WAMU-Securities: Lomé Hosts 2nd Edition of Sovereign Securities Day

Finance

Thursday, 27 June 2024 16:01

WAMU-Securities: Lomé Hosts 2nd Edition of Sovereign Securities Day

(Togo First) - Over the past decade, the financing market for WAEMU countries has been extremely dynamic. But challenges remain.

The WAMU-Securities Agency held the second edition of its Sovereign Securities Day (JTS) in Lomé, on June 27. The annual event gathered several financial players of the WAEMU. This year, participants focused on the market’s development.

"For several years now, WAEMU States have been facing growing financing needs, linked not only to ambitious development programs but also to the management of health and security crises impacting our countries. Against this backdrop, the public securities market (MTP), and by extension the regional financial market, has shown increased resilience,” said Oulimata Ndiaye Diasse, director of the WAMU-securities agency.

"Our market dedicated to financing Uemoa zone states and our economies has evolved very strongly over the last ten years. The amounts mobilized have risen sharply from year to year, from nearly 2,000 billion a year in 2013, to 7,194 billion in 2023 after an exceptional peak of nearly 10,000 billion in 2020 at the time of Covid-19," she added.

Development Imperative

While the primary market has undergone profound changes, not only in terms of amounts, but also in terms of practices, especially "the strengthening of instrument liquidity and market depth, the assimilation of securities, the standardization of instruments issued, the implementation of a yield curve, or the strengthening of transparency and availability of information", challenges remain in the secondary market, Diasse stressed.

"Among the pillars of the development of a local bond market, is not only the expansion of the primary market, which we are delighted with in view of the results, but also and above all the development of the secondary market".

Indeed, this segment, despite strong ten-year growth and apparent dynamism (the annual volume traded rose from 100 billion in 2014 to almost 2,073 billion in 2023, with the number of participants rising from 18 to 93), faces several difficulties. These include the search for securities, the definition of fair prices for instruments, the finalization of transactions, and the turnover rate of the portfolio of public securities issued by auction.

New infrastructures

Faced with these resource mobilization challenges, work is underway to launch a quotation platform designed to enhance market transparency.

Octave A. Bruce

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.