The foreign trade of WAEMU countries resulted in an overall surplus balance of 1,142.5 billion FCFA (i.e. 1.713 billion euros) in 2018, according to data from the Central Bank of East African States. West (BCEAO).

In 2017, this overall balance recorded a surplus of 304.1 billion FCFA, an improvement of 838.4 billion FCFA. "This consolidation of external balances is linked to the improvement in net inflows of resources in the capital and financial accounts, which more than offset the effects of the deterioration of the current account", explains the BCEAO in its 2018 annual report.

The current account deficit increased by 10.2%, to stand at 4,470.2 billion FCFA in 2018, due to the deterioration of 716.0 billion in the balance of the balance of goods. As a percentage of GDP, this deficit would stand at 6.4%, after 6.3% in 2017.

For goods, the issuing institute points out that the trade deficit has worsened, due to an increase in imports (+8.3%) stronger than that of exports (+4.3%) . “The dynamics of imports are linked in particular to the increase in the oil bill, following the rise in the price of petroleum products, coupled with the increase in the purchase of capital and intermediate goods.
The increase in investment expenditure in the WAEMU, particularly in construction works, explains most of the increase in purchases of capital and intermediate goods.

As for exports, their progress is attributable to the rise in sales of cotton (+32.2%), oil (+26.1%) and gold (+9.2%). For cotton, the rebound observed is linked to the impact of reforms in the countries of the Union, particularly in Benin, where a volume increase of 32.6% is expected in 2018.

With regard to oil, the increase in sales abroad is attributable to the evolution of prices. For gold, this is a volume effect in a context of falling prices.

However, the increase in exports in WAEMU in 2018 is mitigated by the drop in receipts on cocoa (-6.8%), uranium (-34.1%), rubber (-14.0%) , coffee (-10.7%) and cashew nuts (-7.2%), following the decline in international prices in a context of rising volumes for rubber, coffee and cashew nuts.

Regarding cocoa, the BCEAO notes that the trend observed is attributable to the decline in volume, after the record levels recorded in 2017.

The deficit in the balance of services deteriorated by 2.1%, in connection with the increase in the freight bill (+14.5%). The primary income deficit balance, for its part, improved by 1.0%, in line with the decline in dividend payments to foreign investors. This development is, however, mitigated by the increase in interest payments on the public debt. As for secondary income, it increased by 13.9%, under the effect of the expected increase in remittances from migrants.

“With regard to the capital account, analyze the services of the Central Bank, its surplus increased by 12.3% compared to the previous year, in relation in particular to the consolidation of project grants in most Member States. of the Union”.

The financing need stood at 3,109.8 billion FCFA, up 9.4% compared to 2017. According to the issuing institute, this need is covered up to 129.2% against 116.6% in 2017, by net capital inflows in the financial account, which increased by 21.2% in one year.

The significant increase in the financial account in 2018 is attributable to the issuance of Eurobonds by Côte d'Ivoire and Senegal for a net amount of 2,010.9 billion CFA francs. The consolidation of the financial account is also supported by the increase in public drawings (+26.5%), particularly in Benin.

“In terms of private capital flows, foreign direct investment, particularly in the mining and oil sectors, also increased (+13.8%)”, informs the BCEAO.