

The international financial rating agency Standard & Poor's has maintained the rating of B+ assigned to the Republic of Benin, with a stable outlook. Standard & Poor's highlights the strong growth prospects, driven by the government's ambitious reforms, despite a deteriorating global economic environment. After maintaining the dynamism of its economy in 2020, with growth of 3.9% according to Standard & Poor's, Benin recorded a very marked economic recovery in 2021, at +7.2%, one of the best performances in the region.

Regional Growth

The World Congress of the World Association of Public Employment Services (WAPES) was held from 25 to 29 April in Tallinn, Estonia, on the theme: Challenges and innovative actions of public employment services in an ever-changing labour market. On the occasion, the new members of the Board of Directors were elected during the General Assembly. The presidency of WAPES is held by Morocco, for the period 2022-2025, thus continuing the work started in 2018.

The Inter-Parliamentary Committee of the States of the West African Economic and Monetary Union (WAEMU) kicked off its 31st extraordinary session on Tuesday, April 26, 2022 in the Senegalese capital, Dakar. For five days, parliamentarians will focus on the WAEMU Community Mining Code, its energy hubs and its regional digital development programme.

The second edition of the Cyber Africa Forum (CAF) will be held in Abidjan on 9 and 10 May. At this meeting, public and private actors meet to reflect on how to deal with the new cybersecurity risks, which are real obstacles to growth in Africa. The chosen theme, "Digital sovereignty and data protection, levers of economic growth for the African continent".