Capital Markets
From The Report: Cote d'Ivoire 2018
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In September 2018 the Bourse Régionale des Valeurs Mobilières (BRVM), which is headquartered in Abidjan, will celebrate its first 20 years in operation. The past decade has seen a significant increase in the volume of listings, liquidity, valuations and the number of market participants. A long-awaited third compartment of the equity market was launched in the final month of 2017, while the BRVM plans to extend the breadth and depth of the market over the medium term. Initial public offerings have been a key driver of the rise in capitalisation on the BRVM equity market, with the exchange having a standout year in 2016, when four firms listed, raising a combined €129m in capital. The following year saw the flotation of two banks, which raised around €201m in total.

This chapter contains interviews with Edoh Kossi Aménounvé, Managing Director, Bourse Régionale des Valeurs Mobilières (BRVM); and Kadi Fadika-Coulibaly, Managing Partner, Hudson & Cie.

Articles from this Chapter

Overview

Exchange of ideas: New listings and investment vehicles are set to drive growth
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In September 2018 the Bourse Régionale des Valeurs Mobilières (BRVM) will celebrate its first 20 years in operation. The bourse is headquartered in Abidjan, and dominated by Ivorian listed firms and market participants. Having stagnated somewhat during Côte d’Ivoire’s period of political instability in the first decade of the century, it has been making up for lost time in the intervening years. The past decade has seen a significant increase in the volume of listings, liquidity,…

Analysis

Share and share alike: Banks feature heavily in a string of recent initial public offerings
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Initial public offerings (IPOs) have been a key driver of the rise in capitalisation on the Bourse Ré gionale des Valeurs Mobilières (BRVM) equity market recently. The exchange had a standout year in 2016, with four firms coming to market for the first time, raising a combined CFA86bn (€129m) in capital. Together the companies were valued at CFA470bn (€705m) at the time of flotation. One was in agro-industry and the other three were in the financial sector: Bank of Africa Mali, Société…

Analysis

Room to grow: Private equity gains momentum with the launch of a new fund
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Over the next three decades private equity (PE) is set to play a significant role in financing, developing and supporting the private sector in West Africa. The growing number of PE firms with offices in Côte d’Ivoire highlights how its profile has expanded in the years since the civil war came to an end. Indeed, by mid-2017 there were 15 PE funds operating in the country – ranging from Tunisia’s AfricInvest and France’s Amethis Finance, to South Africa’s AFIG Funds, Mauritius’…

Interview

Capital advantage: Edoh Kossi Aménounvé, Managing Director, Bourse Régionale des Valeurs Mobilières (BRVM), on increasing the listing pipeline
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Interview:Edoh Kossi Aménounvé How will the BRVM encourage small and medium-sized enterprises (SME) to list on the exchange? EDOH KOSSI AMÉNOUNVÉ: SMEs will be provided with substantial advantages both during and after their initial public offering (IPO). The accessing criteria will be much less stringent: social capital of CFA100m (€150,000), a minimum of two years of existence and at least 10% floating capital. They also benefit from our capacity-building funds which will support…

Analysis

BRVM: Equities
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Headquartered in Abidjan, Côte d’Ivoire, the Bourse Régionale des Valeurs Mobilières (BRVM) serves the members of UEMOA (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo) whose currency, the CFA franc, is pegged to the euro. The BRVM is among the world’s most successful integrated regional exchanges, and is Africa’s sixth-largest securities exchange by market capitalisation, with its $12.39bn in equities representing 14% of UEMOA’s GDP in 2016. Following the strong growth experienced in 2015 (+17.7%), the BRVM recorded a setback at the end of 2016, with drops of 3.87% to 292.17 and 9.79% to…

Analysis

UEMOA Debt Market: Bonds
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The UEMOA bond market remains one of the primary sources of internal funding for UEMOA states, with the government bonds market totalling some CFA2.368trn (€3.6bn) and representing 89% of the overall outstanding amount at the end of 2016. These figures reflect the strong demand for long-term debt among UEMOA states in their endeavours to finance their budget deficits. Moreover, government bonds worth CFA1.043trn (€1.6bn) were issued in 2016 with the purpose of funding infrastructure programmes. These were 75% focused on long-term maturities of 10-12 years, with interest rates ranging from 5.9% to 6.5%. Market Capitalisation On…

Analysis

On the up: Banking
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Since 2011, in the aftermath of the post-election crisis, Côte d’Ivoire has been in a phase of economic recovery, with an average annual GDP growth rate of 9.28% over the period 2012-16. The Ivorian banking sector – the most important in the UEMOA zone – is growing rapidly, driven by the emergence of the middle class, public investment programmes and the return of private investors. The sector was composed of 27 banks at the end of 2016, a year in which Standard Bank (which trades as Stanbic Bank) received a banking licence from the authorities. Also in that year Banque de l’Union de Côte d’Ivoire – a subsidiary of Banque…

Interview

Meeting demand: Kadi Fadika-Coulibaly, Managing Partner, Hudson & Cie, on developing the country’s capital markets
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Interview:Kadi Fadika-Coulibaly In what ways will the upcoming changes to the regulatory framework affect the financial sector? KADI FADIKA-COULIBALY: The shift towards more stringent regulations within the sector in the UEMOA follows a global trend aimed at reinforcing the financial services sector and meeting the expectations of a more demanding clientele. To respond to these new requirements, banks and insurance companies in the union can use the Bourse Régionale des Valeurs Mobilières…