Foreign Exchange

The pound plunged Friday to a one-and-a-half year low against the dollar. It lost 1.10% to 1.2887 dollars around 10:50 a.m. and 0.76% against the euro to 83.78 pence. Meanwhile, the euro was down 0.34 percent to $1.0797.

The value of the euro, the common currency of 19 member countries of the European Union (EU), has declined by 14.2% in recent months against the U.S. dollar, bringing in its wake the decline of the CFA franc, a currency used by the 6 member countries of the CEMAC and 8 countries of the WAEMU. This situation has led to a drop in interest rates on loans, and investors are losing interest, with their losses reinforced by rising prices (inflation). The decline has an advantage for exports, but because of the volume of imports, more local currency will have to be spent to pay international bills.

Cryptocurrencies

More than 40 business leaders from the cryptocurrency world are asking the European Union not to over-regulate the market. The request was made in a letter sent to the 27 European Union finance ministers on April 13. The EU is ahead of the United States and Britain in developing a set of rules for the $2.1 trillion industry.

Leading U.S. crypto-currency exchange Coinbase has launched its NFT marketplace. The platform will allow for the reporting of copyrighted or fraudulent content. The ability to create (or "mint") NFTs will be added to Coinbase's NFT platform in the future.

Stock Markets

After a mixed picture the day before, the two indices of the Bourse Régionale des Valeurs Mobilières (BRVM) ended the trading day of April 20, 2022 on an upswing. The BRVM Composite index thus recorded a rise of 0.61% to 220.67 points against 219.33 points the day before. For its part, the BRVM 10 index gained 0.31% to 168.29 points against 167.77 points previously. The market capitalization of the equity market recorded an increase of 40.367 billion FCFA to 6642.635 billion FCFA against 6602.268 billion FCFA the day before. As for the bond market, it fell from CFAF 7745.016 billion the day before to CFAF 7720.146 billion on 21 April 2022, a drop of CFAF 24.87 billion. The total value of transactions was 2.231 billion FCFA against 1.104 billion FCFA the day before.

Money market

It is through a public issue of an Islamic bond called Sukuk Ijara SOGEPA SN 2022 that Senegal is launching the subscription which starts on April 22 and ends in principle on April 26, 2022.CGF Bourse is the lead manager of the Management and Intermediation Companies (MIS) and all the MIS approved by the CREPMF are members of the underwriting syndicate. The issue price is 10 000 FCFA with a half-yearly periodicity of rents.

The State of Côte d'Ivoire collected the sum of 76.999 billion FCFA at the end of a simultaneous issue of 91-day Treasury bills (BAT) and 5- and 7-year Treasury bonds (OAT). The operation was carried out on 19 April 2022 on the WAEMU financial market.

On April 15, 2022, Togo's Treasury and Public Accounting Department obtained FCFA 32 billion (EUR 48 million) on the West African Monetary Union (WAMU) financial market at the end of its bond issue.48 million) on the West African Monetary Union (WAMU) financial market on 15 April 2022, following its issue of 7-year Treasury stimulus bonds (TSBs) organized in partnership with Dakar-based WAMU-Securities. Launched by the agency UMOA-Titres in collaboration with the Central Bank of West African States (BCEAO), the issuance of ODRs aims to enable the issuer to mobilize savings from individuals and legal entities.

At the end of the issue, the State of Benin has retained 10.027 billion FCFA out of the global bids of investors of 47 527 billion FCFA. The issue of 7-year Treasury Bonds (OAT), organized by Benin on April 14, 2022, resulted in a low absorption rate. Investors' bids were 21.10%.

Commodities

Oil prices were back down on Friday, struggling to recover sustainably. At around 09:25 GMT (11:25 a.m. CET), a barrel of North Sea Brent crude for June delivery was losing 1.57 percent to $106.63. The barrel of U.S. West Texas Intermediate (WTI) for delivery in the same month gave up 1.72% to 101.66 dollars.

In March 2022, oil production reached a total volume of 35 million 417 thousand barrels (MMBBLS), an increase of 9.5% compared to February. In February, crude oil production was 32,327 MMBBLS. Associated natural gas production was 87.583 million cubic feet (MMSCFD) in March, making a daily average of 2,825 MMSCFD, which represents a 7% increase over the previous month. In February, total gas production reached 81.621 MMSCFD corresponding to a daily average of 2.915 MMSCFD.

