Exchange Market

The dollar stabilizes this Friday against the euro after an eventful week. The greenback has moved away from its peaks against the single currency as well as against other currencies. The Dollar index, which compares it to other major currencies and had hit a 20-year high seven days earlier, lost 1.6%, its biggest weekly decline since February. The yuan was trading Friday at 6.6723 yuan to the dollar, moving away from its lowest since September 2020, reached seven days earlier at 6.8125 yuan.

For its part, the Russian ruble reached on Friday its highest levels against the euro and the dollar since June 2015 and March 2018 respectively. The South African rand rose in early trading on Friday, maintaining gains made in the previous session.

Cryptomonnaies

In Nigeria, an African country where the use of cryptocurrencies is already relatively popular, travelers will soon be able to buy their bitcoin tickets at the emirates airline. The airline, which operates daily flights between Lagos, Abuja and Dubai, said last week that it will integrate bitcoin as a form of valid currency in exchange for airline tickets, and that it will also make it possible to exchange NFT collectibles on its website.

KuCoin, a cryptoasset trading platform based in Seychelles, indian Ocean, said it has raised $150 million, as part of a funding round aimed at its next stage of growth and expansion. According to a statement from the company, the deal now values the company at more than $10 billion.

A few months after leaving Meta, where he ran financial services, David Marcus returns with a start-up in the crypto world: Lightspark. For now, Lightspark remains a mystery. By looking at the Lightning Network, David Marcus continues what he initiated at Meta, while freeing himself from the constraints of a large group.

Biti scam victims angry for the umpteenth time. They are more than 70 victims of the bitcoin scam, hand on head demonstrating peacefully in front of the Nigerian Embassy in Chad. On the banners held by these victims, we can read "We victims of scam of the future planning company bitcoin claim our money with the Chadian state", "the Nigerian Embassy in Chad is complicit".

In addition, the Banking Commission of Central Africa (COBAC) recalls in a statement, the ban on crypto-assets within the Economic and Monetary Community of Central Africa (CEMAC). These prohibitions relate in particular to the subscription and holding of crypto-currencies "of any kind whatsoever for own account or on behalf of third parties, the exchange or conversion, settlement or hedging in currency or CFA franc of transactions relating to or related to crypto-currencies".

Current markets

At the end of its trading session on May 19, 2022, the Regional Stock Exchange (BRVM) recorded its fourth consecutive day of decline in its two flagship indices. The composite index fell 0.51% to 207.72 points against 208.79 points the day before. The BRVM 10 index recorded a decline of 0.23% to 161.51 points against 161.89 points previously. The market capitalization of the equity market recorded a decline of 32.192 billion FCFA and that of the bond market appears to be down by 1.415 billion FCFA. The value of transactions stood at 587.911 million FCFA against 1.808 billion FCFA the day before.

The Nigerian Exchange Limited (NGX) joins African exchanges to facilitate the cross-border trading platform and free movement of investments on the continent. In total, four exchanges were successfully connected to the live environment of the Link trading terminal.

Prime materials

Oil prices stabilized Friday stuck in a high price range. The barrel of North Sea Brent for delivery in July lost 0.24% to $111.77. The barrel of US West Texas Intermediate (WTI) for delivery in June, which is the last day of listing, fell 0.33% to $ 111.84.

The price of European natural gas lost more than 7% over the week, falling below 90 euros per megawatt hour.

The price of gold has reached its highest level. Spot gold was up 0.2% to $1,845.67 an ounce around 1,033 GMT, after climbing about 1.9% in the last session.

Castainment added 0.5% to $22.01 an ounce, and rose about 4.4% on the week. Platinum rose 0.2% to $964.71, while palladium fell 0.3% to $2,001.57. Both were set for weekly earnings.

