(Business in Cameroon) - The Cemac stock exchange, Bvmac, announced plans to increase its share capital currently at CFA6.8 billion. This decision comes three years after the unification of the region’s financial market in 2019.
The announcement, signed by the chairman of the board of directors, Henri-Claude Oyima, invites Bvmac shareholders to vote on this decision on September 15 in Douala. The shareholders will examine and fix the conditions and modalities of this increase of capital, we learn. This implies that the terms and conditions of the capital increase have not yet been finalized.
The first phase of the Central African financial market unification project in 2019 led to the effective institutional and physical merger of the two stock exchanges: the Douala stock exchange in Cameroon and Bvmac in Gabon. There were also the merger of the two regulators (Cosumaf and CMF) and the three central depositories (Autonomous Depreciation Fund, Bvmac, and Securities Settlement and Custody Unit). The second phase, launched in July 2019, consists of identifying and activating the main catalyzers of the regional financial market from which the single central depository is selected. Let’s recall that the Central Bank temporarily manages this single depository, pending the approval of a dedicated entity.
To revive Bvmac, the board of directors has instructed the Managing Director to encourage Cemac states to list certain entities and public companies on the stock exchange. For the time being, countries like Cameroon, the Central African Republic (CAR), and Chad are still lagging in this reform. According to the Central African Financial Market Supervisory Commission (Cosumaf), they promised in 2020 to list about five or six companies each. But they have not done so to date.