It is done ! Small and medium-sized enterprises (SMEs) of the 8 countries of the West African Economic and Monetary Union (WAEMU) will now be listed on the BRVM [Regional Stock Exchange]. And enjoy an advantage like raising capital in the regional financial market to develop their business. A privilege granted so far to large companies.
The launch of the 3ème Compartment of the listing institution called “BRVM small caps” and dedicated to SMEs with high growth potential took place on Tuesday 19 December. Sponsored by the Ivorian Minister of the Economy and Finance, who represented Prime Minister Amadou Gon Coulibaly, the ceremony brought together officials from regional financial institutions and entrepreneurs.
The opening of this new Sub-Fund should take place years ago. Indeed, “the decision to set up a support framework for SMEs of the Union dates back to the Conference of Heads of State and Government held in Ouagadougou, 17 January 2008,” said Mamadou N’Diaye, Chairman of the Regional Council for Public Savings and Financial Markets (CREPMF). Decision taken following an observation. “The achievements of the BRVM, although laudable, have nevertheless left SMEs on the platform, while they represent more than 80% of the economic fabric of our sub-region and employ about 25% of the active population. It appeared more than necessary to embark on this stock market adventure by offering them an access window for the financing of their long-term investments, “said Kossi Amenounvé.
The new provision provides a solution to the difficulties of access to finance criticized by business leaders. In the line of sight of the general director of the BRVM, the family-based companies. Which, very often, do not survive after the death of their founders. “The reason being that in their lifetime, they have not opened the capital of their companies to other people,” laments Kossi Amenounvé. The 3ème Compartment resolves the issue by ensuring the sustainability of the company and make it a “champion”. The savings of the diaspora is also targeted.
Other advantages
In addition to the requirements of good governance, the 3e Compartment offers advantages for SMEs. Access to long-term capital, credibility of the company with banks and other partners, reduction of financial charges, liquidity of shares, permanent valuation of the company, attraction of new investors, …
Conditions of admission
The SME wishing to access the 3e Compartment of the BRVM must be incorporated as a public limited company. She must produce a business plan over a horizon of 3 years, have certified financial statements of the 2 fiscal years preceding the application for admission, have a capital of at least 100 million CFA francs, have a float of at least minus 10% of the capital to be at least 500.000 securities, having signed a contract with a Listing Sponsor.
Companies have already expressed interest. “Startups are not eligible,” insisted the boss of the Regional Stock Exchange.
The BRVM is in its 21th year. It was created on December 18 1996 and today 45 listed companies, for a market capitalization 6.339,9 billion CFA 18 December 2017.
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