Foreign exchange market

Set for its best year since 2015, the dollar was supported by an improving US economy and persistent inflation that led to a restrictive turn by the Fed, which is now expected to start raising interest rates as early as the month. Of March. The euro, which is the largest weighting in the dollar index, is down just over 7% in 2021. While the pound sterling has reached its highest level against the euro since February 2020, it has fell just over 1% against the dollar over the year. Finally, the year was marked by the fall of the Turkish lira, which lost around 44% against the dollar in its worst year in two decades, battered by runaway inflation and the unorthodox monetary policy of the Turkish government. .

At the end of this first week of the year 2022, the euro rises a little in a cautious market. The European currency strengthened a little against the dollar and the pound hit a five-week high on Wednesday in a market with limited risk appetite amid lingering concerns over the Omicron variant of Covid-19. The dollar was up slightly at the start of the session against the European currency but then reversed the trend. The pound hit $1.3486, up 0.39% against the greenback, a five-week high.

Cryptocurrencies

Amid widespread cryptocurrency selling, bitcoin fell 5% on Friday to its lowest level since late September, dropping below $41,000. The world's largest cryptocurrency was lately down 3.7% after hitting $40,938, its lowest since September 29. Ether, the second-largest token by market cap, fell as much as 8.6% to $3,114, its lowest since Oct. 1.

Goldman Sachs analyst Zach Pandl said in a client research note that bitcoin will take market share from gold in 2022 as digital assets become more widely adopted. Goldman Sachs estimates that the cryptocurrency currently holds a 20% share of the “stores of value” market. Bitcoin was trading around $46,073 on Wednesday, after falling sharply in early December. By November, it had hit an all-time high of $69,000.

Stock markets

The Regional Stock Exchange (BRVM) set new records during the year by crossing the threshold of CFAF 6,000 billion in equity market capitalization. As of December 31, 2021, the capitalization of the stock market of the eight countries of the West African Economic and Monetary Union (UEMOA) stood at 6085.4 billion CFA francs. At the same time, that of the bond market reached 7,247 billion CFA francs, i.e. annual increases of 39.33% and 19.76% respectively. The BRVM 10 index closes the year up 17.29% and the BRVM Composite up 39.15% compared to 2020, confirming the upward cycle that began in the first months of 2021, breaking the trend decline observed since 2016. The value of transactions is estimated today at 722 billion CFA francs, an increase of 293% compared to the year 2020. In the same dynamic, the Central Depository / Settlement Bank (DC / BR) on the regional financial market saw a significant increase to CFAF 13,830 billion in assets under custody, up 26% compared to 2020.

The very first session of the Regional Stock Exchange (BRVM) at the beginning of the year took place in a contrasting situation. At the end of the trading session on Monday January 3, 2022, the main indicators of the Regional Stock Exchange (BRVM) recorded a decline. The total value of transactions fell sharply, standing at 155.992 million FCFA against 676.914 million FCFA the day before.

Money Market

The State of Burkina Faso, through its General Directorate of Treasury and Public Accounts, raised an amount of 36.500 billion FCFA (54.750 million euros) at the end of its issue of assimilable treasury bonds (BAT) of maturity 364 days organized in partnership with UMOA-Titres based in Dakar. Out of an overall auction amount of 35 billion FCFA, the issuer found itself with 45.037 billion FCFA of overall bids from investors, representing a coverage rate of the amount auctioned of 128.68%. After auction, the Burkinabe Public Treasury withheld 36.500 billion FCFA and rejected the remaining 8.537 billion FCFA, representing an absorption rate of 81.04%.

Raw materials

The Organization of the Petroleum Exporting Countries announces that the Joint Technical Committee (JTC) of the Statement of Cooperation (DoC) signed by OPEC and non-OPEC members (OPEC+), held its 58th meeting on Monday, via videoconference, to examine world oil market conditions. In a statement posted on its website, OPEC Secretary General Mohammad Sanusi Barkindo stressed “the need to remain highly agile and adaptable to the ever-changing oil market situation”. Referring to OPEC's monthly oil market report, OPEC's Sg noted that global oil demand is expected to reach 100.6 mb/d in 2022, surpassing pre-pandemic levels. For the moment, oil, which has been rising for four days, continues its upward momentum. Fears of an escalating social crisis in OPEC+ member Kazakhstan, as well as a still tense situation in Libya, supported prices in a market already concerned about a shortfall in supply.

The year 2021 was marked by the recovery of the world economy and demand driven by the reopening of economies and a massive influx of money, from which agricultural raw materials have largely benefited overall. Coffee has truly exploded this year with a 71% rise in Robusta prices and 76% for Arabica at historically high levels. Cotton posted its biggest annual percentage gain since 2010. The year was also buoyant for palm oil with a gain of 30.7% in 2021. On the other hand, it was not very favorable for cocoa. .

