By Eratus Ndueh
The Central African Stock Exchange (BVMAC) plans on splitting its shares to make financial market participation more accessible to low-income earners in the Central African sub-region. The pronouncement was made by the director general of BVMAC, Louis Banga Ntolo, during the 10th edition of ‘Ring the Bell for Gender Equality,’ an event led by UN Women to promote gender equality and women’s empowerment.
According to the Director General, this reform is mentioned in their plan of action for the year 2022-2026 and it aimed at facilitating the financial inclusion of low-income earners especially for marginalized groups such as women, youths, and operators in the informal sector without them necessary needing a bank account before they trade in the stock exchange market.
To ensure the success of this project, BVMAC plans on working with fintech companies operating in the field of mobile money, a payment method approved by the Bank of Central African States (BEAC), which identifies individuals through a microchip.
‘We will conduct splits similar to those in other stock exchanges, allowing shares listed on the BVMAC to be priced at CFA 500 without altering the rights associated with a security. Thereby facilitating the purchase of assets with an electronic wallet,’ the director general explained.
This ongoing reform at BVMAC will also have a positive impact on Cameroonians as it will increase the rate at which they invest in the stock exchange market.
‘This measure is going to ensure that more people get interested in investing in the stock market. Instead of sending the money to a ‘njangi’ ( common meeting group) each month, you can use the money to buy shares in the Central African Stock Exchange market, and then earn huge at the end of the year. This means that more people are going to be using the formal financial system to the benefit of local businesses who will be able to raise funds to expand their operations,’ Henri Kouam an economist expounded.
According to data from the Bank of Central African States (BEAC), the financial inclusion rate was 32% in the CEMAC zone in 2021. To increase this rate to 60% by 2027, the central bank is focusing on innovation and expanding digital financial services in the sub-region.
Source: Cameroon News Agency
