Central Africa’s monetary authorities are preparing a new push to bring financial institutions onto the regional stock exchange, an effort that could test whether bank listings can help turn one of Africa’s thinnest capital markets into a more useful source of finance.
The Bank of Central African States (BEAC) is seeking a consulting firm to draw up a roadmap for listing financial institutions operating across the six countries of the Central African Economic and Monetary Community. The assignment covers Cameroon, the Central African Republic, Chad, Congo, Equatorial Guinea and Gabon.
The procurement notice, dated Sept. 9, says the consultant will identify financial institutions that could be listed on the Central African Stock Exchange, known by its French acronym BVMAC.
The work is financed through the African Development Fund as part of a wider project to deepen Central Africa’s financial sector.
CEMAC already has a single regional exchange, but the central challenge is turning that institutional framework into an active market with more listed companies and deeper trading.
BEAC’s terms of reference say BVMAC currently has 25 brokerage firms but only six listed companies and about 20 bond lines. They also point to weak activity in both primary and secondary markets, limited awareness among potential issuers and a narrow investor base.
That imbalance helps explain why financial institutions are an obvious target.
Banks, insurers and other regulated financial companies tend to be among the region’s larger and more closely supervised businesses. Bringing more of them to market could expand the supply of shares while forcing listed institutions to meet disclosure, governance and financial-reporting requirements expected of public companies.
But the planned study also highlights how much remains unknown.
BEAC is not saying that a defined group of banks is ready to list immediately. Instead, the consultant has been asked to determine which institutions could realistically come to market. For each candidate, the study is expected to examine factors including equity, revenue, profitability, debt, solvency, governance, auditing and dividend history.
It must also estimate theoretical market capitalization, identify the proportion of capital that could be floated and recommend how a listing might happen. Options include existing shareholders selling shares or institutions raising fresh capital through new stock.
That distinction matters.
A larger number of quoted companies would improve the exchange’s headline numbers, but listings alone would not necessarily create a liquid market.
A bank whose shareholders sell only a small stake could technically become public while leaving few shares available for regular trading. Likewise, adding issuers without expanding the pool of pension funds, insurers, asset managers and individual investors willing to trade could leave secondary-market activity subdued.
BEAC’s own diagnosis recognizes that problem. The terms of reference call for measures to increase the supply of securities, build long-term savings, broaden the investor base and strengthen integration between CEMAC countries’ financial systems. They also envisage what the document describes as proactive action by governments to stimulate the initial supply of securities.
That raises one of the most consequential questions for the forthcoming roadmap. Will authorities rely on persuasion and incentives, or could they eventually require some institutions to list?
The procurement documents do not propose compulsory listings. They instead commission a five-year program of concrete actions after consultations with BVMAC, regulators and other market participants. The consultant has three months to complete the assignment, with a country-by-country inventory forming a central part of the work.
The exercise comes seven years after BVMAC absorbed the former Douala Stock Exchange in 2019 as CEMAC consolidated its previously fragmented market infrastructure. The merger created a single regional exchange, but the latest assignment shows that authorities still see the supply of listed securities as a central weakness.
The real test will be whether the roadmap produces more than a longer list of quoted companies. BEAC’s own diagnosis points to weak trading activity and a narrow investor base, meaning new listings would have to be accompanied by enough freely available shares and sufficient demand to make the market more active.
If the roadmap identifies credible candidates and gives them a workable path to market, financial-sector listings could expand the supply of equities on BVMAC. But BEAC’s own assessment suggests that increasing the number of listed companies is only part of the challenge. The harder task is building the demand and market activity needed to make those listings matter.
