Foreign exchange market

Between the European Central Bank (ECB) which will adopt a much more cautious tone next week and the position of the Federal Reserve (Fed) expected on Wednesday, the euro fell against the dollar on Friday to its lowest since June 2020. Faced with the British pound, the euro also lost 0.09% to 83.21 pence per euro, and approached its lowest since February 2020 reached in mid-January at 83.05 pence.

Cryptocurrencies

On Friday, the star of crypto-currencies, bitcoin, which had hit a six-month low on Monday at $32,970, stabilized around $35,000 and rose 0.8% to $36,478 on Friday.

NFTs are the digital assets that have been going up for several weeks. In 2021, the market for non-fungible tokens, or NFTs, has grown significantly, to the point that it is now valued at $50 billion.

Separately, the world's largest cryptocurrency exchange for Eastern Europe, Binance is looking to expand into Russia and neighboring states where it sees prospects for new regulations that will boost its business.

Stock markets

The BRVM plans for 2022 to go digital to attract more investors and promote its activities, through the launch of a TV platform. This platform will aim to promote the BRVM and make itself better known to investors. Its implementation is part of a logic of digitalization of the institution's services this year 2022, with the aim of attracting investors and boosting the activities of the stock exchange.

During the review of 2021 activities by videoconference on Tuesday, January 25, 2022, the Director General of the Regional Stock Exchange (BRVM) announces a market capitalization of 6,400 billion CFA francs at the end of 2022. The BRVM plans for 2022 to promote the attraction to the stock market listing of new listed companies, two new admissions planned, 23 companies approached (including 5 already committed for an introduction to the Third Compartment), creating innovative, highly technological and digital products and services, which are in line with the needs investment from regional and international investors.

On Thursday January 27, 2022, at the end of the trading session, the performance indices of the Regional Stock Exchange (BRVM) recorded a sharp increase. The index of 10 leading stocks (the BRVM 10) rose by 1.22% to 152.90 points against 151.06 points the day before. For its part, the composite index rose by 0.52% to 201.27 points against 200.22 points previously. The total value of transactions amounted to 2.334 billion FCFA against 2.041 billion FCFA the day before. For its part, the market capitalization of the equity market increased by 31.696 billion FCFA to 6058.709 billion FCFA against 6027.013 billion FCFA previously. On the other hand, that of the bond market is still down by 10.969 billion, at 7268.869 billion FCFA against 7279.838 billion FCFA the day before.

Money Market

On January 25, 2022, the State of Guinea-Bissau raised an amount of CFAF 11.359 billion at the end of its issue of assimilable treasury bonds (OAT) with a maturity of 5 years on the financial market of the West African Monetary Union ( WAMU). These funds raised aim to mobilize the savings of natural and legal persons in order to cover the financing needs of the Guinea-Bissau State budget.

Through its General Directorate of Treasury and Public Accounting, Niger raised on January 27, 2022 an amount of 33 billion FCFA (49.5 million euros). It was at the end of its issue of bonds assimilable du Trésor (OAT) with a maturity of 3 years on the financial market of the West African Monetary Union (WAMU). The funds raised aim to mobilize the savings of natural and legal persons in order to cover the financing needs of the budget of the State of Niger.

Raw materials

The next meeting of OPEC+ (Organization of the Petroleum Exporting Countries and its partners) is scheduled for February 2. Meanwhile, oil prices continued to rise on Friday after a short break due to the rising dollar. The price of a barrel of Brent from the North Sea for delivery in March gained 0.54% to 89.82 dollars. In New York, a barrel of West Texas Intermediate (WTI) for same-month delivery was up 0.40% at $86.96.

Data from the specialized American site, Business Insider, reveals that the oil reserves of the 10 African countries with the largest oil reserves are estimated at 122.5 billion barrels. It is Libya which has, by far, the largest oil reserves with an estimate of 48.4 billion barrels. It is followed by Nigeria with reserves estimated at 36.9 billion barrels of oil. Algeria, Angola and Sudan follow well behind with 12.2 billion, 7.8 billion and 5 billion barrels of oil reserves respectively. This African top 10 is completed by Egypt (3.3 billion barrels), Congo Brazzaville (2.9 billion barrels), Uganda (2.5 billion barrels), Gabon (2 billion barrels ) and Chad (1.5 billion barrels).

