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BANK OF CENTRAL AFRICAN STATES

ANNUAL REPORT

2017

SUMMARY

LIST OF TABLES ..................................................................................................5 LIST OF FIGURES................................................................................................7 LIST OF INSETS...................................................................................................8 LIST OF ACCRONYMS AND ABBREVIATIONS...................................................9 MAP OF MEMBER STATES OF THE ECONOMIC AND MONETARY COMMUNITY OF CENTRAL AFRICA (CEMAC)................................................11 THE GOVERNOR’S ADDRESS..........................................................................13 OVERVIEW OF THE YEAR 2017........................................................................15

I. ECONOMIC AND MONETARY GROWTH.......................................................17

1. INTERNATIONAL CONTEXT......................................................................19
1.1. Economic conditions of major partners to CEMAC Member States ... 19 1.2. Financial, Foreign Exchange and Gold Markets..................................23 1.3. Markets for basic commodities.................................................................. 27
2. 2.ECONOMIC AND MONETARY SITUATION IN CEMAC .........................29

2.1. Economic growth.................................................................................29 2.2. Prices and competitiveness.................................................................34 2.3. Public finance and external debt .........................................................39 2.4. External sector ....................................................................................43 2.5. Monetary sector...................................................................................45
3. REGIONAL INTEGRATION .......................................................................55

3.1. Multilateral surveillance.......................................................................55 3.2. Topical issues ......................................................................................58

II. MISSIONS AND GOUVERNANCE.................................................................67

1. MISSIONS...................................................................................................69
1.1. Monetary policy............................................................................................. 69 1.2. Currency issuance ........................................................................................ 76 1.3. Management of foreign exchange reserves ................................................ 77 1.4. Management of payment systems and methods ........................................ 79 1.5. Financial stability........................................................................................... 81 1.6. Setting foreign exchange policy within the Community............................... 98
2. GOVERNANCE...........................................................................................99

2.1. Decision-making bodies................................................................................ 99 2.2. Supervisory authorities............................................................................... 103 2.3. Other bodies ............................................................................................... 104

3

III. MANAGEMENT AND COOPERATION .......................................................109

1. ACTIVITIES AND PROJECTS OF BEAC .................................................111
1.1. Research ..................................................................................................... 111 1.2. Human Resource Management................................................................. 112 1.3. Capacity building......................................................................................... 114 1.4. Audit and Control......................................................................................... 115 1.5. IT and telecommunications......................................................................... 116 1.6. Legal affairs and contracts......................................................................... 116 1.7. Investment and wealth management......................................................... 118 1.8. Strategic planning and budgeting............................................................... 118 1.9. Communication ........................................................................................... 119
2. REGIONAL AND INTERNATIONAL COOPERATION ..............................121

2.1. Regional cooperation.................................................................................. 121 2.2. International cooperation ............................................................................ 123
3. BEAC ACCOUNTS ...................................................................................127

3.1. Balance sheet.............................................................................................. 127 3.2. Income statement........................................................................................ 131 3.3. Auditors’ Report........................................................................................... 133

APPENDICES ...................................................................................................135

A. GENERAL INFORMATION.......................................................................137 B. ECONOMIC, MONETARY AND FINANCIAL APPENDICES....................157

4

LIST OF TABLES

Table 1: Key metrics in financial markets............................................................26 Table 2: Evolution of Gross Domestic Product by country from 2012 to 2017....30 Table 3: Contribution of aggregate demand to actual growth from 2012 to 2017 ....32 Table 4: Contribution of various sectors to actual GDP growth from 2012 to 2017..34 Table 5: Table of financial transactions by CEMAC Member
States from 2012 to 2017......................................................................40

