Foreign exchange market

The euro retreated a little after a week of rebound. The fall against the US dollar came as investors cashed in on profits after favoring the single European currency on expectations of a breakthrough in talks between Russia and Ukraine.

The Japanese yen fell (-0.29% to 118.94 yen) and approached its lowest since January, at 119.12 yen. The Russian ruble stabilized (+0.32% to 102.13 rubles per dollar) but remained down 20% since the start of the conflict.

Cryptocurrencies

Scalable Capital is launching an all-in-one investment platform in France, allowing users to broker on the stock market, simplify the purchase of cryptocurrencies and set up investment plans. The FREE Broker makes it possible to set up investment plans in shares and ETFs, without commission, but also to carry out transactions without commission on more than 700 PRIME ETFs from partners.

Stock markets

The Regional Stock Exchange (BRVM) started the week with a decline in key indicators. At the end of the trading session of this Thursday, March 17, 2022, the Regional Stock Exchange recorded transactions of more than 3 billion FCFA. The value of these transactions was indeed established at 3.371 billion FCFA against 1.358 billion FCFA the day before. In terms of indices, we note a consolidation of the improvement of the day before. The BRVM 10 index thus recorded an increase of 0.39% to 162.04 points against 161.41 points previously. For its part, the composite BRVM index gained 0.23% to 215.02 points against 214.52 points the day before.

The WAEMU regional financial market adopts a governance code for companies listed on the BRVM. This tool is the result of collaboration between the BRVM and the International Finance Corporation (IFC). The adoption of this Code is an important step in the process of maturation of the WAEMU Regional Financial Market which, at the same time, appropriates the standards conducive to the sustainable development of companies.

The Green Bond Exchange will soon be operational in Ghana. Initiated by Orla Enright and Diana Boadu Amoatin, the Green Exchange, the Green Bond Exchange, intends to raise $2 million by July to build a virtual debt and equity platform. The Green Exchange expects 5 billion dollars of green bond issues over the next 5 years, mainly in Nigeria, Ghana and Kenya.

Money Market

Senegal carried out a fundraising operation on March 11, 2022 which enabled it to collect 55 billion FCfa on the UEMOA financial market. For this operation, the total amount of bids amounted to 95.374 billion FCfa, representing a coverage rate of 173.41%. Between January 1 and March 11, 2021, Senegal was able to make five issues for a total amount of FCfa 240 billion, according to data from Umoa-titres.

Following a 91-day issue by auction of assimilable treasury bills (BAT), Niger obtained on March 10, 2022 an amount of 33 billion FCFA at the level of the WAEMU financial market. The issuer had auctioned 30 billion FCFA. The overall amount of bids stood at CFAF 37 billion, representing a rate of coverage of the amount auctioned of 123.33%.

The public treasury of Burkina Faso collected 25.327 billion FCFA at the level of the WAEMU financial market. It was at the end of an issue of assimilable treasury bonds (BAT) with a duration of 364 days. The amount of the overall bids stands at 26.180 billion FCFA and that put up for auction at 25 billion FCFA. This gives a rate of coverage of the amount auctioned of 104.72%.

Raw materials

Washington puts an embargo on Russian oil. As a result, the price of black gold has shown quite exceptional volatility this week.

On Friday, prices were up, consolidating their price above 100 dollars a barrel, boosted by the ongoing war in Ukraine and the stalemate in negotiations between Moscow and kyiv. The barrel of Brent from the North Sea for delivery in May took 1.01% to 107.72 dollars. A barrel of West Texas Intermediate (WTI) for April delivery gained 1.13% to 104.14 dollars.

At the end of a mission carried out in Abu Dhabi, the Cocoa Coffee Council of Côte d'Ivoire announces the conquest of the Middle East and Asia. Thus, the CCC foresees a representation for Asia and the Middle East, which could be based in Abu Dhabi.

Companies

The start-up INVESTIV, a company specializing in precision agriculture consulting, won the 5th prize (bronze) of the 2nd edition of the "Tremplin Startup UEMOA" competition initiated by the Economic Union Commission and Monetary Affairs of West Africa (UEMOA), in collaboration with the Regional Consular Chamber of UEMOA (CCR-UEMOA) and the National Consular Chambers (CCn) of the Member States of the Union.

Banks and Insurance

The World Bank grants a loan of 95 billion FCFA to upgrade Cameroon's social protection system. It is also a question of offering better job prospects to young people in precarious situations in urban areas. This project will benefit poor households and young people between the ages of 18 and 35 living in urban areas, with internally displaced persons representing a significant proportion of the beneficiaries. It should reach 217,500 direct beneficiaries and have a positive impact in terms of poverty reduction and job creation for the households and communities concerned.

The Bretton Woods institution is also disbursing €132.6 million to increase access to electricity services for households, businesses and essential public facilities in Senegal. This funding from the International Development Association (IDA) is part of the implementation of the project to improve access to electricity in Senegal (Padaes). It aims for universal access by 2025 to electricity at an affordable cost for all Senegalese households, in both rural and urban areas.

The members of the Board of Directors of the West African Development Bank (BOAD) held their 129th ordinary session on Wednesday March 16, 2022. The exchanges which were held in hybrid mode made it possible to approve overall financing of 63.735 billion FCFA for 3 WAEMU countries. Senegal received overall financing of 25 billion FCFA. Hydro-agricultural development with intelligent and climate-resilient agricultural practices (PAHA-AIC) in the Republic of Niger received support of 7 billion FCFA. 21.735 billion FCFA was disbursed for these works which will ensure the opening up of the area in order to facilitate economic, social and cultural exchanges at the national and sub-regional level.

