Dépositaire Central/Banque de Règlement (DC/BR) of UEMOA 1 – The West African Economic and Monetary Union 2 – Organization and features of BRVM 3 – BRVM recent development 4 – The Regional CDS organization 5 – The Regulatory framework 6 – The Regional CDS recent development 7 – 2014 Outlook 1 – The West African Economic and Monetary Union 1 – The West African Economic and Monetary Union (WAEMU) 1.1 History The West African Economic and Monetary Union (also known as UEMOA from its name in French, Union économique et monétaire ouest-africaine is an organization of eight West African states. It was established to promote economic integration among countries that share the CFA franc as a common currency. UEMOA was created by a Treaty signed at Dakar, Senegal, on 10 January 1994, by the heads of state and governments of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. On 2 May 1997, Guinea-Bissau, a former Portuguese colony, became the organization’s eighth (and only non-Francophone) member state. UEMOA is a customs union and currency union between the members. Its objectives include the following: Greater economic competitiveness, through open markets, in addition to the rationalization and harmonization of the legal environment The convergence of macro-economic policies and indicators The creation of a common market The coordination of sectoral policies The harmonization of fiscal policies 1 – The West African Economic and Monetary Union (WAEMU) 1.1 WAEMU Key indicators (1/2) Mali Population : 15,4 million WAEMU GDP : 40 063,494 Billion FCFA GDP 2011 : 5 016,968 Billion FCFA GDP 2012 : 5 140,406 Billion FCFA Investment 2012 : 967,981 Billion FCFA Senegal Population : 12,8 million GDP 2011 : 6 816,444 Billion FCFA Niger GDP 2012 : 7 225,049 Billion FCFA Population : 15,7 million Investment 2012 : 2 195,806 Billion FCFA GDP 2011 : 3 004,395 Billion FCFA GDP 2012 : 3 567,416 Billion FCFA Investment 2012 : 1 693,842 Billion FCFA Niger Mali Guinea Bissau Population : 1,5 million Burkina Faso GDP 2011 : 465,083 Billion FCFA Benin GDP 2012 : 482,635 Billion FCFA Investment 2012 : 35,420 Billion FCFA Population: 9,0 million GDP 2011 : 3444,303 Billion FCFA GDP 2012 : 3762,684 Billion FCFA Investment 2012 : 772,665 Billion FCFA Côte d’Ivoire Population : 22,7 million GDP 2011 : 11 359,822 Billion FCFA GDP 2012 : 12 460,064 Billion FCFA Investment 2012 : 1745,957 Billion FCFA Burkina Faso Togo Population: 16,3 million Population : 6,0 million GDP 2011 : 4905,342 Billion FCFA GDP 2011 : 1743,274 Billion FCFA GDP 2012 : 5546,285 Billion FCFA GDP 2012 : 1878,955 Billion FCFA Investment 2012 : 1245,614 Billion FCFA Investment 2012 : 422,829 Billion FCFA 1 – The West African Economic and Monetary Union 1.1 WAEMU Key indicators (2/2) Togo 5,870,000 Togo 3.76 Senegal 12,340,000 Senegal 14.45 Niger 14,860,000 Niger 7.13 Mali 15,100,000 Mali 10.28 Guinea Bissau Guinea Bissau 0.97 1,450,000 Côte d'Ivoire 24.92 Côte d'Ivoire 22,890,000 Burkina Faso 11.09 Burkina Faso 15,710,000 Benin 7.53 Benin 8,840,000 - 5.00 10.00 15.00 20.00 25.00 30.00 0 10,000,000 20,000,000 Population Togo 41.1 Senegal 237.2 Niger 946.9 Mali 147.6 Guinea Bissau 8.8 Côte d'Ivoire 417.9 Burkina Faso 37.1 Benin 110.9 0 500 1000 FDI 2010 (million USD) 2 – Organization and features of BRVM 2 – Organization and features of BRVM 2.1 History The West African Regional Stock Exchange, the BRVM started its activities on September 1998. It was unanimously set up by the West African Economic and Monetary Union (WAEMU) countries, namely, Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. December 1993 : Project of creation of the Regional Financial Market adopted by the Council of Ministers of the WAEMU January 1994 : Creation of the WAEMU December 18, 1996 : Establishment of the BRVM and the CDS (DC/BR) (Privately owned) September 16, 1998 : The BRVM and the DC/BR started operations (centralized trading with a cycle of settling / clearing at T+5) ) 24 March 1999 : Decentralized electronic trading system 12 November 2001 : Daily trading July 2007 : Settlement cycle from T+5 to T+3 16 September 2013 : Continuous trading 2 – Organization and features of BRVM 2.2 Organization Public Entity Capital Markets Authority: Regional Council for Public Savings and Capital Markets (CREPMF) Regulates the financial market of the WAMU; Authorizes financial transactions on the primary market; Controls the secondary market and the intermediaries. Private Entity Market Operators Market intermediaries Brokerage Companies (SGI); • Regional Stock Exchange (BRVM); • Asset Management companies; • Regional Dépositaire Central • /Banque de Règlement (DC/BR) • Wealth management Companies (SGP); • Business providers; • Securities Advisors; • Sales people; 2 – Organization and features of BRVM 2.3 Features Fully demutualized stock exchange structure 1 regional electronic stock Exchange for the 8 countries of WAEMU World-class stock exchange infrastructure across the Region BRVM operates under the regulatory oversight of the Capital Markets Authorities (CREPMF) Modern and disclosure-based Listing Rules with an Automated Trading Systems BRVM became a affiliate member of the World Federation of Exchanges (WFE) in 2012 Electronic link with Regional CDS depository which complies with G30 Standards 3 – BRVM recent development 3 – BRVM recent development 3.1 Primary market (1/1) From 1998 to December 2013 : 3 542 billion FCFA were raised in the primary market. Public and Private entities 991 billion FCFA 27,98% Governments bonds 1 919,64 billion FCFA 54,19% Public offer on equities 623,61 billion FCFA 17,60% Foreign placements 8,07 billion FCFA 0,23% 3 – BRVM recent development 3.2 Secondary market (1/6) BRVM 10 et BRVM All shares Sectors indices (2008 –2013) (2013) 140.00% +126,21% 300 31/12/2013 120.00% +35,66 246.34 100.00% 250 % +90,48% 232.02 192.08 +40,6 80.00% 200 182.96 4 % 158.49 143.6 178.17 31/12/2013 60.00% +55,73% +52,62% 150 159.1 +43,05% +39,87% 138.88 132.05 40.00% 100 BRVM 10 BRVM Composite 20.00% BRVM- 50 Agriculture 0.00% BRVM- 0 BRVM- 6,54% Autres BRVM- BRVM- BRVM- BRVM- 2008 2009 2010 2011 2012 31-Jan-13 31-Dec-13 -20.00% Transport Secteurs Industrie Distribution Finances Services Publics 3 – BRVM recent development 3.2 Secondary market (2/6) Market Cap : Equity market Market Capitalisation : bond market (2008 – 2013) (2008 – 2013) 1,200 29,12 % - Dec 31st, 2012 Market cap exceeded 4k 41,10 % - April 18th, 2013 : Market cap exceeded 1k 1,073 billion FCFA billion FCFA th Billion 1,001 6,000 - May 27 , 2013 : Market cap exceeded 5k billion FCFA 5,633 1,000 5,001 5,000 800 4,031 4,000 3,471 3,337 600 515 3,000 3,177 2,808 400 457 2,000 200 1,000 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 31-Jan-13 31-Dec-13 18-Apr-13 27-May-13 31-Dec-13 +68,8 % +108,34 % 3 – BRVM recent development 3.2 Secondary market (3/6) Total market Cap (2nd january 2013 – 31st décember 2013) 8,000 +39,01 % 6 706 Billion 7,000 (31 dec 2013) +41,10 % 5 633 6,000 (31 dec 2013) 4 824 (2 jan 2013) 5,000 3 992 (2 jan 2013) 4,000 3,000 +29,12 % 2,000 1 073 831 (31 dec 2013) (2 jan 2013) 1,000 0 BOND MARKET EQUITY MARKET Total 3 – BRVM recent development 3.2 Secondary market (4/6) Turnover 1998-2013 250 231 + 33 % 193 200 146 150 Billions 100 111 65 81 50 0 2006 2007 2008 2009 2010 2011 2012 2013 +196,9 % 3 – BRVM recent development 3.2 Secondary market (5/6) Most traded by volume in 2013 Most traded by value in 2013 54,427,845 84,61 SONATEL SN billion FCFA 12,94 ONATEL BF billion FCFA 7,28 billion SGBCI FCFA 5,36 billion SAPH CI FCFA 4,910,275 426,098 214,884 158,273 4,81 billion CIE CI FCFA BF SN ETI TG PALMCI SAPH CI ONATEL SONATEL 3 – BRVM recent development 3.2 Secondary market (6/6) 5 highest 5 lowest 600 UNIWAX CI (+550 %) 500 400 300 200 SERVAIR CI (+142,21 %) NEI CEDA (+133,46 %) BOLLORE (+128,57 %) VIVO ENERGY (+120,51 %) 100 0 SICOR CI (-7,50 %) CFAO SAPH SOGB (-14,78 %) (-15,04 %) (-17,69 %) -100 TRITURAF (-38,75 %) -200 4 – The Regional CDS Organization Dépositaire Central/Banque de Règlement of WAEMU 4 – The Regional CDS organization One CDS for 8 WAEMU countries. Operational since September 1998 Fully demutualized CDS Provides Depository, Clearing and Settlement services to market brokers and custodian banks Manages equity and debt instruments Full member of ANNA covering 8 countries of WAEMU in 2013 Efficient system that has greatly reduced risks: - Meets international standards - Securities are dematerialized (+ISIN numbers issuance) - DVP (T+3) - Net settlement of funds with central bank money - Settlement guaranteed through a Market Guarantee Fund - Participants settlement limit based on their contribution to the Guarantee fund. - Buy-in procedures in the event of securities settlement failure No failed trades until now. 5 – Regulatory framework of the Regional CDS Dépositaire Central/Banque de Règlement of WAEMU 5 – Regulatory framework of the Regional CDS The Dépositaire Central/Banque de Règlement of WAEMU Act 1998 provides the legal framework for the operations of the CDS.