Foreign exchange market

Before the German legislative elections, the euro ended the week on a note that remained stable against the dollar on Friday, September 24, 2021. In this climate, traders are turning to the legislative elections which will be held on Sunday. The British pound, for its part, stabilized (-0.02% to 85.57 pence against the euro, -0.05% to 1.3713 dollars for one pound against the greenback) after gaining 0, 7% against the dollar the day before. The Chinese Yuan down with Evergrande while the safe-haven Yen held up. Investors seek to protect themselves from a possible failure of the Chinese company Evergrande. The New Zealand dollar also fell after the central bank's deputy governor threw cold water on expectations of a 50 basis point rate hike next month.

Cryptocurrencies

In an effort to ride out the wave of cryptocurrency popularity, central banks around the world are exploring ways to create versions of digital currencies. The first economy of the African continent announces that a digital version of eNaira will be launched on October 1st.

Money Market

Three countries of the sub-region were on the financial market of the West African Monetary Union (UMOA) this week. The State of Togo raised an amount of 66 billion FCFA (99 million euros) at the end of its issue of recovery bonds (ORD) of the Treasury with maturities of 7 and 10 years. Thanks to the issuance of Treasury Bonds (BAT) called "support and resilience bonds" with a maturity of 364 days, Burkina has raised an amount of 45.500 billion FCFA (68.250 million euros). Niger's Directorate General of Treasury and Public Accounting issued assimilable Treasury bonds (BAT) called "support and resilience bonds" with a maturity of 364 days, which enabled it to raise on September 23, 2021 a amount of 75 billion FCFA (112,500 million euros).

Stock market

The indices of the Regional Stock Exchange (BRVM) ended the week in the green. The two BRVM indices recorded progress which strongly impacted the market capitalization of the market. The BRVM 10 index thus rose by 1.22% (against 0.15% on Wednesday) to 144.84 points against 143.09 points the day before. As for the BRVM Composite index, it also recorded an increase of 1.14% (against 0.28% previously) to 183.94 against 181.87 points the day before. This improvement in the indices had a positive impact on the market capitalization of the equity market, which increased from 62.361 billion FCFA to 5535.731 billion FCFA against 5473.370 billion FCFA the day before. That of the bond market, it is again down by 5.616 billion FCFA standing at 7080.437 billion FCFA against 7086.053 billion FCFA the day before. The total value of the transactions stood at 717.866 million FCFA against 760.217 million FCFA the day before.

Raw materials

The Nigerian government has given approval for the daily production of 1.88 million barrels of crude oil per day (bpd), 2.23 million bpd and 2.22 million bpd for the years 2022, 2023 and 2024 respectively” given the average of 1.93 million bpd observed over the past three years.Recall that Nigeria, a member of OPEC, produced 1.47 million bpd in 2021 following an agreement within the organization of oil-producing countries to reduce their production.

Ghana hosts bauxite reserves estimated at 900 million tons. It exported only 1.16 million tons last year. Rocksure International will build a bauxite mine estimated at $200 million at Nyinahin-Mpasaaso in the center of the country, as well as a bauxite refinery worth $1 billion. In this context, the Ghanaian public company Ghana Integrated Aluminum Development Corp (GIADEC) announced the signing of a $1.2 billion agreement with the local mining services company.

The Ivorian Minister of Agriculture, Kobenan Kouassi Adjoumani and the Chinese company Tbea have signed a partnership as part of the raw cashew nut processing and storage process. This agreement will enable Côte d'Ivoire to ensure the best storage and preservation conditions for products using the Agricultural Commodities Exchange through warehouses and silos. Under the Warehouse Receipts (Sre) system, 108 modern raw cashew nut processing and storage warehouses and 60 grain storage silos will be constructed in all cashew producing areas of Côte d'Ivoire .

The National Institute of Statistics (INS) reveals that between January and June 2021, Cameroon exported an overall cargo of 76,202 tonnes of cotton, up 61.8% from the 47,099 tonnes exported during the same period in 2020. The volume of revenue thus generated makes cotton the 5th largest provider of export revenue in the country (7%) during the period under review, tied with sawn wood.

Companies

The management of the West Africa Rating Agency (WARA) has awarded the long-term rating in investment grade "BBB+" with a stable outlook to the Ivorian agro-industrial group SIFCA, a company that operates in the fields of natural rubber. , palm oil and sugar. The short-term rating is “w-4” with a stable outlook. These ratings reflect SIFCA's leading position in its benchmark activities, good governance of the agro-industrial group, backed by a clear vision and strategy, reinforced by permanent support from its shareholders.

To support the transition to a regenerative food system, Nestlé is taking several regenerative actions. These plans are launched under the name of “Generation Regeneration” focused on farmers, young people and its own employees. Together with its food system partners, including its network of more than 500,000 farmers and 150,000 suppliers, Nestlé wants to advance regenerative farming practices at the very heart of the food system.

Banks and Insurance

The Board of Directors of the West African Development Bank (BOAD) met by videoconference for its 125th ordinary session. Under the presidency of Serge EKUE, Chairman of the Board of Directors, Chairman of BOAD, several loans were approved up to 60 billion FCFA. This involves the construction of a logistics platform at the level of the agro-food pole of the Greater Nokoué conurbation, in Abomey Calavi; the extension and modernization of the network of the Société Holding Togolaise des Communications Electroniques (TOGOCOM) SA in Togo; the establishment of a third line of refinancing in favor of the Union des Caisses Mutuelles KAFO JIGINEW and the renewal of a partial counter-guarantee of a short-term guarantee granted by Société Générale Côte d'Ivoire ( SGCI) to Côte d'Ivoire Energies (CI-ENERGIES). The amount of the operation is 10 billion FCFA.

