Yaoundé - 05 October 2022 -

BVMAC among the last stock exchanges in terms of market value in Africa

BVMAC among the last stock exchanges in terms of market value in Africa
  • Comments   -   Friday, 16 September 2022 17:02

(Business in Cameroon) - The Central African Securities Market BVMAC revealed it is one of the last stock exchanges in terms of market value in Africa.

"The top group includes the Johannesburg stock exchange in South Africa, in first place with a market capitalization of $1,005 billion (about CFA661,256 billion); the Nigerian stock exchange in second place with $74.33 billion (CFA48,897 billion); the Casablanca Stock Exchange in Morocco with $59.3 billion (CFA39,035 billion); the Nairobi Stock Exchange in Kenya with $23 billion (CFA15,131 billion); the Ghana Stock Exchange and BRVM with a capitalization of $10 billion at the end of 2021 (CFA6,578 billion)," BVMAC said in its 2021 activity report.

With its five lines listed on the equity segment, "as of December 31, 2021, the free-float market capitalization (total financial value of the listed company's securities available for purchase or sale on the stock market, ed) of Bvmac has increased by 16.89% from CFA30.970 billion at the end of 2020 to CFA36.201 billion in 2021. Regarding the outstanding bonded debts of Bvmac, it rose by 25.04% to CFA 650.126 billion at the end of 2021 from CFA519.937 billion the previous year. This increase was motivated by the admission to listing of four securities (...) for a total amount of CFA417, 392 billion,” reads the report.

Non-compliance with commitments

Despite this improvement, the Douala-based stock market remains a minor player in Africa. Also, the results achieved in 2021 are far from the minimum market capitalization target of CFA1,200 billion in the equity segment and CFA1,000 billion in the bond segment expected for the year. The reason, BVMAC stressed, is the exceptional dynamism of Beac's public securities market. Reputed to be more flexible and less expensive, the Beac market has captured virtually all the fundraising operations of Cemac states in recent years. In addition, CEMAC states have failed to meet their commitments under the Bvmac revitalization plan.

Indeed, while they all agreed at least two years ago to list public companies on the Bvmac stock market, only three countries have done so so far. Chad, CAR, and especially Cameroon are still lagging.

Written by: Brice R. Mbodiam

Translated from French by Firmine AIZAN

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