Standard Bank Group Ltd has announced that it expects to mobilize between 250 and 300 billion rand (16.5 billion USD and 20 billion USD) in sustainable finance by the end of 2026. The banking establishment indicates that it will not finance no more new construction of coal-fired power plants, nor expansion of the generation capacity of existing coal-fired power plants.

The Bank of Central African States (BEAC) informs that loans granted by banks and financial institutions in the countries of the Economic and Monetary Community of Central Africa (Cemac) experienced a sharp decline between January 1 and June 30, 2021. The new credits put in place by the banks of the CEMAC space also fell by more than 760 billion FCFA.

The African Development Bank (AfDB) has just given a boost to actions to combat decarbonization in African economies and to promote just energy transition. More than 30 million dollars have been released in this context, or 18 billion CFA francs.

In Togo, the Pan-African Bank is making a donation of 237 million FCFA as part of the project to digitize public offering operations (APE) on the primary market of the Regional Stock Exchange (BRVM). The digitization project aims to set up an automated solution to “manage the operational processes of the APE subscription phase”.

While the war has been raging in Ukraine since the end of February, insurers specializing in the transport of goods, particularly by sea, are reviewing their conditions of cover against the risk of war and are increasing their prices. Companies transporting goods may have insurance against war risks. However, maritime carriers can take out protection against these risks with major specialized insurers.

Governance

The American rating agency Fitch Ratings has given its opinion on Gabon's level of indebtedness, the stock of which currently represents 6,500 billion francs, according to the latest figures from the General Debt Directorate (DGD). According to Fitch, despite the high level of government debt vis-à-vis its internal and external partners, Gabon's debt is more or less under control, and should decrease over the next two years. In its latest review on the assessment of the risks posed by the national economy on a global scale, the rating agency estimates that the public debt / GDP has decreased to 70% in 2021, against 77.4% in 2020, mainly due to the increase in nominal GDP.

Financial crimes

The Intergovernmental Action Group Against Money Laundering (GIABA) has released a report on “Risks and Vulnerabilities in the Casino and Gambling Sector in West Africa”. The GIABA Assessment Report (2021), entitled Money Laundering: Risks and Vulnerabilities in the Casino and Gambling Sector in West Africa, indicates that casinos are not subject to control and no framework currently exists to control their activity. Contacts between the casinos and the CENTIF are almost non-existent. The illegal activity of casinos constitutes for the country, according to the report, a puzzle which deserves to be solved. The sector needs guidelines.

The Nigerian Economic and Financial Crimes Commission (EFCC) has arrested Osondu Victor Igwoli, a Nigerian suspected of embezzling $100 million, and wanted by US Federal Police since 2018. The agency also got hold of five houses linked to the gang leader, in the vicinity of Nigeria's largest city. The criminal complaint, unsealed in December 2018, accuses the criminal of wire fraud conspiracy, money laundering conspiracy and aggravated identity theft.

The Cbao bank is splashed by an embezzlement. Harouna Souma, head of the banking department of the Cbao bank embezzled 24 million CFA francs. ''L'Observateur'' which gives the information informs that Harouna Souma was referred to the prosecution, because he debited the internal account of the bank called "Global Carte Kalpé" to feed his two prepaid cards.

The two big names in mobile telephony in Mali, Moov Africa/Malitel and Orange-Mali, therefore continue to suffer from the consequences of the judgment of the Bamako Court of Appeal. After the condemnation of Moov Africa Malitel and Orange-Mali to 177 billion CFA francs, foreign investors are between fear and discouragement!

Financial regulators recently found that WeChat Pay violated China's anti-money laundering rules and did not comply with "know your customer" and "know your business" rules. According to the Wall Street Journal, Tencent Holdings Ltd faces a heavy fine for violating anti-money laundering rules.

In Cameroon, soldiers and magistrates are being trained to strengthen the fight against money laundering. This training aims to raise awareness on the conduct of investigations related to money laundering and terrorist financing.

Regional growth

As part of the implementation of the African Continental Free Trade Area (AfCFTA), the Enhanced Integrated Framework (EIF), the United Nations Economic Commission for Africa (ECA) and the International Islamic Finance Corporation commerce (SIFC) join forces in a new project. The project will support the implementation of more than 30 activities in the ZLECA strategies in Burkina Faso, Côte d'Ivoire, Guinea, Mauritania, Niger, Senegal, Togo and Tunisia.

The National Association of Microfinance Institutions (Animf) organized the first edition of the National Microfinance Conference. This meeting placed under the theme: Role and place of microfinance in the program of the Head of State for the inclusive development of the Democratic Republic of Congo”, constitutes an appropriate working framework for the sector. It brings together the various key players in the microfinance sector, with a view to reflecting on relevant solutions that must be provided to accelerate the inclusive development of the Democratic Republic of Congo (DRC).

The 49th session of the Interparliamentary Committee of the West African Economic and Monetary Union (CIP-UEMOA) was launched with the agenda of several points relating to the functioning and development of the Union in 2021. Among other subjects included in the he agenda includes the examination, in sub-committees, of the UEMOA Commission's 2021 report on the situation of the Union, together with a note of observations from the CIP.

Updated data from the World Bank shows a continued acceleration in the pace of economic growth, shared prosperity and wealth creation in the West African region. Considering the aggregate of GDP per capita, Cape Verde is by far the richest country in West Africa with a per capita income of 3064 dollars in 2020. It is followed by Côte d'Ivoire with a GDP per capita of 2326 dollars in 2020. Ghana, for its part, comes in 3rd place with a per capita income which has fallen by 2% to 2206 dollars in 2020. Nigeria is positioned in 4th place, its GDP per capita contracted by 6% to $2,097 in 2020.