Official figures published by the Coordination Committee for the Coffee and Cocoa Sectors (CCFCC) reveal that coffee and cocoa exports have fallen for the 2020-2021 campaign in Togo. In terms of marketing, the fall is estimated at more than 23% for coffee, the volume of which is 2,000 t against 2,600 t in 2020. The quantity of cocoa marketed, meanwhile, stood at 5,400 t in 2021 against 10 600 t a year ago, reflecting a drop of around 50%.

In Ghana, cocoa transporters from the various warehouses of Cocobod's subsidiary, the Cocoa Marketing Company (CMC) have started an indefinite strike to obtain better conditions of service and a salary increase. Godwin Ocansey, one of the leaders of the Cocoa Carriers in Tema informs Joy Business that for 4 to 5 years wages have not increased for the cocoa carriers.

Companies

Janngo, the digital social entrepreneurship platform founded by Senegalese Fatoumata Bâ, raised €10.5 million at the end of December for its pan-African fund for technology startups, Janngo Start-Up Fund. This first round of fundraising benefited from the participation of the African Development Bank (AfDB) to the tune of €7 million and $3.5 million from the European Union and the Organization of African, Caribbean and Peaceful.

Ghanaian health tech startup mPharma announced Thursday (January 6th) that it has raised $35 million in Series D funding. Backers provided $30 million in equity, while Citigroup approved a $35 million loan. 5 million USD for the company. The new funding is intended to continue the expansion of the startup in Africa, but also to deploy an e-commerce platform for pharmaceutical products.

Banks and Insurance

The African Development Bank, through the Sustainable Energy Fund for Africa (SEFA), has approved a $1 million grant to facilitate Botswana's transition. This financial package aims to support the country in clean energy. The Technical Assistance Project is providing support to the Government of Botswana to address critical gaps in policy, regulatory and legal frameworks identified during the Africa Energy Market Place (AEMP 2019).

The Bank of Central African States (BEAC) has already launched the process of appointing a consultant who should be recruited this year. In addition, it announces the establishment of a digital platform to facilitate the collection of data from insurance companies within the sub-region. The digital data platform will be used to track control and scoring reports, a scoring system. For his part, the consultant will be responsible for finalizing the deployment of geolocation systems and the planning of controls; management of control reports; and consultations and alerts.

Acting Managing Director of ARB Apex Bank Plc since July 26, 2021, Alex Kwasi Awuah has been confirmed as head of the 'mini' central bank in charge of Ghana's 145 rural and community banks by the Bank's Board of Directors. of Ghana (BoG), the country's central bank. The new director officially took office on January 1, 2022 for a term of 4 years.

The reinforcement of the South African group Sanlam in the share capital of Saham Assurance Maroc announced last May will not take place. This is according to a press release published on Tuesday, January 4 by the insurer. This announcement comes in a context marked by the discussions initiated by Sanlam with the German insurer Allianz for the acquisition of the entire group in Africa with the exception of South Africa.

The insurance brokerage specialist Afma takes control of the Ivorian firm ACR (Assureurs Conseil Réunis). Afma claims to have the ambition to make ACR one of the leaders in insurance brokerage in Côte d'Ivoire, in particular thanks to the know-how that the Moroccan broker will bring and the commercial synergies that will be created between the two firms.

Financial crimes

Sweden's economic crime authority announced on Tuesday that the former CEO of Swedish bank Swedbank Birgitte Bonnesen will be tried for "aggravated fraud", two years after revelations of money laundering against the bank. The ex-CEO is being prosecuted for money laundering and "aggravated market manipulation".

Regional growth

Digital financial services in UEMOA recorded good performance during the year 2020. The Bceao reveals in its annual report on the evolution of digital financial services in UEMOA-year 2020 that forty-two (42) initiatives to issue money via mobile telephony were recorded in the Union as of December 31, 2020, with in particular the entry of five (5) new establishments. The overall number of service points increased by 30.72% to 1,071,390 at the end of 2020, compared to 819,608 at the end of 2019. With regard to access, specifies the BCEAO, the number of currency accounts electronics stood at 94.23 million, compared to 76.9 million in 2019, an increase of 22.43%.

The Umoa-Titres agency, a specialist in the management and promotion of public securities in the UMOA (West African Monetary Union) zone, announced that the 4th edition of its monthly meeting has the theme "Portfolio management in the Uemoa: performance lever for investments on the MTP (public securities market, editor's note). Scheduled in the city of Lomé from January 25 to January 27, 2022, this edition will be an opportunity to present the program of issues of public securities issued by auction for the year 2022 to players in the regional debt market”.