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Ten years after launching the process of setting up the financial market in Central Africa, two rival exchanges have been made possible without the activity itself to achieve the desired objectives. An interview with Alexandre Gandou, chairman of the Supervisory Board of financial markets in Central Africa.

Alexandre Gandou: "What we should do is work on the harmonization of regulations, so that the same rules apply to all stock markets. " 

Interview by François Bambou, Yaoundé

Les Afriques : Mr. President, what is your assessment of ten years of development of financial sub-regional market ?

Alexandre Gandou : It is a generally positive assessment in the sense that we finally managed to implement this financial market of CEMAC making available platforms for trading and settlement. These are available in Libreville and Douala.

« The implementation of the government bonds market is causing a real revolution in the attitude of the States. The countries of the subregion must abandon the old system which was to raise money from the Central Bank. »

So the market exists there is no longer an illusion of it, we've managed to do some operations too. On the regional market, is rather the bond who is active with four loans made holistically. The first one concerns the Gabonese government and has an amount of 81 billion, and three others for two banking companies, whose BGFI Bank have respectively raised 40 billion and 10 billion, and finally a business that has recently made a loan bond of 400 million. On the Cameroonian market at Douala Stock Exchange, is rather the stock market that has been active. It was therefore assisted in operations of transfer of state shares in some companies.

LA : In the same tone, how far it went the implementation of the government bonds market with an open enrollment? And which is, in your opinion, the potential of the market?

AG : The potential of the government bonds market is very important. I must say that already, the implementation of the government bonds market caused a real revolution in the attitude of the States. The countries of the subregion must abandon the old system which was to raise money from the Central Bank. This advanced significantly in the process of setting up this market for public debt, all the texts are ready, a law has been issued to implement this market, and a regulator is in place that includes other financial sector regulators (stock market, banks, Central Bank). So the government bonds market is ready and it remains only to states to take the step to come forward for this offering. I think that at the end of the year 2009 we will start the operations in this market.

LA : We've learned that for the loan that the IFC wants to make at the Douala Stock Exchange, the Supervisory Board of financial markets in Central Africa has co-authored the briefing with the AMF of Central Africa. What meaning should we give to this joint act?

AG : By co-signing this document, we want to simplify the procedures within IFC, which will then remove the need to obtain two visas (one in Cameroon and another in the COSUMAF, Editor's note), and allow it to benefit our market transaction which gives us the titles of high quality and offers another resonance in our market. So with the operation of the IFC we can silence our differences of approach, in order to serve only the interests of investors and issuers. It is also an indication of what we will do in the future so that our market is truly integrated and regionally active.

LA : What are the prospects for integration of two competing financial centers from the sub-region at this time?

AG : I think what we should do is to work on the harmonization of regulations, so that the same rules applies to all stock markets. We must also work to ensure that regulators are talking. So, we have to create a college of regulators, so that if there is any problem in the market, the regulation speaks with one voice.

LA : How do you explain that the two financial centers slow the take off despite the political will of the States that have even the financial means of support?

AG : I think this is due to the fact that the message is not clearly transmitted, because the potential issuers are not very accustomed to this kind of activity. And on top of that they must come in an environment where there is a legal risk, where the legislation is not the same, and they have to envisage a problem of costs that discourage potential issuers and led them to return to the banking market . Hence the need to introduce consistency in the financial market of the CEMAC. There is, moreover significant challenges which require that we put together to meet them and to allow our market to grow. Among these challenges, I would mention the problem of enriching the official symbol. We must find a way to bring our local businesses to diversify their sources of funding from raising some funds in our capital market. For example, we've managed to obtain, from the beginning fiscal incentives. In my opinion, these advantages granted by the States have not been sufficiently popularized. For example, too few people know that a company that opens its capital can benefit from a reduction of corporate tax up to 25%.