Page 364 - Atouts Economiques Cameroun-2019-GB
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The trading room of the Douala Stock Exchange
Since 2010 the State has been developing its strategy to solve the problems of financing the economy. The strategy is based on the issuance of public securities. Two categories of instruments are currently being favoured:
• Fungible treasury securities (BTAs) to solve in the short term the cash requirements of the State;
• Bonds and fungible treasury bonds (OTAs) for the medium and long-term financing of public investment.
In the news of market players, the International Finance Corporation (IFC), a subsidiary of the World Bank Group, organized on 17 and 18 September 2018 in Yaoundé, a sub-regional workshop on capital markets in Central Africa, on their challenges and opportunities. The workshop took place following a decision of the Council of Ministers to BEAC authorizing IFC to launch a series of bonds in the Central African financial markets in their local currency (CFA F). The workshop was an opportunity for the World Bank Group subsidiary to present similar experiences of financial market rappro- chement, using East Africa and South-East Asia cases of fund-raising in local currency,
especially with the Indian Rupee, which also allowed the country to open on its offshore mar- ket to the Asian region. In Africa, the IFC has already issued in local currency: Cameroon in 2009 (7.5 billion CFA F), Nigeria (naira) and Rwanda (RWF, Rwandan franc).
The work, in which the Financial Markets Committee of Cameroon took part, was devoted on 17 September to the institutional, regulatory and strategic context of capital markets in Central Africa. The day of 18 September was dedicated to the technical aspects and the sharing of expe- riences through practical cases.
Issuing local currency bonds has the advantage for the issuer, be it a State or an international ins- titution, of avoiding the exogenous shocks of using a currency (foreign currency), particularly in the case of fluctuation in the exchange rate with the local currency.
Many experts believe that funding through the stock market solves two key problems in the entrepreneurial environment: finding loan funds at a reasonable rate, making the borro- wing company credible, and at the same time guaranteeing its partners that they can trust her in the long run. Pierre Ekoule Moungue, the CEO of the Douala Stock Exchange in his per- manent invitation to the actors of the national and even regional economic life says it preci- sely: “This new vehicle of financing of the Cameroonian economy allows some, the com- panies, the State of Cameroon, and the local authorities, to have long-term financing and, to others, the institutional and private investors, to best value their investments”.
The state, which is also looking for money to finance its major projects, has understood and experienced it. Nevertheless, Cameroonian com- panies do not seem to see so many benefits beyond the paper on which they are painted. The paradox is remarkable even from the point of view of the Ministry of Finance (MINFI) which has conducted an advertising campaign for the stock market: public or private companies, are still reluctant to apply on the financial market. However, the same MINFI regrets that Cameroonian companies, whether owned by the State or controlled by the private, constantly com- plain about the difficulties of access to financing in conventional banks.
A recent charm offensive by the Ministry of Finance allowed experts of the Directorate General of the Treasury to travel the country and first of all to give economic operators the keys to access the local financial market. “The rates are attractive, benefits and opportunities in scoring and mobilizing resources are competitive”.

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