According to the U.S. Department of Commerce, global wheat production is expected to decline for the first time in four years. Already severely disrupted since the start of the war in Ukraine, wheat supply could become even more problematic. On Monday, in Chicago, the bushel of grain (about 25 kg) jumped 6% to $11.70. On the Paris futures market, the ton of soft wheat rose up to 5.11% in the morning to reach 439.25 euros, an all-time high in the session. Corn is up 34% since the beginning of the year, soybeans are up 25%.

In its latest "Monthly Oil Market Report" published on Thursday, May 12, the Organization of the Petroleum Exporting Countries (OPEC) announces that Nigeria's oil production posted 1.3 million b/d in April 2022, compared to 1.5 million b/d in the same period in 2021. According to the cartel, Nigeria is recording a 13% drop in its domestic production year-on-year.

The Interprofessional Cotton Association of Burkina Faso (AICB) has taken stock of the past cotton campaign and announced the colors of the one that is starting soon. Despite the various difficulties encountered, the national cotton production of the 2021-2022 season is rising. to 518,545 tonnes. For the upcoming 2022-2023 season, the AICB has set itself the goal of producing 700,000 tonnes of conventional seed cotton and 2,500 tonnes of organic and fair trade cotton.

Companies

The activity report made public by the management of the Ivorian company Sucrivoire S.A, indicates a net profit up 28% at the end of the first quarter of 2022 compared to the first quarter of 2021. This result increased from CFAF 4.753 billion at March 31, 2021 to CFAF 6.069 billion at March 31, 2022. Turnover increased by 25% to CFAF 20.959 billion against CFAF 16.782 billion in the first quarter of 2021.

SAFT, a subsidiary of TotalEnergies, has just been awarded a contract by Eiffage Energie Systèmes for the supply of a 10 MW energy storage system (ESS) to the Boundiali photovoltaic solar power plant in Côte d'Ivoire. The energy storage system provided by SAFT will strengthen the capacity and smooth the intermittent production of boundiali's 37.5 MW solar power plant, operated by Côte d'Ivoire Energies.

The Syrse OMOA group launches its activities in Togo, through the company Operator Payment System, based in Lomé. The launched center is equipped with the latest technologies and certifications, in particular, pci DSS certification, relating to the protection of data related to the credit card and also meets the regulatory requirements of the BEAC and the BCEAO.

Malteries Soufflet opens in the Bole Lemi Industrial Park in Addis Ababa, Ethiopia. Located on 10 hectares on the outskirts of Addis Ababa, Soufflet Malt Ethiopia enjoys a strategic location, close to malting barley crops. Equipped with state-of-the-art infrastructure, the malting plant has an annual production capacity of 60,000 tons per year and aims to reach 110,000 tons in the short term.

The African Guarantee Fund for Small and Medium Enterprises (AGF West Africa S.A.) contributes to support SMEs, women's entrepreneurship and the green economy in Burkina Faso. It granted a portfolio guarantee line for a total amount of CFAF 2.5 billion to Societe Generale Burkina Faso. This portfolio guarantee is backed by the AFAWA Guarantee for Growth program, which aims to unlock up to $3 billion in loans to women-owned SMEs in Africa.

Banks and Insurance

In african Development Bank President Akinwumi Adesina has declined calls for him to run in Nigeria's 2023 presidential election. He noted that he remains fully committed and dedicated to the mission that Nigeria, Africa and all non-African shareholders of the African Development Bank have entrusted to him for Africa's development.

Oragroup's managers published a notice of convening of the ordinary and extraordinary combined general meeting in Lomé on 25 May 2022. The Annual General Meeting will have to approve the Company's summary financial statements for the financial year ended 31/12/21 as well as the special report of the Statutory Auditors on the regulated agreements referred to in Articles 438 and 440 of the AUSCGIE. It will also have to decide on the approval of the evaluation report of the Board, its committees and each of its members and on the fixing of directors' function allowances for the 2022 financial year.

