The Central African Securities Exchange (BVMAC) has taken a significant step towards enhancing the regional financial market. On September 15, the BVMAC published terms of reference for recruiting a consulting firm. The selected firm will be tasked with developing a roadmap to promote the regional financial market, foster a culture of stock exchange and finance, and create sustainable growth in financing through the financial market and stock transactions.
This initiative is part of the Project to Strengthen the Capacities of Regional Financial Institutions of the Economic and Monetary Community of Central Africa (CEMAC). The project aims to elaborate a roadmap that will facilitate the introduction of financial institutions in the stock exchange. According to the BVMAC, the consulting firm will be required to provide an inventory of financial institutions in each CEMAC member country. These countries include Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad.
The inventory will serve as a reference base and must include specific details. These details comprise the percentage of capital to be introduced in the stock exchange, theoretical stock market capitalization, strengths and weaknesses of each institution, and modalities for introduction in the stock exchange. The modalities may involve the cession of existing shares by one or multiple shareholders or the emission of new shares through capital increase.
The consulting firm will also be required to conduct a participatory consultative process. This process will involve various partners, including regulators, and will run for two months. Furthermore, the firm will have to develop a program based on results to be achieved over a five-year horizon. This program is expected to boost the regional financial market, which currently faces significant challenges.
The BVMAC's initiative seeks to address the current limitations of the regional financial market. The market is characterized by a low level of activity and limited participation from financial institutions. By introducing more financial institutions to the stock exchange, the BVMAC aims to increase the volume of financing through the financial market and stock transactions.
The successful implementation of this project is expected to have a positive impact on the regional economy. An increased participation of financial institutions in the stock exchange can lead to improved resource mobilization and allocation. This, in turn, can foster economic growth and development in the CEMAC region.
The recruitment of a consulting firm marks a crucial step in the BVMAC's efforts to revitalize the regional financial market. The BVMAC's efforts are geared towards creating a more dynamic and inclusive financial market. The outcome of this project will be closely watched by stakeholders in the region.
Key points
- The Central African Securities Exchange (BVMAC) has published terms of reference to recruit a firm to develop a roadmap for promoting the regional financial market.
