Regional Securities Exchange SA (BRVM), based in Abidjan, has been rated as the most profitable stock exchange in Africa.
Regional Securities Exchange SA (BRVM), based in Abidjan, has been rated as the most profitable stock exchange in Africa, based on recent ranking list of financial institutions published by Alert Info.
“We hope that by 31 December, BRVM will reinforce first position as the most performing stock exchange on the whole continent of Africa“, Edoh Kossi Amenounve, General Director of BRVM, said at the recent ceremony to present the vision of the company.
BRVM, or Bourse Régionale des Valeurs Mobilières, is a stock exchange for the countries of UEMOA, the West African Economic and Monetary Unit, and other regional entities. The BRVM serves the countries of Benin, Burkina Faso, Guinea Bissau, Côte d’Ivoire, Mali, Niger, Senegal and Togo; the Bourse Régionale des Valeurs Mobilières d’Afrique Centrale, or BVMAC, serves the Central African Republic, Chad, Congo, Equatorial Guinea and Gabon.
Until recently, BRVM’s logo with the globe in the background symbolised international ambitions of the company. In the meantime, BRVM has rebranded itself and removed the blue globe from its identity. “We still continue to pursue the vision of the founders of the company“, Amenounvè explained. “Today, BRVM is a fully electronic stock exchange that complies with international standards. Twenty-five percent of transactions on the stock exchange are made by international investors“.
As of December 9, 2015, stock market capitalization of shares at BRVM reached 7.463 billion CFA francs, double the results of the end of 2012. The number of traded shares is estimated at 107 millions, up 96% from 2014. The value of transactions increased by 28% since 2014, reaching 313 billion CFA francs.
Thorny path to success
The first 15 years after its establishment were hard for BRVM. “This is very difficult – to be sure that newly established companies and SMEs can go very quickly to the process of listing on stock exchanges”, said Edoh Kossi Amenounve.
Amenounve saw the opportunity for growth in venture entrepreneurs and private equity funds. As a result, the Senegalese telecom company Sonatel, regional banking giant Ecobank and Ivorian soft-drink maker Solibra were listed on exchange. Last year, Bank of Africa Senegal and Total Senegal were listed on the exchange, and BRVM finally began to improve its performance. At the end of 2014, market capitalisation doubled in three years to around $13.8 billion.
Africa stock exchange landscape
There are 29 exchanges in Africa that represent 38 national capital markets. There also are two regional stock exchanges: the Bourse Régionale des Valeurs Mobilières, or BRVM, located in Abidjan, Cote d’Ivoire; and the Bourse Régionale des Valeurs Mobilières d’Afrique Centrale, or BVMAC, located in Libreville, Gabon.
Casablanca Stock Exchange of Morocco, founded in 1929, the Egyptian Exchange (EGX) and the JSE Limited are the oldest stock exchanges on the continent. The Casablanca Stock Exchange is one of Africa’s ten largest exchanges, followed by the Johannesburg Stock Exchange, EGX, the Nigerian Stock Exchange, the Namibian Stock Exchange (NSX), and the Zimbabwe Stock Exchange.