Cameroun Stock Exchange

The Douala Stock Exchange (DSX) is the Stock Exchange of Cameroon. The DSX is the sole agent licensed to trade in and to sell to the public, stock, shares, bonds and other investment products.

Based in Douala, the economic capital of Cameroon, port city and main point of entry to the CEMAC region, the Douala Stock Exchange is both the standard bearer of the national economic and financial community, and the result of the determination of the Cameroonian Government. The Douala Stock Exchange is a public limited company with a Board of Directors and capital of 1.8 billion francs cfa, of which 63.7% of the shares are held by private commercial banks, Credit Foncier of Cameroon and the Dutch bank FMO, 23% by public interests, and 13.3% by private insurance companies.

• Market Activities

Latest Trading session: 16/04/2014

Douala Stock Exchange ended its trading session on 16 April 2014.
The SEMC and SAFACAM SOCAPALM values ​​remained stable at CFA 129,998 to CFA 137,999 and CFA 42,998.
In terms of appearance, no transaction has been recorded.
Market capitalization stood at CFA F 134 674 660 474.
For the bond market "MOABI IFC 4.25% from 2009 to 2014", "ECMR 5.6% net 2010-2015", "BDEAC 5.5% net 2010-2017", "ECMR 5.9% net 2013-2018" and "State of Chad 6 % 2013-2018 "remained stable at 100.00%, 99.99%, 99.99%, 100.00% and 100.00% of accrued interest.
No title has been the subject of transactions.
The bond market capitalization stood at CFA 255 275 210 000.

Link: http://www.douala-stock-exchange.com/indiceref_fr.php

• Unlisted Companies – Introduction

What are negotiable government stocks and securities?

Negotiable government stocks and securities are loan notes or debt instruments held against, or guaranteed by, the State. Negotiable government stocks and securities are issued by the State of Cameroon.

• ‘Coupon zero' Treasury Bonds issued in favour of the States creditors. They are long-term securities over a period of 2 and 12 years which are remunerated at a capitalized interest rate of 3%, which is repaid along with the capital at the maturity date;

• Ordinary treasury bonds are defined as loan notes or debt instruments issued by the State to credit establishments and insurance companies: they have duration of 12 years and are repaid at a rate of interest which cannot be above the market rate. These interest payments are paid quarterly;

• Treasury Bonds, which are issued to economic agents.

The role of the Douala Stock Exchange in the negotiation of government stocks and securities

Douala Stock Exchange is responsible for the organization and monitoring of the secondary market in treasury bonds, which are quoted in the unlisted securities division. In this capacity, the DSX assures the prerogatives of the following:

• Organisation of the market: characterised by the centralisation of negotiation of these securities in their « Over The Counter » division.

The scope of these arrangements concerns every person wishing to carry out a negotiation of Zero Coupon Treasury Bonds at the Douala Stock Exchange, whether sale or purchase, both on his or her own account or on behalf of a third party (mandate permitting).

• The negotiation of transactions: The negotiating procedures used is a system known as A ‘Dutch auction'. Adjudications of zero coupon treasury bonds are carried out by means of a call for bids published in the official Bulletin of the DSX et displayed within its premises.

Each adjudication puts into competition all those who wish to purchase or sell bonds and who make an offer which conforms to laws and regulations in force. Potential buyers or sellers must confirm their transaction at the DOUALA STOCK EXCHANGE.

Each bidder whose offer is accepted will buy or sell the securities at the bid price (expressed as a nominal percentage of the face value of the securities) At the date of adjudication, the orders will be awarded at the price proposed by the adjudicators: the most attractive bids will be those whose price is highest, at nominal percentage value.

In the interests of transparency, the results of the adjudication will be published in the official Bulletin of the Douala Stock Exchange. The following information will be communicated: the quantity bought or sold the transfer price, and the names of the persons or organizations buying or selling.

The Douala Stock Exchange shall monitor all transactions carried out by authorized dealers, whether they be acting on their own account or on behalf of others.

Link: http://www.douala-stock-exchange.com/marchehorscote_us.php

• Reference Texts

Link: http://www.douala-stock-exchange.com/textes_us.php

Market Access

• Import regulations and customs duties

Regulations: There are three categories of imported products: the free products which do not incur any restriction, the products requiring a technical visa or a certificate of conformity from a competent Ministry (Health, Security....) and the products which are prohibited in the entire territory of Cameroon.

However, every import must be controlled before its loading. This control relates to quality, quantity and price...

Customs duties: A reform has been carried out in order to facilitate inter-zone export and import and to create a custom barrier which is harmonised for the entire UDEAC zone.

For that purpose,there is CET (Common External Tariff) which has established 5 rates (5%, 10%, 20% and 30% according to the nature of the goods but not depending on the origin of the goods),the GPT (General Preferential Tariff) which is related to the inter-zone export and import,a temporary additional tax (tax applied for a period of 3 to 6 years) which aims at protecting certain local sectors of the zone, excise tax (at the rate of 25%) and TCA (a tax on the business turnover, which is like VAT). However, special tax systems can also be applied (for instance : exemptions, lowering tax rate....)

