“In a context of transformation of African financial markets, the Central Depository/Clearing Bank (DC/BR) of the West African Economic and Monetary Union (WAEMU) asserts itself as a pillar of stability and innovation. Between digitalization of subscriptions, reform of settlement deadlines, and regional cooperation, the institution is deeply modernizing the mechanisms for processing and securing financial transactions. Its Director General, Birahim Diouf, presents the major ongoing developments and the strategic vision of the DC/BR to enhance the attractiveness of the regional market.
The DC/BR occupies a central position in the WAEMU regional financial market ecosystem. As a systemic market infrastructure, it provides essential community public service missions for the proper functioning and stability of the regional stock market. Its main role is to ensure the security, transparency, and efficiency of post-market operations. Concretely, it codes securities according to the international ISO-6166 standard, centralizes the custody of dematerialized securities, and allows their registration in accounts, facilitating their circulation while reducing operational and fraud risks. The DC/BR is also responsible for the settlement/delivery of stock market transactions and securities operations, ensuring the smooth payment of dividends of listed companies, capital reimbursements, and interest payments on bonds. In this capacity, it plays a key role in maintaining trust among market participants. Additionally, it administers the Market Guarantee Fund, which acts as a safety net to cover potential settlement defaults. Through all these functions, the DC/BR actively contributes to the solidity, integration, and modernization of the regional financial market, in alignment with international best practices.
Recent developments at the DC/BR reflect a positive dynamic that reflects both the vitality of the regional financial market and the operational efficiency of the infrastructure. The year 2024 was characterized by a significant increase in key activity indicators, reflecting the growing confidence of market participants and the strengthening role of the DC/BR in the ecosystem.
As of December 31, 2024, the total amount distributed for dividends and interest reached 2,332 billion FCFA, compared to 1,929 billion the previous year, representing a significant growth of 20.94%. This evolution reflects an improvement in the performance of issuers, as well as the ability of the DC/BR to ensure efficient and secure processing of securities-related payments. The value of securities held within the DC/BR also experienced sustained growth.
It stood at 21,768 billion FCFA at the end of 2024, compared to 19,140 billion in 2023, representing an increase of 13.73%. This growth confirms the expansion of the issuance base and the increasing attractiveness of financial instruments issued on the regional market. Regarding the value of settled transactions, it amounted to 942 billion FCFA in 2024, compared to 800 billion in 2023, an increase of 17.82%. This upward trend illustrates market dynamics and the growth in volumes traded on the DC/BR platform.
The dynamism of our ecosystem is evident through the evolution of statistics related to members. Indeed, the number of equity issuers increased from 47 to 48 between 2023 and 2024. On the side of bond issuers, a contraction was observed, with their number decreasing from 45 to 41. However, Asset Management and Intermediation Companies increased from 35 to 36, while Account-Holding Banks and Custodians increased from 10 to 12, reflecting a growing interest in custody and account holding activities. These results confirm the growth of activity in the regional financial market, while highlighting the strength of the DC/BR’s operational model and the impact of the launch of new value-added services by the institution in the coming months.
A few months ago, you signed a grant agreement with the African Development Bank for a project to digitalize subscription operations in the regional financial market. Can you tell us about this project?
This partnership with the African Development Bank (AfDB), through the Capital Markets Development Trust Fund (CMDTF), is of strategic importance for the DC/BR. We would like to express our deep appreciation to this institution for its crucial support in implementing this structuring project, which fully aligns with our digital transformation policy.
The project, named DIGIAPE, aims to digitize all operational processes related to subscription operations in the primary market. It is based on the deployment of an automated platform, developed and hosted by the DC/BR, aimed at modernizing access to subscription operations for Public Calls for Savings (APE) in the primary market. This solution will allow investors to participate in subscription operations in a simple, fast, and secure manner, while facilitating the registration of securities in the DC/BR’s registers.
Today, we can affirm that the project is in an advanced stage. The development of the platform is nearly completed, and we are currently in an internal testing phase to make the final technical adjustments. In addition, a training program for market participants is being deployed before the official launch of the platform scheduled for the year 2025.
