Capital Markets
From The Report: Cote d'Ivoire 2020
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West Africa’s stock exchange, the Bourse Régionale de Valeurs Mobilières (BRVM) has come a long way since its launch two decades ago. Nonetheless, as West African markets continue to undergo rapid economic development, much of the exchange’s full potential has yet to be realised. Côte d’Ivoire – given its strong presence on the exchange – will continue to play a pivotal role. In the short term, the BRVM will need to grapple with a number of events, such as the presidential elections scheduled for the fourth quarter of 2020, as well as global recessionary pressures that will likely affect investment flows as a result of the Covid-19 pandemic. This chapter contains interviews with Félix Edoh Kossi Aménounvé, CEO, Bourse Régionale des Valeurs Mobilières; Niamkey Isidore Tanoé, CEO, Atlantique Finance; Laureen Kouassi-Olsson, Regional Head for West and Central Africa, Amethis.
Articles from this Chapter
Growth market: Despite the downturn in recent years, the regional stock exchange offers significant potential for expansion
Localising development: Félix Edoh Kossi Aménounvé, CEO, Bourse Régionale des Valeurs Mobilières (BRVM), on leveraging new partnershipsOBGplus
Interview:Félix Edoh Kossi Aménounvé To what extent could the adoption of the eco currency benefit activity on the BRVM? FÉLIZ EDOH KOSSIAMÉNOUNVÉ: The BRVM, like other stock exchanges on the continent, is looking for innovative solutions to widen and deepen the capital markets sector, taking into account challenges such as the low attractiveness for foreign investors, low rates of local savings and low liquidity. Faced with these challenges, our states and several large companies…
Funded growth: Private equity helps firms secure capital for expansionOBGplus
As Côte d’Ivoire seeks to consolidate its position as the leading financial centre in West Africa, the environment for private equity funds has been improving in recent years. Not only is the country’s economic capital Abidjan home to the Bourse Régionale des Valeurs Mobilières (BRVM), the regional exchange for the eight countries of UEMOA, but Côte d’Ivoire’s economic rebound from a decade of civil unrest has also positioned its economy as one of the fastest-growing in the world. Funds These…
Beyond the horizon: Niamkey Isidore Tanoé, CEO, Atlantique Finance, on debt dynamics and new currency perspectivesOBGplus
Interview:Niamkey Isidore Tanoé To what extent will eurobonds and other financial mechanisms help alleviate Ivorian debt? NIAMKEY ISIDORE TANOÉ: The government has been allowed to borrow on international markets in either euros or dollars for some time now. The maximum amount allowed by the authorities is about $2bn. This was fundamental to reducing the Ivorian debt, as without this allowance, the country could not have raised that amount of money at a local level. In turn, this reduced…
Driving ahead: The automotive market experienced another year of stable growth in 2018, with new vehicle sales particularly promisingOBGplus
After contracting by 10% in 2016, the new vehicle market grew by 9% in 2017. This recovery continued in 2018 when the sector expanded by 14%, with a total of 11,376 units sold. This strong performance can be attributed to a combination of factors, including the resumption of public orders; resumed activity in the construction sector; increased agricultural production, particularly of cocoa, coffee and cashews; and rising household consumption and improved purchasing power. The Ivorian car distribution market is highly fragmented, with 16 players in total. The smallest is Tranchivoire, which has a 0.03% market share, while the largest…
Securing the future: UEMOA countries continue to rely on the regional public debt market as financing needs increaseOBGplus
The economic situation in UEMOA remained favourable in 2018. The region’s average GDP growth was 6.6%, the seventh consecutive year above 6%, and the average annual inflation rate was 0.9%, compared to 1.1% the previous year. However, with strong capital spending and trade terms turning unfavourable following a rise in global oil prices, this was accompanied by a high fiscal deficit, estimated at CFA2.7trn ($4.6bn), or 3.9% of regional GDP, although there were disparities between member states. In comparison, the fiscal deficit stood at 4.3% in 2017. The overall financing need for the UEMOA zone was estimated at CFA3.1trn ($5.3bn) in…
Room to grow: The exchange is hopeful it will make a recovery after equity markets across the continent performed poorly in 2018OBGplus
The Bourse Régionale des Valeurs Mobilières (BRVM) is the capital market of the UEMOA, which brings together Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. The BRVM began operating in 1998 with 35 companies listed on its equity compartment. As of the end of 2018 there were 46 listed companies, including 35 Ivorian companies, and 40 bond lines made up of 26 for states of the economic union, 12 for regional organisations and two on behalf of the West African private sector. Performance The exchange was one of the best performing African stock exchanges in 2015 with a composite index of 17.7%. In…
Positive prospects: Laureen Kouassi-Olsson, Regional Head for West and Central Africa, Amethis, on harnessing private equity as a driver of growth and regional integrationOBGplus
Interview:Laureen Kouassi-Olsson What are the strengths inherent to the local market that have historically attracted foreign investment? LAUREEN KOUASSI-OLSSON: Côte d’Ivoire is a competitive investment destination with a stable currency, longterm visibility and attractive return prospects. Moreover, it is the entry point to UEMOA, a well-integrated economic zone from a regulatory, tax and legal standpoint. As the dominant economy in the zone, the country offers regional investment opportunities,…
Rise of robo-advisers: Growing competition in the automated consultancy market to lead to further consolidation, innovation and investmentOBGplus
The use of sophisticated algorithms in wealth management is leading to improved efficiency and transparency in the financial services sector, benefitting both providers and clients. In particular, so-called robo-advisory firms are disrupting the industry and helping to boost financial inclusion. Primarily concentrated in developed markets such as the US and the UK, the technology is starting to make inroads in other parts of the world as traditional financial institutions and tech start-ups seek to tap the segment’s potential. The robo-advisory model allows customers to manage their wealth or retirement plan online by completing a simple…
Rise of robo-advisers: Growing competition in the automated consultancy market to lead to further consolidation, innovation and investmentOBGplus
The use of sophisticated algorithms in wealth management is leading to improved efficiency and transparency in the financial services sector, benefitting both providers and clients. In particular, so-called robo-advisory firms are disrupting the industry and helping to boost financial inclusion. Primarily concentrated in developed markets such as the US and the UK, the technology is starting to make inroads in other parts of the world as traditional financial institutions and tech start-ups seek to tap the segment’s potential. The robo-advisory model allows customers to manage their wealth or retirement plan online by completing a simple…
