Growth of West Africa's Regional Stock Exchange

The Bourse Régionale des Valeurs Mobilières (BRVM) has emerged as a standout performer among West African stock exchanges over the past three years, with investors increasingly turning to the stock market to capitalize on the robust economic growth witnessed in Cote d'Ivoire and other members of the francophone West Africa's monetary union. EDOH Kossi Amenounve, the CEO of BRVM, highlighted the exchange's remarkable journey in a recent interview with CNBC Africa's Wole Famurewa. Since the political crisis in Cote d'Ivoire in 2012, BRVM has exhibited strong growth, culminating in being named the best stock exchange in Africa in terms of market and desk performance in 2015. This success can be attributed to the region's economic growth, particularly in Cote d'Ivoire, which has established itself as a key player in West Africa and the francophone zone. The influx of institutional and retail investors into the market, purchasing shares and bonds, has further fueled BRVM's expansion. Last year marked a significant milestone for BRVM as it celebrated its 20th anniversary and achieved frontier market status, joining the MSCI Africa Index for frontier markets. The addition of four new companies to the exchange brought the total number of listed companies to 43 by the end of the year. Notably, two of these companies originated from Cote d'Ivoire's privatization process, while the other two hailed from Burkina Faso and Mali. The exponential growth in market capitalization, which currently stands at approximately $12.5 billion, reflects BRVM's impressive performance, with market capitalization now three times higher than it was in 2012. Although BRVM has made significant strides, foreign investors and market observers are eager to see more companies listed on the exchange to mirror the region's dynamic growth and entrepreneurial spirit. Comparing the exchange to Nigeria, where numerous notable entrepreneurs have listed their companies, such as Dangote and Tony Elumelu, EDOH Kossi Amenounve emphasized the untapped potential in West Africa for local companies to leverage the capital market for long-term financing. Despite the availability of many large local companies that meet listing requirements, hesitancy persists among entrepreneurs due to concerns about diluting ownership and the transition from traditional banking to capital market financing. Amenounve stressed the importance of transparency and good governance for companies looking to compete effectively at national, regional, and continental levels. Encouraging entrepreneurs to embrace the capital market, Amenounve called on governments to spearhead privatization efforts and pave the way for large state-owned entities in sectors like energy, water, and telecommunications to list on the stock exchange. By listing these significant players, such as major oil and telecommunication companies, the market capitalization of African capital markets could potentially double or triple, signaling a promising future for the region's financial landscape.