De-materialisation of securities on the financial markets under review

A quantification of the benefits that countries of the Central African economic and Monetary Community (Cemac) would draw from the de-materialisation of securities on the financial markets has not yet been made.

However, all officials who explained the interest of the Community (Cemac) which opened a seminar yesterday in Yaoundé, spoke as of a certainty in the near future.

Urbain Noël Ebang Mve, Secretary-General of the Ministry of finance, pointed out that even if the train of trade titles is well launched (1000 billion of securities issued in recent years), it is still time to harmonise procedures, to publicize the rules to the gathered actors (bankers, financiers, lawyers, insurers, employers, entrepreneurs), so that the activity offers the best for economies in the sub-region.

On paper, however, many good points were noted. Apart from the recent (April 2014) adoption of Community regulation establishing a registration scheme into account securities and other financial instruments issued in the Cemac zone, international recommendations called for the modernization of these activities, Central Africa would de-materialise securities exchanges.

Rafael Tung Nsue, president of the Commission for supervision of the financial market of Central Africa (Cosumaf), singularly stressed in this regard the simplification and securing savings that purchasers there affect. Not forgetting the need to unify the management and circulation of these titles in accordance with international standards. Mr. Ebang Mve added that financial resources that can be requested through this channel will experience optimal mobilization.

For now, despite the growth and the stability of the overall economy of Central Africa, the titles remain insufficiently involved in the financing of economic activity, with the banks being chilly against volatility.

The Yaoundé seminar will be, in the end, one of the first milestones to hatching what financial authorities want for titles. The Cosumaf which will pursue its awareness on the subject intends starting from the Cameroonian capital at the time when the seminar will close today, with detailed rules of monitoring of existing securities filing already on the market.