The kerosene supply system is severely disrupted in Senegal due to "unfavorable international conditions" combined with unprecedented tensions on the prices of certain raw materials. According to the press release from the Blaise-Diagne International Airport in Dakar (AIBD), which carries the information, aircraft refueling operations will no longer be able to continue as of Wednesday, April 20, 2022" at midday, "for a temporary period of two weeks.

In Côte d'Ivoire, more than €46 million of investment has been committed to the coffee and cocoa sector in 2021. The cocoa sector is progressing with an increase in production of 2.56% in 2021 compared to last year at 2.228 million tons (Mt) and exports at 2.309 Mt up 13.89%. On the other hand, the coffee sector is very much in decline. Production fell by 25.58% to 61,312 tons and exports plummeted by 43.88% to 46,163 tons.

The Burkinabe government is planning a national cotton processing center. The ministry in charge of industrial development has begun validating a study for the creation of this National Cotton Processing Center (CNATAC), at a cost of three billion CFA francs, to be located in Bobo-Dioulasso.

The Singaporean group, Valency International, aims to support Côte d'Ivoire, which processes only 10% of its cashew production locally. The group has obtained financing from Finnfund to launch a cashew processing plant in the country.

Companies

African start-ups raised a record $5.2bn in venture capital in 2021. The data was revealed in a report by the African Private Equity and Venture Capital Association (AVCA). The financial sector accounted for 60% of investments by value and nearly a third of transactions by volume.

The market appears to be more cautious about Nestlé Côte d'Ivoire as we enter 2022. The company announced sales of CFAF 195 billion, up 13.7%. Investors who bought Nestlé CI shares in January 2021 can now enjoy a capital gain of more than 1300%, and this year's 14% yield per share remains attractive.

Banking and Insurance

Niger has just received $250 million in support from the World Bank to deal with the economic and security crisis. This funding will enable 25 of the country's communes to combat droughts, floods and extreme heat events. The country also signed two financing agreements with the African Development Bank (ADB). A first envelope of CFAF 70 billion is intended for the development of road infrastructure and another of CFAF 789.5 million for the agricultural sector.

The African Development Bank Group announces its 2022 Annual Meetings from May 23-27 in Accra, Ghana and the 46th Board of Governors meeting of the African Development Fund (ADF) from August 26-27, 2020. This year's meetings will be held in a hybrid format with participants present in Accra and online. The theme of the 2022 Annual Meetings is "Fostering Climate Resilience and a Just Energy Transition for Africa."

For the first time, the African Export-Import Bank (Afreximbank) has had a positive year and is growing strongly with interest income again crossing the US$1 billion mark, according to a bank statement issued on Tuesday 19 April from Cairo. The group's equity increased by 17.4 percent to $4 billion from $3.4 billion the previous year.

The governor of the Central Bank of West African States (BCEAO), Tiémoko Meyliet Koné, has been appointed vice president of Côte d'Ivoire. The announcement was made by President Ouattara in his speech at the Congress of the History of Côte d'Ivoire, held in Yamoussoukro. The BCEAO is thus part of one of its largest governors, following a call from the country.

The Attijariwafa bank group extends its network to Chad. Through a new subsidiary named Attijari bank Chad, the group consolidates its presence in the CEMAC (Economic and Monetary Community of Central Africa) zone.

Standard Chartered Bank, announces that it will cease its activities in several countries, including Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe. The Bank's activities in these countries were deemed unprofitable. The Bank's performance there has been negative for several years. The Bank is also considering leaving Tanzania and Côte d'Ivoire.

The Malian subsidiary of the Pan-African Bank Ecobank, in order to offer its customers high value-added services, allows users to pay their water bill through digital solutions. This innovation is aimed at all customers, individuals, SMEs and large companies, and is designed to reduce queues at SOMAGEP cash desks and save time in processing transactions.

