Exchange Market

The US dollar and Treasury yields have recovered following a hawkish stance by the US Federal Reserve. The dollar was heading for a fifth week that was a winner over its main counterparts. The euro recovered 0.16% to $1.0558 but failed to move away permanently from its five-year low reached at the end of April at $1.0472.

The yen, which had fallen to a two-decade low a week ago at 131.25 yen, was down 0.19% to 130.44 yen. The pound lost 0.22% to $1.2335 per pound, after falling to $1.2276, the lowest since mid-2020. Against the euro, the pound fell 0.37% to 85.60 pence to the euro, after reaching 85.66 pence, the lowest since the end of 2021.

Cryptomonnaies

Unjointed by the economy, bitcoin, which plunged Thursday to its lowest in more than two months, fell 0.7% to 36,202 dollars. On Friday morning, bitcoin was trading around $36,485, nearly 8% below its level the day before.

First competitor of bitcoin, ether was at 2745 dollars, down 7% compared to the previous day, while solana, polkadot or avalanche, have all suffered a double-digit contraction in the last 24 hours.

Current markets

At the end of the trading session on Thursday, May 5, 2022, the indices of the Regional Stock Exchange (BRVM), remained in the red zone. The composite index recorded a decline of 0.65% to 216.14 points against 217.56 the day before. As for the BRVM 10 index, it fell 0.17% to 167.51 points against 167.80 the day before. The market capitalization of the equity market, it experienced a decline of 42.775 billion FCFA, to 6506.385 billion FCFA against 6549.160 billion FCFA the day before. That of the bond market, on the other hand, remained stable at 7737.337 billion FCFA. The total value of the transactions stood at 1.255 billion FCFA against 601.787 million FCFA at the end of the listing day of May 4, 2022.

The Central Depository/Settlement Bank (DC/BR) has received funding from the African Development Bank Group (AfDB) for the development of the capital market. The DC/BR intends to use part of the sums granted under this donation to announce the services of consultant (Firm) for the creation and operationalization of a digital platform to automate the management of public offering operations. The services planned under this contract mainly include four activities including the design, installation and operationalization of the digital platform to manage public offering operations on the primary market of the West African Economic and Monetary Union (WAEMU).

Monet Market

Golgolgol obtains 33 billion FCFA of stimulus bonds at the level of the financial market of the West African Monetary Union (WAMU). This is at the end of an issue of 10-year Treasury stimulus bonds (DSBs) held on Friday, April 29, 2022. After auction, the overall bids amounted to 40.031 billion CFA francs out of a requested amount of 30 billion CFA francs. This gives a coverage rate of the amount put out to tender of 133.44%. The amount of tenders selected amounted to 33 billion CFA francs and the rejected one was 7.031 billion CFA francs. This gives an absorption rate of 82.44%.

Prime materials

Gold prices have fallen slightly. Spot gold fell 0.1% to $1,875.66 an ounce, at 0307 GMT, while U.S. gold futures were flat at $1,875.40. The bullion has fallen about 1% so far this week. In other metals, cash fell 0.5% to $22.38 an ounce and was on track for a third consecutive weekly decline. Platinum slipped 2.7% to $953.90 and palladium 0.6% to $2,174.95.

Tiré by the proposed European embargo, oil rose on Friday, continuing its previous rise. The barrel of North Sea Brent for delivery in July rose 2.00% to $113.12. The barrel of US West Texas Intermediate (WTI) for delivery in June took 1.92% to 110.34 dollars.

The Central Bank of West African States (BCEAO) reveals an increase in the prices of the main raw materials exported by the countries of the West African Economic and Monetary Union (WAEMU) in March 2022. According to BCEAO data,  the prices of these raw materials have risen to varying degrees. Thus, the price of coffee recorded an increase of 51.6%, cotton (+42.7%), rubber (+23.3%) and gold (+13.3%).

This year, CotonTchad distributed about 700 million CFA francs in rebates to cotton farmers.  A kind of bonus granted to cotton farmers when the price of cotton increases on the world market. 40% will be granted on a pro rata basis to producers, 20% to the National Union of Cotton Producers, 20% to the cotton company and 20% to the support fund for the cotton sector.

Companies

The Shareholders of the Société Ivoirienne de Banque are convened to the General Meeting acting on an ordinary basis on Monday, May 18, 2022. Shareholders who would actually like to attend the Shareholders' Meeting by videoconference, to be identified and receive the ad hoc link, must first inform the Chairman of the Board of Directors by e-mail or by registered letter with acknowledgment of receipt.

Bolloré Transport & Logistics Côte d'Ivoire has announced the imminent inauguration of a modern logistics base with a total area of 9,000 m2 in the Abidjan airport area . This investment is part of the projects implemented to modernize logistics infrastructure in Côte d'Ivoire. Within this new platform, adjustments will also be made to facilitate the  packaging of pharmaceutical products and offer value-added storage for all types of  freight, including perishable goods intended for the Ivorian market or European countries.

For the quarter ended March 31, 2022, MTN Nigeria, a subsidiary of south African telecom group MTN, published its financial results on Friday, April 29. The data shows a profit up 31%, or N97 billion (USD 234 million) in the first quarter of 2022 compared to N74 million (USD 178 million) in the corresponding period of 2021. Voting revenues amounted to N218.41 billion (USD 527 million), up 5% during the reporting period.

