Foreign exchange market

The European currency is at its highest since early January against the dollar. So the euro benefits, analysts believe that it is difficult to predict how the dollar will react, between a negative effect linked to inflation, or positive linked to the reaction of the Fed. The yuan continues to rise while the Japanese yen suffers from its safe haven status in a market that favors risky assets.

Cryptocurrency

Cryptocurrencies remain in trouble as Chinese efforts against exchanges, but also mining, take effect. Chinese authorities now refer to them as "counterfeit currencies".

Money Market

The State of Benin, through the General Directorate of Treasury and Public Accounts, raised this May 27, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 66 billion FCFA (99 million euros) following its simultaneous issuance of a 3-year Treasury bond (ORD).

In addition, the Teyliom group of Yerim Sow raises funds by securitizing its real estate receivables. In total, 20 billion CFA francs were collected in order to make the Teyliom Group a reference investor on the African continent, innovative and proactive. With a maturity of 84 months and a net rate of 6.86%, this transaction of securitization of receivables on rental income will enable the Group to finance the development of its activities for an amount of XOF 20 billion.

Stock market

The Regional Stock Exchange (BRVM) returned to strong transactions this week. The total value of the transactions thus stood at 2.635 billion FCFA. The transacted value of the bond market stood at 1.721 billion FCFA. The market capitalization of the equity market is still on the rise since May 20, 2021, but the bond market has fallen a little.

Like its investors, the directors of Ecobank Côte d'Ivoire, one of the most profitable banks on the Regional Stock Exchange (BRVM) will also benefit from the dividends of a positive 2020. As in 2020, the second largest subsidiary of the group based in Lomé plans to disburse 250 million FCFA gross this year for function allowances to directors.

Raw materials

Oil raises its head and monitors the Iranian nuclear negotiations. Oil prices are recovering on Monday after losing around 3% the previous week. This trend was continued on Friday thanks to encouraging US data for demand from the world's largest crude consumer.

In the Council of Ministers on Wednesday, the Ivorian government decided to allocate 20% of exports of coffee and cocoa beans to national exporters and processors. According to government spokesman Amadou Coulibaly, this council decision aims to promote the emergence of national champions and create the conditions for the sustainability of their activity.

Companies

The Ivorian company Sucrivoire once again appeals to BRVM investors. Stock market gains are back, but also a positive outlook. In the first quarter of 2021, Sucrivoire declared having made a net profit of 4.7 billion FCFA. This is 35% more than that of the same period in 2020. The second quarter of 2021 is also marked by encouraging results.

For its part, the Sonatel group has just significantly increased its expansion strategy in the sub-region. The Senegalese telecommunications operator has signed a management agreement for Sbin with Benin, thus concretizing the decision taken on March 24 to entrust the delegated management of this company to the Sonatel group. The objective entrusted to the Senegalese operator is to make it “quickly operational”.

Banks and Insurance

The Central African Banking Commission (COBAC) has authorized BANGE Bank to open a subsidiary in Cameroon. This authorization suggests that BANGE has complied with the conditions laid down in this regard, in particular the release of all of the share capital to 10 billion FCFA where, in addition to the Equatoguinean government which controls the majority of the capital of the BBC, there is also an acquisition of stakes by private Cameroonians. The inauguration is scheduled for August 2021.

Under the chairmanship of Serge Ekue, President of the West African Development Bank (BOAD), the 123rd ordinary session of BOAD's Board of Directors approved 4 financing proposals for a total amount of 95 billion FCFA, a proposal for the reorganization loan conditions and a short-term line of credit in favor of BOAD. These new approvals bring to CFAF 6,430.2 billion, the total commitments (all operations combined) of BOAD since the start of its operational activities in 1976.

The World Bank has approved additional financing of 6 billion FCFA for Carrier Hotel. This fund aims to support digital connectors and infrastructure, as part of strengthening Togo's connectivity and developing its digital economy.

The Bank of Central African States (Beac), issuing institution of the six CEMAC countries (Cameroon, Congo, Gabon Chad, CAR and Equatorial Guinea), has made available to banks operating in this community space , a liquidity envelope of 250 billion FCFA. The central bank is maintaining its initial weekly envelope for the benefit of credit institutions, despite the increase in demand from banks observed since the start of 2021.

The President of the Islamic Development Bank (IDB), Dr. Bandar Hajjar and the CEO of the Arab Bank for Economic Development in Africa (BADEA), Dr. Sidi Ould TAH, have signed a landmark agreement aimed at boosting the co-financing of development projects in common member countries in Africa. The signed agreement concerns co-financing over the period 2021-2024. It includes several areas including private sector development and trade finance.

Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group, held its 33rd Annual General Meeting (AGM) and Extraordinary General Meeting online on May 27, 2021. The shareholders of the first pan-African bank present in 34 countries, approved in particular the renewal of the directorships of MM. Alain Nkontchou, Brian Kennedy and David O'Sullivan for a period of three years. They also ratified the cooptation of Mr. Hervé Assah, as director, for a term of three years ending on the third anniversary of his cooptation as director.