Ecobank Benin has just received a portfolio guarantee line for a total amount of 1.6 billion CFA francs. This fund granted by the African Guarantee Fund for small and medium-sized enterprises (AGF) will support SMEs, women entrepreneurship and the green economy in Benin. The line of guarantee will make it possible, on the one hand, to alleviate the difficulties linked to the lack of guarantees encountered by SMEs/SMIs and which constitute an obstacle to the financing of their activities and, on the other hand, to provide a guarantee for the development of the economy.The guarantee line makes it possible, on the one hand, to alleviate the difficulties related to the lack of guarantees encountered by SMEs and which constitute an obstacle to the financing of their activities and, on the other hand, to further increase its commitment to the SME/SMI segment while promoting the development of female leadership in the private sector.

The Société Générale de Côte d'Ivoire announced a total balance sheet of 3,000 billion CFA francs. This total balance sheet includes all the financing that we grant to the Ivorian economy, and all the deposits and funds that the shareholders have entrusted to us to advance. Over the past five years, the banking institution has increased the funds lent to Ivorian economic players.

Senegal has signed three new agreements worth more than CFAF 233 billion with the Islamic Development Bank (IDB). These agreements will mainly concern the Dakar/Tivaouane/Saint Louis highway projects, phase 2 of the Diamniadio-AIBD TER and the construction of a commercial and residential Waqf complex for the benefit of the Daara.

The Gabonese reinsurer plans to go public in December 2022. The Société Commerciale Gabonaise de Réassurance (SCG Ré) has already surrounded itself with three advisors to carry out this operation. Price Waterhouse Coopers is accompanying SCG Ré for the certification of the IPO process, Ernest and Young, legal counsel, will comb through the provisions and regulatory framework of CIMA/OHADA. Finally, the agency KRZ, known for having organized the Fanaf in Libreville, will take care of the communication aspects.

The Nigerian insurtech Etap aims to expand its team, and promote the adoption of car insurance across Africa. Etap has secured $1.5 million in pre-seed funding to expand its team, and drive the adoption of car insurance across Africa. The funding will support the rollout of its app that allows drivers to purchase insurance, quickly file claims and be rewarded for good driving and accident prevention.

Financial crimes

The report by the British NGO Tax Justice Network (TAJ) reveals that companies based in the Republic of Congo have transferred CFAF 860 billion of their profits abroad at the expense of the country's tax system. In the Congo for the year 2021, these operations have caused the Congolese state to bear more than 280 billion CFA francs in tax losses.

The transitional president of Guinea announced the establishment of a cell to denounce acts of corruption through a toll-free number that will be placed under his direct authority. The cell will work closely with the specialized services. However, the Head of State recalled that the authors of false denunciations engage their moral and or criminal responsibility.

Mahamadou Zada, appointed Minister of Communication in April 2021 by President Mohamed Bazoum, has been "interviewed by a judge of the economic and financial pole of Niamey.conomic and financial division of Niamey" who ordered "his incarceration in Kollo", a town located about 50 km south of the capital, according to this source. He was cited in a case of embezzlement of three billion CFA francs (more than 4.5 million euros) when he ran a public company between 2013 and 2021.

Regional growth

The Central Bank of West African States (BCEAO), in its analysis of the evolution of the indicators evaluated from the estimated data, took stock of the situation of the microfinance sector in the member countries of Umoa for the fourth quarter of the year 2021. It shows that 17,001,669 people benefited from the financial services provided by the estimated 508 units at the end of December 2021.

In its latest World Economic Outlook report, the International Monetary Fund (IMF) raised its 2022 growth forecast for sub-Saharan Africa to 3.8%, despite inflationary risks. Like Niger, six other African countries are expected to grow by more than 6% this year.

The 20th Congress of the Association of African Electricity Companies (Asea) is scheduled for July 14-21. The congress, which will be held in the Senegalese capital, is expected to welcome nearly 1,000 participants around the theme: "the need for public service and the performance of electricity companies".

i-conferences is organizing the Africa Capital Markets Forum 2022 on May 12 and 13 in Casablanca. The objective of this event is to make the African economy more efficient and integrated. In partnership with the Casablanca Stock Exchange, COSUMAF, CREPMF, BRVM and Perenity Software, this event will be attended by more than 250 participants from nearly 30 countries representing ministries of finance, market regulators, financial institutions and the private sector.market regulators, financial institutions, stock exchanges, management and intermediation companies, strategy consultants, technology providers...