25 years later, the WAEMU financial market regulator is changing under the sign of resilience

25 years later, the WAEMU financial market regulator is changing under the sign of resilience

The AMF-UEMOA (Financial Market Authority) is changing its name while keeping intact its mission as regulator of the WAEMU financial market (West African Economic and Monetary Union), its power to monitor the transactions of the Regional Stock Exchange (BRVM) and the Central Depository/Bank for Settlement (DC/BR), its function of empowering stakeholders and its role as arbiter sanctioning breaches in the name savings protection. The transition from CREPMF to AMF-UEMOA, marked by a high-level symposium on January 19, 2023, was the occasion for a progress report by Badanam Patoki, president of the institution.

From 18 players over the 1998-2004 period to 261 players over the 2019-2022 phase, the challenge of the financial watchdog has evolved a lot. An autonomous body since 2015, freed from state subsidies, the AMF-UEMOA is adapting to the changes in a market which, 25 years after its start, has seen transactions go from a few billion to hundreds of billions of FCFA.

The introduction of the online stock market in 2019 illustrates this desire for perpetual adaptation of a market called to go even further in the collection of popular savings. “The continued modernization of the regulatory and prudential framework, the strengthening of financial education, the protection of investors and financial communication are part of the regulator’s current projects”, recalled Mr. Patoki.

The new AMF-UEMOA logo unveiled on the sidelines of the gala evening.

If in terms of volumes, the bond market and the equity market have evolved well, with approximately 7,500 billion FCFA of market capitalization and 8,000 billion of outstanding bonds, it goes without saying, as Assahoré Konan Jacques, Managing Director of the Treasury and Public Accounts, that there are still significant margins for progress expected from investors. Foremost among these expectations is the demand for long maturities, the diversification of investors and the reduction in the cost of resources.

On this link, the hot reaction of Ndeye Khady Cissé, author of the new AMF-UEMOA logo.

In the meantime, market participants are coming up against the weak animation of the secondary compartments of the market, which suggests a still high counterparty risk. A key player, the Public Treasury of Côte d’Ivoire intends to solicit 3000 billion FCFA in 2023.

The symposium was marked by the presence of leading figures from the world of Economics and Finance such as Abdoulaye Diop, President of the WAEMU Commission, who presented integration as the foundation of resilience. . “The positive growth of WAEMU at a time when parts of Africa and the world were in recession testifies to the solidity of regional integration”. Abundant in the same direction, the Governor of the BCEAO, Jean Claude Kassi Brou, returned to the importance of controlling inflation, a guarantee of protection of consumer purchasing power and a factor of stability. So many macroeconomic ratios that explain the Union’s attractiveness to investors, opines Serge Ekué, president of the West African Development Bank (BOAD), an institution involved in financing infrastructure. For his part, Lionel Zinsou highlighted the achievements of the WAEMU financial market in terms of stability and growth, not without recalling the imperative to raise the financing ratios of the economy, in the direction of SMEs and the private sector in general.

Among the distinguished guests, note Nezha HAYAT, President of the Moroccan Capital Market Authority (AMMC), who calls for considering the role of the market regulator beyond the narrow vision of the policeman and encompassing development and cooperation .