In terms of results, the BGFIBank Group had an exceptional year in 2020 with a record performance. The banking institution achieved a consolidated net result up 114% compared to 2019, according to data published during the group's Annual General Meeting held in Libreville. Its total balance sheet is 3,516 billion FCFA.

During its 140th session of the Board of Directors, the National Bank for Agricultural Development (BNDA) announced a total balance sheet of approximately 1.055 billion USD for the year 2020. The leader in financing the agricultural sector injected 213 billion CFA francs into the financing of agriculture, including 6 billion CFA francs for farmers' organizations, 190 billion (383 million USD) CFA francs for agro-industries and input suppliers.

Also, Standard Chartered Bank Kenya announced that it recorded a net profit of 2.39 billion shillings for the year ended March 2021. The increase was 18.9%. Regarding net interest income, it fell by 2.8% to 4.59 billion shillings, while the loan portfolio decreased by 3%. For its part, non-interest income rose 11% to 2.48 billion shillings to compensate for the reduction in net interest income.

In the insurance sector, the insurance company Saham Assurance changes its name and becomes Sanlam Benin. A rebranding in the midst of a crisis which demonstrates that the insurance sector is doing well and that the big brands are still in good health. With the same values but even more professionalism and commitment, Sanlam is at the service of populations to enable them to live in complete confidence.

Governance

During his inaugural speech, the Head of State, Patrice Talon lifted a corner of the veil on the projects to be implemented during this second and final mandate. One of the projects he intends to tackle is that of drinking water. It also announces energy autonomy, infrastructure through the strengthening of the road network, the social and the education system through the construction of around a hundred technical high schools and reference trade schools, of which more than half are 'by the end of 2023.

On the Malian side, members of the Malian army arrested President Bah Ndaw, Prime Minister Moctar Ouane and Defense Minister Souleymane Doucouré from the country's interim government after a reshuffle. According to REUTERS, this act accentuates the political chaos in the country after the military coup last year.

Financial crimes

The 23rd meeting of the Ministerial Committee of the Intergovernmental Action Group against Money Laundering in West Africa (GIABA) considered and adopted, among others, the activity reports of the Director General, the Sub-Committee on revision of the GIABA statutes, the reports of the extraordinary plenary of April 2021 and of the 35th meeting of the technical commission. It also ruled on the Mutual Evaluation report of the second round of the Republic of Benin, the memorandum on the GIABA efficiency improvement program initiated by the FATF: implication for Member States and role of the Ministerial Committee as well as as the report of the ministerial committee meeting.

The Global Forum on Transparency and Exchange of Information for Tax Purposes of the Organization for Economic Co-operation and Development (OECD) published its latest report on Africa on May 26, 2021. The document reveals that between 50 and 80 billion dollars a year escape African states. More than 34 million euros have been recovered in 2020 and more than 1.2 billion since 2009.

A federal grand jury has announced the indictment of former Chadian ambassador to the United States, Mahamoud Adam Béchir and his deputy, Youssouf Hamid Takane. They are accused of corruption and money laundering.

The French bank BNP Paribas is suspected of having laundered tens of millions of euros of public money from Gabon. His indictment was pronounced by an examining magistrate of the financial center of the Paris court.

Regional growth

In a dynamic of economic sovereignty, the Alternative Report on Africa informs that the single currency of ECOWAS, as it has been designed so far, would only be a symbolic alternative to the CFA franc. According to the RASA, the single currency of ECOWAS will not be able to allow a sovereign mobilization of resources. It would not allow better mobilization of domestic resources since it is based on the same monetarist logic as the CFA franc.

The first meeting between the Secretariat of the Banking Commission of WAMU and the General Managers of large Decentralized Financial Systems (SFD) served as a framework to announce some figures on the financial inclusion of the populations of WAMU, in particular those most vulnerable and generally excluded from traditional financial circuits. While the number of DFS clients increased from 6.9 million in 2010 to 15.9 million in 2020, the share of the active population using microfinance services increased to stand at 22% in 2020 against 15 % in 2010.

The Benin part of the Benin-Niger pipeline project was launched in Sèmè-Kpodji. The infrastructure will leave Agadem in Niger for the terminal station of Sèmè-Kpodji. There will be two pumping stations at Gogounou and Tchaourou and an export terminal on the high seas. The 1980 km long pipeline is full of great opportunities for the two countries concerned. Also, the municipalities crossed by the pipeline, namely Kandi, Malanville, Gogounou, Bembérékè, Ndali, Ouèssè, Tchaourou, Parakou, Savè, Kétou, Adja-Ouèrè, Pobè, Sakété, Ifangni, Avrankou, Adjarra and Sèmè-Kpodji will host the construction of socio-community infrastructures. During the construction phase, 3,000 jobs will be created and after two years of work, there will be 300 permanent jobs in the operation of the pipeline.