The fourth edition of the UEMOA Public Securities Market Meetings begins today in hybrid mode under the theme of “portfolio management in
UMOA: performance lever for investments in the MTP.” The opportunity to return to collective management in the WAEMU zone, with 25 management companies and 100 UCITS. The dynamics of the market can be assessed through its evolution from 65 billion in assets under management in 2010 to 700 billion in 2020.
As Adrien Diouf, Director General of Agence UMOA-Titres, recalled at the opening of the third 2021 edition of Public Securities Market Meetings (REMTP), collective management makes it possible to “support our States and strengthen the resilience of our market”.
The financing gap of the WAEMU countries is estimated at 100 trillion FCFA according to Serge Ekué, president of BOAD, based on the development plans of the countries of the zone.
Collective management makes it possible to diversify risks, with nevertheless smoothed gains. The WAEMU market requires reforms in the opinion of operators who call for the singleness of the central depositary, for better market animation with liquidity contracts.
The market is dominated by banks which represent up to 90% of subscriptions against 20% in Nigeria, 40% in Kenya. Offshores are 20% in Nigeria, Ghana and Kenya against less than 1% in WAEMU. Local institutions, followers of the “buy and hold”, weigh 8.63% of the market or 1200 billion CFA francs. Offshore institutions weigh 100 billion FCFA, estimates Abdoulaye Karamoko of Enko Capital. WAEMU, which has 5 deposit funds, requires a permanent consultation framework and updated community texts. Note that banks that hold 25% of their balance sheets in government securities cannot hold 30-year assets with limited transformation.
Issues from Kenya to Morocco
The ambition of the public securities financial market is to strengthen the debt in local currency. In 2019, we noted 7,000 billion FCFA raised by auction and 1,700 billion by syndication.
Collective management accounts for 0.8% of GDP in Kenya against 26% in Morocco. In the first example, 90% of the funds belong to institutions. But from Nairobi to Abidjan, the mobilization of long-term funds remains a strategic objective. As of March 2020, funds under management were estimated at $590 million under management. Money Market Funds represent 90% of the Kenyan market. In a country like Morocco, 90% of fund investors are institutional investors.