• Distribution

- The Business to Consumer (B to C) market

- The Business to Business (B to B) market

• Transportation of goods

By road: The Road transport network extends over 50,000 km.

By rail: The railway transport network extends over a distance of 1,361 km of railway lines. There are two principal railway lines: Douala - Nkongsamba and Douala - Yaounde (245 km separating these two cities).

By sea: The Port of Douala is the main port of Cameroon (40 foreign stalls ensure the connection with other ports of the world).

By air: The three international airports are Douala, Yaounde and Garoua.

• Standards

The South African Bureau of Standards (SABS) is the institution responsible for developing the activities of standardisation and certification. It works in collaboration with international organisations such as ISO and IEC. It is strongly advised to contact SABS to ensure that the technical obligations required to market a product in South Africa are fulfilled.

• Patents and brands

Cameroon has signed an agreement at the time of the establishment of the World Organisation of Intellectual Property (WIPO)

Listed Companies on Stock Exchange

Market in Douala still does not have that much requests for quotations from companies operating in Cameroon. Indifference, doubt and drastic conditions of entry are the causes of this situation.

Banking policy, densification of the insurance market ... The Cameroonian Government in recent years has decided to work for a better financing of the economy. One of the ways required to achieve the emergence announced in hue and dia 2035. One of the ways of funding this economy is undoubtedly the existence of a thriving stock market. It is unfortunately still a target for the authorities in Yaounde.

However, by creating in 2006 the Douala Stock Exchange (DSX), they had in mind to boost the local financial sector. The State of Cameroon has certainly raised significant funds on the stock market (200 billion CFA francs), but the fact remains that the DSX soon reach cruising speed.

Since its inception, the DSX tramples with only one quoted value, the Society of Mineral Waters (SEMC), a subsidiary of French group Castel beer and a quotation per week. Six years later, the situation is not any better. Only three companies are listed. The SEMC with a public offering of 9,200 shares representing 20% of the total shares of the company. Then there is the forest and agricultural African Society (SAFACAM) which joined in 2008 with a public offering of 82,800 shares as representing 20% ​​of its total shares. The Cameroonian Society of palm (SOCAPALM) which joined in 2009 for a capital increase by public offering.

The harvest is insignificant in comparison of the Cameroon Economy. No less than four employers organizations, however jostle by making permanent hires. This year , the Minister of Labour and Social Security, Gregoire Owona, on a working visit to Douala, noted the increase in the portfolio companies members of the Inter -Management Group of Cameroon ( GICAM), the most representative employers the country.

Foreign Retailers

Obviously, one of the reasons to the insignificant number of companies listed on the DSX is an opportunity that does not lend itself. "When a company is still itself able to finance its expansion it generally does not enter into fellowship”, said Daniel Abaté , President of the Movement of Entrepreneurs Cameroon ( MECAM) , during a press conference Yaoundé.

This is what probably explains why the company Germano -Swiss law ACCANTUM , specialized in soft power reserves to go public in Cameroon , while it operates a large commercial offensive in Africa since the beginning of this year . Concerning most of international brands, with subsidiaries in Cameroon, Cameroonian economist Abissama Ako says: “Foreign companies operating in Cameroon do not find the need to go public here because they are already listed in U.S. and European markets.”

That is why a company like International Bank of Cameroon for savings and credit ( BICEC) , a subsidiary of French group BPCE , large size of the CAC 40 in France , despite its performance ( first bank in Cameroon ) , is not interested despite its 594 billion turnover . Quid agribusinesses companies, representative of the Cameroonian market, mostly subsidiaries of large foreign groups. What about the two mobile phone companies, Orange Cameroon and MTN Cameroon. Recent enthroned yet tops the charts in the Cameroonian market services. MTN- Cameroon shows a turnover of over 234 billion CFA francs. Orange- Cameroon it is credited 160 billion.

These heavy weights of the Cameroonian economy could densify the market capitalization of the DSX. Without this contribution, the capitalization of about 1.7 billion francs CFA is far 458 billion of the Johannesburg Stock Exchange (JSE), the first stock exchange in Africa. JSE initiates since few years, comparisons with other African exchanges with the possibility of a dual listing of companies. If business is slow to give satisfactory results, it remains a hope for African scholarships, DSX for example, to draw into his wallet of Western companies with subsidiaries in Africa, like in Cameroon for example.

Local Small and Medium Enterprises (SMEs)

regarding local businesses, the causes of reluctance to go public are different. Low growing of financial market is one of the causes as defined by the experts in the field. “Cameroonian companies generally operate on family-type buildings with the result, financial statements far from reliable. And these companies are usually afraid to go public, "says economist Abissama Ako.

Many of them think that the motivations of the authorities were not healthy in creating the DSX. More than one scholarship cannot survive in the sub - region of Central Africa, Libreville scholarship is prior to the creation of the DSX.

Obviously, to emphasize its status as an economic leader in the sub-region, Cameroon held to create his own scholarship, even if they had to dilute its efficiency. Yaoundé is now ready to work for reconciliation with Libreville.

However it remains, that the conditions join the scholarship are often drastic for local businesses. For example, to be eligible for the first market, we present a market capitalization at the introduction of 500 million CFA francs and above all, should be a limited company and in that case it eliminates SMEs.