Ivorian reporters were briefed this weekend about investment opportunities at the Regional Stock Exchange (BRVM), during a press club. And this, in order to better inform their readers and listeners.
This press club, organized by the Ivory Coast Economic and Financial Journalists Association (AJEFCI), was led by Mr. Brice Kouao, founder of the School of the Stock Exchange on the theme “Making information on the stock market more accessible to the general public, encouraging people to public savings thanks to the Brvm and the introduction of Orange Côte d’Ivoire to the Brvm”, according to Apanews.
In front of the journalists who came to this platform, at the Maison de la presse in Abidjan, Mr. Kouao explained on Friday the stakes of investing in the stock exchange. He began by pointing out that the WAEMU financial market was created to allow companies and states to raise finance on more favorable terms.
However, he will say, investors and savers can buy shares or subscribe bonds through management and brokerage companies (SGI). In addition, entities listed on the Brvm share some of their profits and when it comes to bond issues they pay interest to investors.
In 2021, more than 300 billion CFA francs of income were distributed in terms of dividends, he said, inviting them to invest in the regional stock exchange, because these are resources also available to the general public who must know how to invest their capital and capture the its share of wealth on this financial market.
For a company like the Société de distribution d’eau de Côte d’Ivoire (Sodeci), “48.5% of the capital was made available to the public”, revealed the founder of the School of the Exchange, noting that the share which in October 2020 cost 2,500 Fcfa, today it is worth 5,000 Fcfa.
“Anyone with savings, even 20,000 FCFA or 25,000 FCFA per month, can buy shares and build up their capital gradually, because you can invest on the stock market every week, every month based on your income,” he said. adding that at the end of the year the company distributes dividends in proportion to the shares held.
“According to Bceao data of March 2020, 71% of bank loans in the Ivorian system are loans of less than one year and only 15% are loans of more than 5 years. So, in an economy that is supposed to build infrastructure (…), how can we get more than 2/3 of the funding that is short-term funding? He wondered.
Consequently, “a company that wants to raise long-term funds is blocked in the current state and you hear it in the speech of entrepreneurs, but in reality they (these companies) should not have been blocked since in capitalism, there are different financing mechanisms ; the banking system but also the financial markets ”, he continued.
Mr. Brice Kouao pointed out that on the financial market, bond issues are defined in a period and by the companies themselves. He also recalled that the regional stock exchange admits small and medium-sized enterprises in its 3rd sector, of which about thirty SMEs make up the cohort.
Referring to the introduction of Orange Côte d’Ivoire to Brvm, Mr. Kouao explained that when a company enters the stock market, it is from the information note that its value is evaluated. And the investor must know that “there is an investment opportunity when an asset is offered at a price below its value”.
The president of AJEFCI, Stéphane Soumahoro, indicated that this forum aims to popularize this market with the business press to help journalists produce content in order to sensitize both companies and populations to invest in stock market stocks. The stock exchange school trains and supports people wishing to invest in Brvm.