Table 6: CEMAC Balance of Payments from 2015 to 2017 ................................44 Table 7: Summary monetary situation of CEMAC ..............................................46 Table 8: Increase in money supply......................................................................47 Table 9: Increase in the components of money supply trends............................48 Table 10: Evolution of net foreign assets of the monetary system........................49 Table 11: Evolution of net foreign assets of BEAC................................................49 Table 12: Evolution of gross foreign assets of BEAC............................................50 Table 13: Evolution of official external commitments ............................................50 Table 14: Evolution of the net foreign position of banks........................................51 Table 15: Expansion of domestic credit ................................................................51 Table 16: Evolution of net foreign assets on States per component.....................52 Table 17: Evolution of net foreign assets on Public Treasuries.............................53 Table 18: Changes in credits to the economy by maturity ....................................54 Table 19: Results of multilateral surveillance within CEMAC............................... 57 Table 20: Monetary and credit targets as of 31 December 2017..........................72 Table 21: Public placements remuneration scale at BEAC...................................73 Table 22: Minimal coefficients and thresholds for compulsory reserves at BEAC .....74 Table 23: Distribution of BEAC support schemes to Public Treasuries.................75 Table 24: Interbank rates in CEMAC, WAEMU and the Euro Zone ......................77 Table 25: Progress of transactions on payment systems and methods................81 Table 26: Situation in 2017 on monthly reporting of taxpayers. ............................82 Table 27: Progress on the situation of balance sheets .........................................83 Table 28: Trend in customer deposits per type of depositor..................................84 Table 29: Trend in customer deposits per type of account....................................85 Table 30: Trend of gross credits per type of beneficiary as of 31 December 2017...... 86 Table 31: Trend of transactions with BEAC...........................................................87 Table 32: Trend of transactions with associated correspondents..........................87 Table 33: Trend of transactions with non-associated correspondents...................88 Table 34: Number of banks in compliance with prudential requirements..............89 Table 36: Number of assents per category and country as of 31 December 2017....90

5

Table 35: Statistics on the number of assents from December 2013 to December 2017.................................................................................90

Table 36: Number of assents by category and country as of 31 December 2017.......................................................................90
Table 37: Progress on the situation of balance in MFI..........................................91 Table 38: Progress of some indicators in the microfinance sector as of 30th September 2017...................................................................93

Table 39: Progress of average debit rate..............................................................94 Table 40: Progress of average credit rate.............................................................94 Table 41: Comparison of MFI-Bank activities in September 2017........................95 Table 42: Listed bonds with BVMAC as of 31 December 2017 ............................98 Table 43: Listed bonds with DSX as of 31 December 2017..................................99 Table 44: Total transactions per share at DSX in 2017.........................................99 Table 45: Growth in the number of staff at BEAC in 2017 ..................................115 Table 46: Progress report of the Central Bank....................................................132 Table 47: Development of products ....................................................................133 Table 48: Increase in taxes .................................................................................134 Table 49: Income Statement for the 2017 Financial Year....................................135

6

LIST OF FIGURES

Figure 1: Key metrics of the international environment ..................................... 20 Figure 2: Composite index of basic commodity prices exported from CEMAC . 27 Figure 3: Distribution of nominal CEMAC GDP in 2012 and 2017 .................... 30 Figure 4: Distribution of CEMAC GDP - oil and non-oil sectors......................... 31 Figure 5: Actual growth in CEMAC Member States........................................... 31 Figure 6: Annual average inflation rate from 2012 to 2017................................ 35 Figure 7: Contribution of consumption purposes to the price index of consumption within CEMAC........................................................... 36
Figure 8: Progression of REER and NEER ....................................................... 37 Figure 9: Total contributions to global REER ..................................................... 37 Figure 10: Progression of REER ......................................................................... 38 Figure 11: Progression of budgetary balance, commitment basis, including grants .41 Figure 12: Rate of public sector external debt..................................................... 42 Figure 13: Monthly progress of foreign exchange reserves in the Zone since January 1993 ............................................................................ 59

Figure 14: Foreign exchange reserves and performance criteria in terms funding capacity for balance of payment ............................................ 60

Figure 15: Initial projection for foreign exchange reserves in 2017 and the observed level........................................................................ 62

Figure 16: Progression of contributions from explanatory factors for stabilising foreign exchange reserves in 2017..................................................... 62

