The 9th session of the members of the Permanent Consultation Framework for Public Treasurys of the Economic and Monetary Community of Central Africa (CPC-TP-CEMAC) was opened, Wednesday March 6, 2024 in Brazzaville (Republic of Congo), by Mr. Gatien ONDAYE OBILI, President of this community body, and Advisor for monitoring and cash management to the Congolese Minister of Economy and Finance. 

These meetings are placed under the theme: “Issue techniques and improvement of the participation rate of Specialists in Treasury Securities (SVT) in the CEMAC Treasury securities market”. 

For five days, until Friday March 8, participants from the six CEMAC member countries will discuss two panels and a focus, with the following sub-themes: CEMAC Treasury securities issuance operations: feedback;Auction, reopening of lines, domestic syndication and securitization; Participation of SVTs in the issuance of treasury securities (own account and customer account): inventory and areas for improvement; and Problem of popularizing long-term savings products and financing the CEMAC economies: current situation and perspectives. 

In his welcome remarks, the National Director of the Bank of Central African States-Congo (BEAC-C), Mr. Serge Dino Daniel GASSACKYS, indicated that this session is a sharing of experiences. According to him, the question of financing economies, already crucial, is becoming difficult due to the various crises plaguing the world with, as a corollary, the weak mobilization of external financing. 

“The CEMAC treasury securities market continues its evolution, with an outstanding amount which stood at 6,408.5 billion CFA francs at the end of January 2024. This is composed, at 86.8%, of bonds assimilable treasury bonds (OTA) and, at 19.4%, assimilable treasury bonds (BTA). The average cost of issues remains on the rise: it increased from 4.72% to 7.34%, between June 2018 and January 2024. The participation rate of SVTs remained both low and stable at 30.39%, in January 2024, compared to 31.9% in 2020. The average subscription rate for issuances fell significantly, from 201.8% to 77.49%, between June 2018 and January 2024, resulting from numerous unsuccessful issuances,” addedMr. Serge Dino Daniel GASSACKYS. Before continuing, specifying that “this session will consist of taking stock, firstly, of the different techniques for issuing CEMAC public securities; then, the participation of Treasure Value Specialists who, through their role as market leaders, are major players in mobilizing resources for the benefit of States.” 

For his part, the President of the CPC-TP-CEMAC, Mr. Gatien ONDAYE OBILI, addressed the representatives of the public treasuries of the States and the regulators of the capital markets of CEMAC, to emphasize that this session opens in a context marked by several highlights. This concerns, in particular, the installation of members of the BEAC Government, which took place on Friday March 1, 2024 in Yaoundé (Cameroon). This installation, in his opinion, augurs a new dynamic in the conduct of monetary policy. 

Other highlights: the launch, in March 2024 in Brazzaville, by the Development Bank of Central African States (BDEAC), of its bond issue, amounting to 50 billion CFA francs; and the opening, Monday March 4, 2024 in Brazzaville, of the 8th meeting of the Technical Committee of the Economic and Financial Reforms Program (PREF) of CEMAC, in charge of monitoring the mobilization of financing and the implementation of integrative projectspriorities (PIP), presented at the Paris Round Table held from November 28 to 29, 2023.

 “For the year 2024, repayments of capital and interest amount to 2,514 billion CFA francs. Such a perspective is not without risks. For example, refinancing risks and weak investments, which are essential to promoting strong, sustainable and inclusive economic growth. If the market offers suitable instruments, it is up to us to determine the best condition and the best organization to achieve this. In this, we should draw inspiration from good international practices in terms of selection, project management and mobilization of funds,” said Mr. Gatien ONDAYE OBILI.

The latter proposed the “creation of a multidisciplinary working group, responsible for reflecting on the allocation of resources raised on the market, in favor of growth-promoting projects, on the basis of objective and transparent criteria to be defined together”. 

The Communication Unit of the Ministry of Economy and Finance 

Photo credit: B2B Communication