Beyond process modernization, DIGIAPE aims for financial inclusion. By expanding access to APE in the primary market to new profiles of investors, including those from the diaspora or located in geographically remote areas, this platform will help broaden the base of investors in the market. It also aims to increase the number of securities accounts – currently around 300,000 in the region – and to promote more active and diversified participation in the activities of the WAEMU regional financial market.
Liquidity is crucial and partly depends on the settlement and delivery times of stock market transactions. Can you tell us about the reforms undertaken in this area and how the DC/BR of the WAEMU compares to its African and international counterparts?
The issue of liquidity is indeed at the heart of concerns related to the performance and attractiveness of financial markets. To improve this essential aspect, the DC/BR, within the framework of the public service concession granted to it, has initiated a major reform to reduce the settlement/delivery cycle of stock market transactions. Currently set at T+3 – three business days after the trade date – this deadline was initially T+5 at the launch of the regional market in 1998. The ongoing project aims to bring this cycle down to T+2, in line with international standards now adopted by the majority of developed and emerging financial markets. This reform serves several strategic objectives: reducing counterparty and market risks, strengthening operational efficiency, improving liquidity, and positioning the WAEMU regional market competitively. By reducing the time between the transaction and settlement, investors will be able to reuse their capital more quickly, facilitating a smoother portfolio turnover and stimulating trading volumes. Furthermore, aligning the regional market with international best practices will enhance its attractiveness to institutional investors, including those operating across borders.
In addition to market dynamics, this evolution will increase stakeholders’ confidence through greater operational security, reduced systemic risks, and increased market stability. It also aims to optimize financial processes by reducing delays, errors, and promoting the emergence of innovative services related to automation and digitalization of flows. The effective implementation of the T+2 settlement cycle is planned for the current year, in accordance with the guidelines of the Financial Markets Authority of the WAEMU (AMF-WAEMU), with coordinated work between central structures and market professional associations.
Now, regarding the comparison of the DC/BR with its African and international counterparts, it should be noted that the DC/BR presents a unique institutional model worldwide. It is the only central depository with a regional competence covering eight sovereign states – Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo – gathered within the WAEMU. This multinational membership is a major structural singularity. In addition to this, within the Union, there is a common Central Bank, the BCEAO, which facilitates settlements and coordination of monetary policies, as well as the existence of a common currency, the CFA franc, pegged to the euro and used by all member states, which is an asset for attracting international investors. This integrated institutional framework is a significant comparative advantage, facilitating stock market transactions in the region while strengthening trust among stakeholders and investors.
What is the state of cooperation between the DC/BR and other West African depositories and African depositories in general in view of the integration of African Exchanges?
Regional and continental cooperation contributes to strengthening the international positioning and improving the visibility of the DC/BR, a major strategic axis for the DC/BR, which maintains close and constructive relationships with several depositories in West Africa and other regions of the continent. These exchanges are part of a dynamic of integrating African markets, with the common goal of enhancing interconnection, efficiency, and competitiveness of financial infrastructures.
Institutionally, the DC/BR is actively involved in several professional networks and international organizations. It is a full member of the Association of National Numbering Agencies (ANNA), the Africa and Middle East Central Depositories Association (AMEDA), the African Securities Exchanges Association (ASEA), and the International Securities Services Association (ISSA). This presence in international collaboration platforms allows the DC/BR to share best practices, stay informed about global trends, and participate in discussions on the future of post-trade markets.
In terms of bilateral cooperation, the DC/BR has signed several agreements with strategic depositories. A cooperation agreement links the DC/BR to Maroclear, the central depository of Morocco. Memorandums of understanding have also been concluded with the central depositories of Ghana and Nigeria, encouraging the exchange of expertise, strengthening technical coordination, and laying the groundwork for future interconnection. More recently, on October 3, 2024, a memorandum of understanding was signed with the Qatar Central Securities Depository (EDAA), focusing on sharing experience and transferring skills in areas related to securities management.