Figure 17: Age pyramid of BEAC staff as at 31 December 2017....................... 115

7

LIST OF BOXES

Box 1: Progress on Monetary Policy Reforms ........................................................ 70 Box 2: Illustrated calculation compulsory reserve bases........................................ 74 Box 3: Emergency liquidity provision from BEAC ................................................... 77 Box 4: Risk management system handled by the Trading Room............................ 80 Box 5: Consultation on the new CEMAC financial market facilitation system......... 92

8

LIST OF ACCRONYMS AND ABBREVIATIONS

AMCP CAR

: African Monetary Cooperation Programme : Central African Republic

CIEA DGCG DIPG DPRAI DPSBCG DSX

: Composite Index of Economic Activities : Directorate General for General Control : Directorate for Investment, Wealth Management and Administration : Risk Prevention and IT Audit Department : Department for Strategic Planning, Budgeting and Management Control : Douala Stock Exchange

ECB

: European Central Bank

EONIA EURIBOR ECF

: Euro OverNight Index Average : Euro Interbank Offered Rate : Extended Credit Facility

FED

: Federal Reserve System

GRAINE

: Gabonese Agricultural Achievements and Initiatives of Committed Citizens programme

HIPCI IMF

: Heavily Indebted Poor Countries Initiative : International Monetary Fund

IMA

: Investment Management

IOSCO ITB MFI

: International Organization of Securities Commissions : Institute of Banking Techniques : Microfinance Institution

MSRC-AC

: Sub-Regional Coordination Mechanism for United Nations System Support - Central Africa

MUCODEC OECD OPEC OTA

: Congolese Savings and Loans Scheme : Organisation for Economic Co-operation and Development : Organisation of Petroleum Exporting Countries : Assimilable Treasury Bond

PDRH PI

: Human Resource Master Plan : Investment Portfolio

PNG

: Overall Net Position

PSB

: Central Bank Strategic Plan

  • PT
  • : Trading Portfolio

  • PR
  • : Penalty rate

REER SADC SDM

: Real Effective Exchange Rate : Southern African Development Community

: Trading Room
SDR

: Special Drawing Rights

SIFI - JA SME SVT

: International Finance and Investment Company - Jeune Afrique : Small and Medium-Sized Enterprise

: Primary Dealer
SYGESBEAC : BEAC Management System SYGMA

: Automated Gross Amount System
SYSCOBEAC : Accounting System of the Bank of Central African States

9

SYSTAC TCM

: Central African Telecompensation System : Minimum Credit Rate

TEG

: Annualized percentage rate

  • TIAO
  • : Auction rate

TIMP TIPP TISPP UGRIF VAR

: Weighted-average Interbank Rate : Repurchase Agreement Interest Rate : Interest Rates on Public Investments : Financial Institutions Reform Management Unit : Vector Autoregressive

WAEMU

: West African Economic and Monetary Union

10

MAP OF MEMBER STATES OF THE ECONOMIC AND
MONETARY COMMUNITY OF CENTRAL AFRICA (CEMAC)