The Board of Directors of the West African Development Bank (BOAD) met face-to-face in Dakar, Senegal. This 130th ordinary session authorized new commitments for an amount of 98.56 billion FCFA. The beneficiary countries are : Burkina Faso, Benin, Senegal and Côte d'Ivoire. These new approvals bring BOAD's total commitments (all operations combined) since the start of its operational activities in 1976 to CFAF 6,845.8 billion.

Albeforth, the rating agency Fitch Ratings has confirmed BOAD's 'BBB' rating with a stable outlook. Fitch's assessment of the average rating of the loan portfolio increased from "B" to "B-" in the previous review, in line with the increase in credit risk.

The Ivorian Bank Company (SIB), a subsidiary in Côte d'Ivoire of the Moroccan group Attijariwafa Bank, experienced a less dynamic beginning of 2022, due to government loans that have become unprofitable. Compared to the same period in 2021, the financial group, for the 3 months that ended at the end of March, reported a 10% decline in income from activities on securities issued by the State. Its net banking income, although having reached the comfortable level of 21.8 billion FCFA ($35 million) is up 3% compared to the 11% increase observed during the first quarter of 2021.

Ecobank Côte d'Ivoire closes the first quarter of 2022 with a Net result, increasing steadily, estimated at FCFA 8.49 billion. This result is explained by the decrease in net interest margin (-4.9%), coupled with that on non-interest income. Despite a slight decline of 6.2% in Net Banking Income, or 21.2 billion compared to the same period of the previous year, Ecobank maintains its position as the second largest bank in Côte d'Ivoire.

The Chairman of the Board of Directors of Générale des Assurances (GA),  Harouna Sawadogo has sent a notice of the ordinary general meeting of shareholders on Monday, May 30, 2022.  eacute;release on the draft agenda. These include the focus of the report of the Board of Directors to the Ordinary Shareholders' Meeting on the financial statements for the year ended 31 December 2021 and the examination of the General and Special Reports of the Statutory Auditor on the accounts for the financial year 2021.

Financial Crimes

Ahmed Idris, the Comptroller General of Public Finance is no longer free to move. He allegedly embezzled nearly €184 million by carrying out "illegal activities using agents, family members and close associates". He failed to respond to multiple summonses from the anti-corruption agency. He was placed under surveillance by the agency and arrested in Kano on Monday 16 May.

A Cameroonian passenger was intercepted at SSR airport by officers of the Customs Anti-Narcotics Section with false currency and four false paseports. In the suspect's suitcase, all the equipment for the manufacture of counterfeit notes, among others, was stored. A total of 409 sheets of paper – printouts of the dollar note and the €500 note – fixing salt, a bottle of alcohol at more than 70 degrees, a bottle of glue, a fake US passport and three fake international passports were found.

The head of network at the Yup agency in Touba and Thiès, Mor Guèye Sine was facing the judge of the correctional chamber of Dakar. Prosecuted for acts of fraud, forgery and use of forgery in bank writings and money laundering, Mor Guèye Sine will be fixed on his fate on June 23. The latter has collected 371 million F Cfa from traders and has created a life of richard.

Regional growth

According to the Latest World Bank Briefing Note on Migration and Development published on May 11, 2022, $49 billion was sent to sub-Saharan Africa in 2021 by migrants. The multilateral cooperation institution indicates that the transfer of funds represents an increase of 14.1% compared to 2020 after a decrease of 8.1% in 2019. The cost of sending $200 to the region averaged 7.8% in the fourth quarter of 2021, down slightly from 8.2% in 2020.

Placed under the theme "Financing Africa's Recovery: Innovate", the 2022 Session of the Economic Commission for Africa (ECA) rehashed the corollaries of the health crisis related to the Covid-19 pandemic. Faced with this unprecedented economic shock, Senegal's President Macky Sall said in his opening speech that a complete overhaul was needed. Finding innovative financing solutions is the need of the hour. Before the Covid-19 pandemic, economists estimated that African countries would need $200 billion a year to achieve their Sustainable Development Goals. Now that amounts to $354 billion a year. An additional $285 billion is needed over the next five years to ensure an adequate response to the pandemic.