These cooperation initiatives are part of the DC/BR’s 2021-2025 Business Plan, named Aya, with the vision of positioning the institution as a world-class market infrastructure, in line with international standards for securities management and transaction settlement. Furthermore, the DC/BR plays an active role in the integration project of the capital markets of the Economic Community of West African States (ECOWAS), a flagship program aiming to connect the main exchanges in the region. This project, led by the Economic Community of West African States, aims to unify the trading platforms of five exchanges: the BRVM for the WAEMU, the Ghana Stock Exchange, the Nigerian Exchange Group, the Sierra Leone Stock Exchange, and the Cape Verde Stock Exchange.
In this perspective, the exchanges and depositories involved have set up a common governance body, the West African Capital Markets Integration Council (WACMIC), responsible for overseeing the technical and institutional work of this integration. Significant steps have already been taken, and the DC/BR remains fully committed to contributing to the success of this ambitious project, which will enhance the attractiveness of West African markets and facilitate capital mobilization at the regional level.
One of the flagship projects of the DC/BR is the accession to the SWIFT network. What are the benefits of joining the SWIFT platform for participants in the regional financial market?
The DC/BR’s accession to the SWIFT network aims to enhance the connectivity of the WAEMU market with other international financial centers, offering our members direct access to a secure, standardized, and globally recognized communication infrastructure. This integration will streamline the exchange of financial data and payment messages, while improving the speed, reliability, and security of post-trade operations. For DC/BR members, using the SWIFT network will enhance their operational efficiency and facilitate interactions with foreign counterparts, in line with international best practices.
Furthermore, adopting SWIFT is a decisive step towards aligning our market with global standards. It also paves the way for new high-value-added services in cross-border settlement, cash flow management, and automated reporting. By offering this level of technological requirement and security, the DC/BR contributes to establishing the credibility of the regional financial market and strengthening the trust of investors, whether national or international.
Could you tell us about your plans to offer new services to the regional financial market ecosystem?
The DC/BR continues its strategy of diversification and enhancement of its services to meet the requirements of an ever-evolving market and strengthen the attractiveness of the regional financial center. Several structuring projects are currently under development, each addressing specific issues of transparency, security, operational efficiency, or regulatory modernization.
One of the most advanced projects is the registration of securities at the end-client level. At the market’s inception, the decision was made to organize securities custody in so-called ‘omnibus’ accounts, where clients’ securities were grouped without individual identification in the DC/BR’s books. While suitable for an initial phase, this mode of operation does not formally identify the final holders of securities today, limiting control, risk management, and compliance capabilities.
Transitioning to end-client level registration will enhance transparency, comply with international standards in combating money laundering and terrorism financing, and pave the way for new innovations. This model is already in place in several African markets, including Ghana, Nigeria, and Mauritius, and is now a strong expectation of regulators and investors. In this continuous improvement dynamic, another top priority project is securities lending and borrowing, designed as a lever to deepen market liquidity and prevent settlement default risks in the transition to a T+2 settlement/delivery cycle. This mechanism will allow account holders to quickly mobilize available securities to honor their commitments, while offering security holders additional income by temporarily providing their assets.
It will help streamline the secondary market’s operation and increase its attractiveness, especially to international investors. We are also conducting an in-depth reflection on the establishment of a Central Counterparty Clearing House (CCP). This structure will be involved in post-trade operations, positioning itself between buyers and sellers to guarantee transaction execution and mutualize risks. Implementing a CCP would reach a new level in risk management and alignment with the most advanced practices of international financial markets.
Another promising project is the registration of securities of unlisted companies in the DC/BR’s registers. This service is part of a modernization approach for the treatment of unlisted securities, aiming to secure ownership instruments for shareholders and facilitate access to financing for the companies concerned. Dematerializing securities, by eliminating the risks of loss, theft, or falsification, enhances legal and operational security.
It also helps limit fraud, ensure the legal recognition of shareholders’ rights, and strengthen overall market confidence. This registration is a regulatory obligation stemming from OHADA provisions, and many companies have already expressed interest in relying on the DC/BR to ensure the custody of their securities in a secure and standardized framework. Through these various projects, the DC/BR reaffirms its ambition to be not only a reliable technical operator but also an innovation catalyst and a trusted partner in the development of the regional financial market.”