1 6¡

  • 8¡
  • 1 2¡
  • 2 0¡
  • 2 4¡

EGYPTE
L Y B I E

  • 20¡
  • 20¡

FAYA LARGEAU

N I G E R

Fada
16¡

12¡ 8¡
16¡ 12¡ 8¡

T C H A D

S O U D A N

BILTINE
ABÉCHÉ
MAO

LAC

BOL

TCHAD

ATI MONGO

Kouss ri

N I G E R I A

MASSENYA
AM TIMAN
MAROUA

BONGOR

LAÏ
BIRAO
GAROUA

H

SARH
DOBA
MOUNDOU
NDÉLÉ

NGAOUNDÉRÉ

C E N T R A F R I Q U E

KAGA BANDORO
BOSSANGOA
BRIA
BOZOUM

BOUAR

Dj ma

BAMENDA
BAMBARI

Foumban

SIBUT
Obo

BAFOCUSASAMM E R O U N

BANGASSOU

MOBAYE

Nkongsamba

BERTOUA

BANGUI

MBAIKI
BUEA

Limbe
4¡

4¡

DOUALA

YAOUNDE

N

NOLA

Ed a

MALABO

Yokadouma

LUBA
Kribi EBOLOWA

Sangmelima

REPUBLIQUE DEMOCRATIQUE
DU CONGO

OCEAN

Bitam

EBEBIYIN
BATA
IMPFONDO
MONGOMO
Souanké

Mbini

OYEM
EVINAYONG
OUESSO

GUINÉE EQUATORIALE

MAKOKOU

Kell
Okondja

LIBREVILLE

  • 2
  • 4¡

0¡
Makoua

OWANDO

é

PORT-GENTIL

LAC

LEGENDE

LAMBARÉNÉ

Lastourville

KOULAMOUTOU

Moanda

EWO

TOUMBA

Oyo

Capitale d'Etat

G A B O N

MOUILA

LAC

Chef lieu de région Autres localités

FRANCEVILLE

LEOPOLD II

DJAMBALA
TCHIBANGA

Contour Afrique Centrale Limites d'Etats

  • K
  • S

Mayumba

SIBITI MADINGOU

N’kayi

A T LANTIQUE

4 ¡

Cours d'eau

4¡

DOLISIE
POINTE NOIRE

BRAZZAVILLE

KINSHASA

Chemin de fer

KINKALA

CABINDA

Echelle 1:11 000 000

  • 50 Km
  • 0
  • 100
  • 200
  • 300 Km

Realis e par :

INSTITUT NATIONAL DE CARTOGRAPHIE
779 Avenue Mgr VOGT CAMEROUN

2 0¡

  • INC - CAMEROUN 2004
  • C

A N G O L A

8¡

  • 1
  • 2¡

1 6¡

11

THE GOVERNOR’S ADDRESS

The Governor of BEAC

The economic situation of countries within the Economic and Monetary Community of Central Africa (CEMAC) greatly improved in 2017, after a slight recession in 2016 as a result of the fall in commodity prices on the international market, especially crude oil, which is the main export of the Sub-region. Hence, strengthening the macroeconomic sector through vigorous and concerted action of Member States and Community institutions, including the Central Bank, made it possible to contain the drop in foreign exchange reserves.

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    Pan-African Financial Institutions Art

    PAN-AFRICAN FINANCIAL INSTITUTIONS ART. 19 of the Constitutive Act of the African Union THE FOUNDING TEXTS: THE AFRICAN CENTRAL BANK . THE AFRICAN INVESTMENT BANK . THE AFRICAN MONETARY FUND African Union Commission Department of Economic Affairs Department of Economics Affairs , African Union Commission Roosevelt Street, W21, K19 PO Box 3243 Addis Ababa Ethiopia © AUC, December 2017 TABLE OF CONTENTS FOREWORD 4 JOINT AUC-AACB STRATEGY ON THE ESTABLISHMENT OF THE 6 AFRICAN CENTRAL BANK (ACB) PROTOCOL AND STATUTE - AFRICAN INVESTMENT BANK 34 PROTOCOL AND STATUTE - AFRICAN MONETARY FUND 61 FOREWORD The global financial landscape has changed dramatically in The objectives of the Pan-African financial institutions include: recent years. Recognizing the benefits and specific gains in economic growth and development that can be derived from successful integration, Africa has taken a series of regional and Facilitating the mobilization of domestic and external continental integration initiatives. In this regard, the "Treaty resources to foster economic development and integration on the continent (AIB and PASE); Establishing the African Economic Community" (Abuja Treaty) was adopted in 1991 by the Organization of African Unity (OAU), Ensuring the stability of exchange rates between currencies and their mutual convertibility for the which later became the African Union (AU) in 2001. The treaty establishment of the African Central Bank (ACB); entered into force in 1994 and stipulates that the Economic Promoting African monetary cooperation in order to Community (EC) will be established in six (6) stages over a achieve African economic integration and speed up the economic development process in Member States (AMF period of 34 to 40 years maximum.