CEMAC zone issuance of bonds increased in 2015

With the sluggish economic environment strongly impacting in the economies of the Economic and Monetary Community of Central Africa (Cameroon, Congo, Gabon, Equatorial Guinea, Chad and Central African Republic), the public stock market of the common Central Bank of the six above-mentioned countries has become more dynamic.

According to statistics revealed at the end of the first meeting in 2016 of the Monitoring Committee of the Regulation and Conservation Unit (CRCT), which took place on 14 April 2016 at the headquarters of the Central African States Bank (BEAC) in Yaoundé, the issuance of bonds by the States doubled in 2015 compared to 2014.

These operations by the Treasuries of the CEMAC member States peaked at FCfa 635.8 billion as at February 2016, against FCfa 312.4 billion for the same period last year. "This sharp increase in the States resorting to the public stock market fits within an economic context characterised by the tightening of banking liquidity observed since the first half of 2015, in relation with the weak international oil prices in most of the CEMAC economies", the BEAC explains in an official communiqué.

Indeed, faced with the drop in world prices for oil, which reduced by 20% (Cameroon) to more than 70% (Equatorial Guinea) the budgets of the CEMAC countries, the States scaled up their operations on the public stock market of the Central Bank, in order to raise the resources necessary to finance the budget deficit.

Thus, Cameroon, main player on this market since its creation in 2011, had announced, from January 2015, issuance of bonds to the tune of FCfa 375 billion, against FCfa 160 billion for Chad and FCfa 135 billion for Gabon.

2015 on the public stock market of the BEAC was also characterised by the entry of a new country on the market, being Equatorial Guinea, whose oil revenues represent 85% of the national budget. The introduction of this African oil kingdom thus brought to five the number of CEMAC countries operating on the public stock market of the central bank. To date, the only operation expected remains that of the Republic of Congo.

In this economic situation, the public stocks operations on the BEAC market should again grow in volume in 2016. Indeed, according to the provisional schedules of operations, as communicated by the States to the central bank, according to regulations, the two main players of the market, Cameroon and Gabon, are planning to issue bonds respectively worth FCfa 370 and 195 billion. Thus a total envelope of FCfa 565 billion.