Ecobank Côte d'Ivoire seems well on its way to setting a new profit record. The pre-tax profit of the third largest banking asset in UEMOA stands out with an increase of 31% compared to the end of June 2020, while its net profit, meanwhile, increased by 18%, to 14.74 billion FCFA. ($26.8 million). Thus, the income of the financial intermediary increased by 8.2% to 42.3 billion FCFA, supported by a revival of activities on foreign exchange transactions. Non-interest income (net commissions) having increased by 50.9% to 13.4 billion FCFA against 8.9 billion FCFA in June 2020, mitigated a 4.4% drop in interest income on operations with the customer base. Third bank in UEMOA in terms of assets and deposits, Ecobank CI continued to consolidate its position during the first half of this year.

Deutsche bank lends 3 billion FCFA for phase 1 of the drinking water supply project for Buea, Tiko and Mutenguene localities in Cameroon. The signing of the credit agreement took place between the Minister of Economy, Alamine Ousmane Mey and the Managing Director of Export Finance-Deutsche Bank, Humaya Harati. The Drinking Water Supply Project for Buea, Tiko and Mutenguene localities aims to improve the living environment, state of health and socio-economic conditions of the populations, through the design of a water supply program realistic, sustainable and adapted to their incomes and their environment.

As part of its development strategy, the Nsia Group recently signed an agreement with the Sanlam Group. With the acquisition of four insurance subsidiaries belonging to the Sanlam Group, the NSIA Group is strengthening its positioning, its volume of activity, its equity and its profitability. According to a press release, this operation, subject to the validation of the supervisory authorities of Cima, Cemac and the Central Bank of the Republic of Guinea, is an important step for the development of the Nsia Group in Togo, Gabon, Congo and Guinea. It consolidates its leading position in bancassurance in West and Central Africa.

Despite the health crisis, the growth of the insurance market in Senegal continued in 2020, rising from 193 billion in 2019 to 204 billion FCFA in 2020. This resilience of the insurance market in the face of COVID is also found in Côte d' Ivoire, the largest market of CIMA, the common organization of French-speaking black African countries sharing the same insurance standards. Business there grew by 391 to 415 billion FCFA between 2019 and 2020 (+6.1%) with, as in Senegal, a higher dynamism of life subscriptions (+6.9%) compared to property and casualty premiums (+4%). ). The same resilience is not found in Cameroon and is much less marked in Gabon, since, in these two largest markets in Central Africa within CIMA, premiums increase to 210 and 100 billion CFA francs respectively, in 2019 to 207 and 104 billion CFA francs in 2020, i.e. a decrease of -1.4% in Cameroon and 4% in Gabon.

Financial crimes

The businessman who became the best contributor to the national budget, the best employer, Sébastien Ajavon, the politician who came third in the 2016 presidential election in Benin continues to spend dark hours. In the case of record tax adjustment of 167 billion CFA francs which opposes one of its companies to the Taxes, the villaduplex of Sébastien Ajavon located not far from the airport and which serves as his office has also just been seized.

The Basel Institute of Governance has published its ranking which is based on the legal systems established by countries in terms of financial crime. Thus, Morocco is ranked 4 ᵉ in the Arab world for the fight against money laundering. The international report of the organization based in Switzerland accuses Morocco of several shortcomings in the fight against money laundering. Despite the strengthening of the legal arsenal, Morocco obtained a score of 5.32. This ranks it 51st in the world out of a total of 110 countries, and fourth at the regional level.

The fight against money laundering, terrorist financing and the proliferation of weapons of mass destruction in a coordinated and aligned manner involves all entities of the economy. Thus, the Financial Information Unit (UIF) of Angola authorized, in 2020, the blocking of 47 bank accounts, belonging to entities involved in various investigative processes. The account blocking allows the control of more than seven million euros.

Advocating "zero tolerance" against the corruption of the police in Côte d'Ivoire, the military court arrested around forty police and gendarmes for racketeering on the roads. They will be tried in October. This trial will be held within the framework of operations "punch" against corruption in public services, launched in recent months by the Ministry for the Promotion of Good Governance and the Fight against Corruption.

At Kotoka International Airport in Accra, Ghana's intelligence service, the National Intelligence Bureau (NIB), arrested a 42-year-old man with 656 ATM cards connected to nine banks in Ghana and Nigeria. Named Bachir Musa Aminou, the arrested man had a Nigerian passport in his possession and was completing the departure formalities for Dubai. According to reports, he arrived in Ghana on August 20, 2021 in transit to Dubai.

Regional growth

The second congress of lawyers of the West African Economic and Monetary Union (UEMOA) was organized this week under the theme “Justice and corruption”. For the chairman of the Burkina Bar Association, Me Paulin Salembéré, who is also chairman of the congress organizing committee, the mere mention of corruption makes people turn their gaze, rightly or wrongly, to justice, "no not necessarily that it is the environment where it prospers the most, but given the role it plays in tracking down actors of corruption and the place it occupies in improving democratic governance”.

In a context marked by the desire to revive African economies after Covid-19, a new edition of the Africa Investment Forum will be organized from December 1 to 3, 2021 in Côte d'Ivoire and will bring together several investors, project promoters and decision makers. They will assess investment opportunities in several projects in different sectors including: agriculture and agri-food, energy and climate, health, ICT and telecommunications, as well as industrialization and trade. .