During the 2nd meeting of the steering committee of the Côte d'Ivoire-Ghana cocoa initiative, the actors mobilized to boost production for the benefit of producers. The participants are committed to a strong institution based on multidisciplinary skills for efficient control of cocoa production in the two countries.

In hybrid mode, the 3rd edition of the International Cotton and Textile Show (SICOT) took place from January 27 to 28, 2022. This edition is placed on the theme "Local cotton processing: what industrialization models for the Africa within the framework of the African Continental Free Trade Area (ZLECAF)? ".

Nestlé Côte d'Ivoire, a subsidiary of the Swiss agri-food giant, launched Thursday in Abidjan, an income acceleration program for cocoa producers. This project will improve the working and living conditions of 10,000 farmers over the period 2022-2023. A so-called "deployment" phase should make it possible over the period 2024-2030 to reach 160,000 households, overall. The program aims to address the challenges of sustainable cocoa production.

Companies

The startup specializing in artificial intelligence and born in Tunisia, InstaDeep announced on Tuesday that it had raised 100 million dollars (88 million euros) from investors including the German laboratory BioNTech. According to a press release from the firm, the fundraising will be used to "continue to recruit the best talents in AI and to accelerate the development of products (...) in biotechnologies, logistics, transport and electronics".

Sweden welcomes its first electric battery factory. Built by Northvolt, the giga-factory is located 800 kilometers north of the capital, in Skelleftea, a former mining town of 70,000 inhabitants. The Swedish group will produce enough to equip 300,000 electric vehicles with batteries each year and by 2023 its production capacity will have increased to reach the possibility of equipping one million vehicles each year.

West Africa Rating Agency (WARA) assigns an “A” rating to TotalEnergies Marketing Côte d'Ivoire. This rating is one notch below the Ivorian national ceiling, which according to WARA stands at “A+”. TotalEnergies Marketing Côte d'Ivoire's short-term rating is “w-3”. The outlook attached to these ratings is stable.

As part of its ongoing efforts to support high-potential SMEs in the region during this crisis and the businesses that finance them, the USAID-funded West Africa Trade & Investment Hub on Monday (January 24th) awarded a co-grant - $2.5 million investment in the African Guarante Fund for Small and Medium Enterprises (AGF).

Banks and Insurance

The African Development Bank (AfDB) signs a financing agreement with SIPH, a subsidiary of the SIFCA Group. With a total cost of 12.5 million euros, this financing completes the financing round of the 85 million euro loan agreement granted by a Banking Pool led by Société Générale and Proparco at the end of year 2020. It will make it possible to continue SIPH's development plan and in particular to finalize the construction of the new natural rubber production plant in SOUBRE, NAWA region, by its Ivorian subsidiary SAPH, and to accelerate the implementation other projects for the development of the value chain of the sub-regional leader in agro-industry are underway.

Orabank Togo received support from the GuarantCo fund in the form of a portfolio guarantee for an amount of 14.55 billion XOF (approximately 25 million USD). The guarantee allows Orabank Togo to be able to strengthen its financing capacity in sectors such as infrastructure, telecommunications and also the financing of SMEs/SMIs.

In Cameroon, the subsidiary of the UBA group has considerably reduced the weight of its bad debts in one year. The group founded by Nigerian Tony Elumelu has reduced the weight of its bad debts by nearly 30 percentage points in Cameroon. As of October 31, 2021, the share of outstanding debts of the Cameroonian subsidiary of the United Bank for Africa group (11.4 billion FCFA or approximately $20 million) fell to 5.16% of the total loans that the institution granted to non-financial companies (221.1 billion FCFA), according to the report on the banking market in the country, published by the Bank of Central African States (BEAC).

The Federation of African National Law Insurance Companies (FANAF) has announced that African member insurers will hold their ordinary general meeting for the year 2022 from February 24. This meeting will focus on the adoption of the accounts closed on December 31, 2021 and the 2022 budget. It concerns members up to date with their contributions.