In the first quarter of 2022, TotalEnergies reports adjusted net income of $9 billion.  The rebound in energy prices observed in the second half of 2021 was amplified in the first quarter of 2022 following Russia's military aggression against Ukraine, with oil prices exceeding $100/bbl and gas prices in Europe and Asia historically high above $30/Mbtu in the quarter. The Company generated cash flow of $11.6 billion and free cash flow of $5.8 billion. Its debt ratio has fallen to 12.5% and its return on average capital employed is 18%.

CFAO Motors Côte d'Ivoire, specialized in the distribution of motor vehicles, boosts its profit by nearly 3 billion FCFA in 2021. After a decrease of 1.476 billion FCFA in 2020, the company's profit after tax increased at the end of the 2021 financial year compared to the same period of the previous year. The provisional financial statements made public by the directors of this company suggest a profit of 6.710 billion FCFA against 3.779 billion FCFA at 31 December 2020.

Banks and Insurance

In the first quarter of 2022, Lagos-based commercial bank United Bank for Africa Plc (UBA) reported a profit up 9%. The data shows a profit of N42 billion (USD 101 million), up 9%. This performance is due to the improvement in interest income, trading income and commission income. Net interest income increased by 14%, from N74.38 billion (USD 179 million)  to N84.87 billion (USD 204.5 million) for the current period.

The WAEMU interbank market recorded a decline in the volume of securities traded during the month of March 2022. According to the Bceao, the average weekly volume of operations, all maturities combined, fell from 581.3 billion in February 2022 to 577.5 billion in March 2022, a decline of 0.7%. The weighted average rate came out at 2.53% in March 2022 against 2.50% the previous month.

Moussa TOURÉ, previously Deputy Managing Director in charge of development at Banque Atlantique Mali, replaces Habib BLÉDOU, who has been called to other positions within the Group. The appointment dates from the last Board of Directors of the Bank, a subsidiary of the BCP Group, held on 17 February 2022.

The German group Allianz has announced that it has entered into a partnership with the pan-African giant Sanlam. This collaboration will make it possible to form a joint venture that will bring together their assets on the continent, outside South Africa. This joint venture will house sanlam and Allianz's business units in African countries where both companies, or at least one of them, have a presence.

Financial Crimes

The international independent body Coficert has issued BGFIBank Gabon with AML 3000 (Anti-money Laundering (AML) index 30000) certification. AML 30000 is an international certification standard designed to combat money laundering, terrorist financing and arms proliferation (LCB/FTP). This certification demonstrates the bank's commitment to ensuring greater transparency of financial transactions. BGFIbank Gabon thus becomes the first to receive this certification in Gabon and the second of the group.

West financial regulator, the Financial Conduct Authority (FCA) has published a damning report on neobanks and their link to acts of financial crime. The banking policeman seeks to assess the risks posed by "neobanks" in terms of money laundering and terrorist financing. These new digital players offer a fully remote relationship and account opening in minutes. Without disclosing the names of the institutions audited, the FCA concludes, following its 2021 investigation, that "the weaknesses found create an environment conducive to greater risks of financial crime".

The German judiciary announced that searches were underway at the headquarters of the country's largest bank Deutsche Bank, in Frankfurt, in a money laundering investigation. This measure is "in connection with reports on suspicions of money laundering", said the bank, adding that it "cooperates fully with the authorities".

Ocune d'Ivoire, through the National Financial Information Processing Unit (Centif) receives computer equipment in the context of the fight against money laundering and the financing of terrorism. This donation was made by the United Nations Office on Drugs and Crime (UNODC). The batch of computer equipment includes computers, scanners, printers, hard drives, inverters, firewalls, lightning rods, splits, with a total cost of 25 million FCfa, financed by the German Embassy in Côte d'Ivoire.

A Senegalese living abroad was arrested in Spain for embezzlement of 205,000 euros, or 135,448,588 FCFA of social assistance. The respondent had been engaged in his activity for 10 years. He  allegedly fraudulently received social assistance with false identities.

Regional growth

Regional institutions are preparing to set up an instrument to support African SMEs. On the sidelines of the International Digital and Innovation Forum (FONI 2022), the boss of Afrik Créances, Blaise Ahouantchedé lifts a corner of the veil on the 1st Regional Single Window and an impulse fund for SMEs and SMIs (GURFI). The structure, with a regional vocation, could take care of financing issues and "constitute an integration instrument that supports actors to access financing".

The International Forum for Intermediation, Digital and Innovation was held on 5 and 6 May 2022 in the Togolese capital. Participants discussed the evolution of banking and financial intermediation as well as the issue of financial inclusion in WAEMU member countries.

In partnership with the Interregional Coordination Centre (ITC) in Yaoundé, Cameroon, the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy, have reached agreements in the framework of the 5th plenary of the Gulf of Guin Maritime Collaboration Forum For Shared Awareness and Deconfliction (GOG-MCF/SHADE). The MCF/SHADE Plenary of the Gulf of Guinea is being held in Abuja on 10-11 May under the theme "Sustainable Security".

The economic forum, called "Business forum" will be held from 16 to 17 June 2022, in Abidjan. Under the theme "Transforming West African economies through a strengthened partnership between the European and West African private sectors", this forum should contribute to increasing Côte d'Ivoire's attractiveness potential for private investors and stimulate trade between countries. the Community of West African States (ECOWAS) and the European Union.

The fifth edition of the Benin Investment Forum will be held from 23 to 24 June 2022 in Cotonou. Placed under the theme: Benin New Frontier of Emerging Markets, the two days of the forum are dedicated to business opportunities in Benin. It is intended to be a space of high-level panels presenting investment opportunities in Benin, the incentives offered by the Government of Benin, alternating with networking sessions, deal-rooms dedicated to investment projects.