BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

African Export-Import Bank is reassuring about the increase in its operating expenses in 2019, but caution is advised ...

African Export-Import Bank, the multilateral import-export financing institution in Africa, announced on April 8, 2020 that it had generated $ 1.1 billion in revenue during the annual year ended December 31, 2019. The performance is due to increase in interest income as well as fees and commissions on services rendered.
African Export-Import Bank

Behind this increase hides an equally significant increase in operating expenses. They increased by 24% in 2019 reaching $ 108.1 million compared to $ 87.59 million in 2018. “This reflects the expected growth in the recruitment of professional staff, which in turn increased staff costs by 27%. The increase in staff was necessary to support the growth in business volumes. In addition, general and administrative costs increased by 15% with the support of the various strategic initiatives that the Bank was pursuing, "said the institution.

Added to these operating expenses, there was an increased risk of credit losses in accordance with the new calculation standard imposed by international standards (IFRS). The financial institution which is based in Cairo in Egypt, but listed on the Mauritius Stock Exchange, declared potential losses on credit (ECL) amounting to $ 326.7 million as of December 31, 2019, representing growth of 21%. compared to their 2018 level.

At the moment, this is not a major challenge. African Export-Import Bank ended 2019 with net earnings of $ 315.3 million, up 14% from the previous year. In this wake, the net income set aside increased to $ 631 million. It is now to be hoped that the environment will allow it to continue with the growth of its income; which for 2020 will not be obvious with the situation resulting from covid-19.

We also note that African Export-Import Bank has deeply used up its cash, with cash outflows of $ 805 million in 2019, four times more than in 2018. Its cash will also have to continue to support the repayment of its loans which represents according to data recent 71% of its liabilities. For the year 2019, the increase in cash holdings was only $ 307 million compared to $ 948.5 million in 2018.