The Central African Securities Exchange (Bvmac) has presented a new set of general rules to the Financial Market Surveillance Commission (Cosumaf), which is the regional financial market overseer.
The CEO of the institution, Banga Ntolo, disclosed this during the third Africa Capital Markets Forum (ACMF)that held in Douala past April.
The proposed regulations aim to revamp the sub-regional financial market to facilitate access for low-income individuals.
Among the major reforms is stock splitting. This measure would enable highly volatile yet high-yield securities to maintain a stable face value, making financial securities more affordable for people with modest incomes.
“At CFA900, CFA600, or CFA300, even a student with a simple e-wallet could consider buying a security. The goal is to make securities purchase not only limited to bank account holders but also accessible via e-wallets,” explains Mr. Banga Ntolo.
This regulatory proposal could democratize access to the stock market, which has been out of reach for many citizens.
This reform also focuses on the digitization of the financial market. “This means we need to collaborate with fintechs and other actors capable of dematerializing various processes, such as order taking, back-office operations, as well as settlement and delivery,” stated Louis Banga Ntolo.
He emphasized that this transformation is a long-term process requiring regulatory approval to proceed.
With Cosumaf’s approval and the adoption of the new regulations, “everyone will be able to access the market directly from their phones.
There will be no need to visit branches anymore,” he said, noting that this reform is the main initiative Bvmac will undertake in 2024. “And we will succeed,” he concluded.
Financial stakeholders are convinced that this reform will increase the number of participants in the Cemac financial market.
Currently, only 8,500 individuals have a securities account to participate in a region of 68 million inhabitants. It is important to emphasize that the Cemac stock market reflects the continent’s situation in general, as all African stock exchanges combined represent only 1% of the global market capitalization.