In order to boost intra-African trade, the African Export-Import Bank (Afreximbank) has developed the Pan-African Payment and Settlement System (PAPSS). This initiative will save Africa more than $5 billion a year in payment transaction costs, while accelerating transactions on the continent. The PAPSS is a pan-African platform that will allow companies and governments to trade with each other instantly, transparently, and in local currencies between the different African markets.

Financial crimes

Transparency International published its 2021 report on Tuesday, January 25, 2022. The document shows that levels of corruption remain at a standstill around the world, with 86% of countries having made little or no progress over the past of the last ten years. In sub-Saharan Africa, 44 of the 49 countries assessed on the index still score below 50. With an average score of 33 out of 100, sub-Saharan Africa shows no significant improvement on the Corruption Perceptions Index (CPI ) 2021.

In Congo, the bill on the prevention and fight against assimilated offenses was adopted on January 24 by the Senate and the National Assembly. This legislation aims to provide the Republic of Congo with an effective legal arsenal in this area. The new law adopted has the advantage of being more in line with CEMAC community law, the regional law of the African Union and the requirements of the United Nations.

The 20th Conference of Heads of State and Government of the Economic Community of Central African States (ECCAS) gave rise to several resolutions aimed at combating terrorism and maritime piracy. Among other things: the organization as soon as possible of an International Maritime Conference to intensify the fight against maritime insecurity and the extraordinary meeting of the African Union on terrorism, violent extremism, cross-border and national insecurity in Africa.

Financial crime in the UK has reached critical levels, according to a study by the NGO Spotlight on Corruption. Corruption, money laundering or fraud cost the country's economy £290 billion every year. The study indicates that prosecutions for money laundering have fallen by 35% over the past five years, as has the number of investigations opened or the number of people convicted. Some state agencies have seen their budgets decline in real terms.

Uganda is on the list of countries with significant deficiencies in the area of anti-money laundering. The information was revealed by the Executive Director of the Finance Intelligence Authority, Sydney Asubo, who said the consequences are serious because being on the gray list means that the whole world is aware that the country is struggling. to fight against money laundering.

Governance

Four states in the WAEMU zone have received sovereign ratings from the West Africa Rating Agency (WARA). The rating of the Republic of Benin on the WARA regional scale (A-/Stable/w-3) is underpinned by its proactive structural economic policy, improving governance indicators, public debt under control and its position as a sub-regional trade hub. The rating of the Republic of Burkina Faso on the WARA regional scale (BBB-/Stable/w-4) is fueled by the prudent nature of the short-term economic policies of its authorities, particularly in terms of public debt, which is under control. The rating of the Republic of Côte d'Ivoire on the WARA regional scale (A/Stable/w-3) is based on the size of its economy (40% of sub-regional GDP), its high diversification and the very sustained pace of its growth, despite health constraints and the volatility of commodity prices. The rating of the Republic of Guinea-Bissau on the WARA regional scale (BB-/Stable/w-5) is constrained by a small economy, highly dependent on the cashew sector, a degree of competitiveness and of attractiveness limited by a tumultuous political history although in the process of stabilization a priori, a growing public debt and very perfectible governance indicators.

Regional growth

In 2020, despite the impact of the pandemic on trade, the member countries of the West African Economic and Monetary Union (UEMOA) were able to meet the challenge of exporting their goods and services, particularly raw materials. Thus, exports from WAEMU member countries increased by 0.5%, with Côte d'Ivoire as the leading country for an export rate of 40.8%. The UEMOA foreign trade report for the year 2020 published by the Central Bank of West African States (BCEAO), indicates that the total exports of goods in value of the countries of the WAEMU stood at 17,753 billion CFA francs in 2020. That is to say, an increase of 0.5% compared to the level recorded in 2019.

The new ECOWAS study on the socio-economic impact of COVID-19 shows that extreme poverty in West Africa increased by almost 3% in 2021. The proportion of people in the region living on less than $1.90 a day fell from 2.3% in 2020 to 2.9% in 2021. Worse, the debt burden of countries in the region has increased amid a slow economic recovery, a shrinking fiscal space and weak resource mobilization.