Capital Markets
From The Report: Cote d'Ivoire 2013
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Regionalism is a feature not only of Francophone West Africa’s monetary regime and banking sector, but also of its financial markets. The bond market is dominated by sovereign issues from Côte d’Ivoire and Senegal, the two largest economies in the region. The equity market has two capitalisations – Sonatel and Ecobank Transnational Incorporated – while most of the companies listed from Côte d’Ivoire. Although traded volume and market capitalisation have been on the rise in recent years and financial performance has been impressive, the regional financial markets remain a marginal source of funding, except for governments. Unlike some of Africa’s larger, more dynamic exchanges, the Bourse Régionale des Valeurs Mobilières (BRVM) has been stagnant in recent years, with few new equity listings. The markets are limited to trading of shares and bonds, although moves are afoot to open up the exchange to smaller businesses, and to the development of derivative products and commodities.

Articles from this Chapter

Overview

Pump up the volume: Increased listings and trading are priorities for the years ahead
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Regionalism is a feature not only of Francophone West Africa’s monetary regime and banking sector, but also of its financial markets. The bond market is dominated by sovereign issues from Côte d’Ivoire and Senegal, the two largest economies in the region. The equity market has two capitalisations – Sonatel and Ecobank Transnational Incorporated – while most of the companies listed from Côte d’Ivoire. Although traded volume and market capitalisation have been on the rise in recent years…

Analysis

Balancing act: Helping the exchange compete with other bourses may require
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On their own, smaller emerging markets often struggle to achieve the necessary critical mass in their capital markets to support economic growth. Smaller stock exchanges are often insufficient in scale to justify international investors expending resources to track and invest in them. For this reason, the regional integration of exchanges is a growing trend. Bringing together the exchanges of Chile, Colombia and Peru, the Latin American Integrated Market is a key example. The Bourse Régionale…

Interview

OBG talks to Edoh Kossi Amenounve, CEO, Bourse Régional des Valeurs Mobilières (BRVM)
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Interview: Edoh Kossi Amenounve To what extent has the BRVM been affected by instability in Côte d’Ivoire and in global markets? EDOH KOSSI AMENOUNVE: Since we began in 1998, we have seen steady growth, with 40 companies currently listed. In spite of the international financial slowdown and Côte d’Ivoire’s political crisis, the BRVM has seen a strong recovery over the past two years. Turnover from 2011 to 2012 doubled from the lows during the crisis. And in 2012, for example, the BRVM…

Interview

OBG talks to Kadi Fadika-Coulibaly, Managing Director, Hudson & Cie
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Interview: Kadi Fadika-Coulibaly What have been the major trends in stock growth performances in 2013? KADI FADIKA-COULIBALY: One of the interesting picks in 2013, construction firm Société d'Etudes et de Travaux pour l'Afrique de l'Ouest, might seem odd to investors, as its stock has experienced very little activity in the past 10 years. However, since 2012 there has been significant infrastructure construction, so investors ought to take notice. Otherwise, there are more obvious securities…

Analysis

CIE: Utilities
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THE COMPANY: Compagnie Ivoirienne d'Electricité (CIE) is a leading utilities company in West Africa. Created in August 1990 by the French group Bouygues and the electricity company EDF, CIE is a private Ivoirian company that holds a public service concession for the production, transportation, export, import, distribution and marketing of electricity. After an initial period of collaboration from 1990 to 2005, the state of Côte d’Ivoire and the CIE renewed their partnership for another 15 years, running from 2005 until 2020. Finagestion, the majority shareholder with 54%, is a holding company created in 2003 and based in France. The…

Analysis

Sicable: Manufacturing
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THE COMPANY: Sicable, a subsidiary of Prysmian Energy Systems and Cables, is the main cable manufacturer in Côte d’Ivoire. It sells products ranging from high-voltage cables to low- and medium-voltage cables for houses to the national market. Sicable also exports to other neighbouring countries that share the same French standards, and its market extends across the region all the way to Cameroon. The electricity cable market in Côte d’Ivoire and in the sub-region is highly competitive, with other brands coming from South and North Africa. Growing North African and South African competition is more on price than quality, and has resulted…

Analysis

Sonatel: Telecoms
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THE COMPANY: Sonatel provides telecommunication solutions in the areas of fixed line, mobile, internet, television, as well as data services to individuals and businesses in countries including Senegal, Mali, Guinea and Guinea-Bissau. The company also offers consulting services, as well as engages in the lease, sale, installation, and maintenance of hardware and software for telecoms networks for businesses. Furthermore, it has been offering its services under the Orange brand since November 2006, and services around 18.3m subscribers. Sonatel also has a strategic partnership with France Telecom Group. In 2012, Sonatel’s revenues grew…