Côte d'Ivoire - West Africa
West African stock markets handle Ivorian crisis

afrol News, 12 February - In contrary to pessimistic predictions, the crisis in Côte d'Ivoire has not had the same negative effect on West African stock exchanges as on other sectors in neighbouring countries. Stock-exchange rates have remained remarkably stable. 

Since the conflict in Côte d'Ivoire started developing in September last year, there have not been any significant changes in rates at the stock exchanges of the region. Several national stock exchanges in West Africa even noted significant growth during all 2002. 

According to the latest available regional analysis of stock-exchange rates, the volumes of West African stock exchanges have noted a small increase last year, compared to 2001. The total volume increased from franc CFA 15 billion in end-2001 to franc CFA 16.5 billion at year's end in 2002. 

This relatively good result and the apparent resistance against a negative influence from the crisis in the region's leading economy, Côte d'Ivoire, however does not mean that the regional finance market has re-established its strength after the crack in 2000-01. The total volume is still far behind the record year of 1999, when it reached franc CFA 57.3 billion. 

Also the individual sectors have remained remarkably stable during last year. Even the cocoa industry - Côte d'Ivoire is the world's leading cocoa producer and exporter - has not noted significant changes. The diminished production in Côte d'Ivoire is partly checked by record world market cocoa prices and the fact that neighbour countries, such as Ghana, have been able to maintain a high production. 

The banking sector is however in the process of noting the negative influences of the Ivorian crisis in these first months of 2003. The most important regional banks fear significant tapping of their capital assets as small and medium sized businesses are said to become the big losers after the violence in Côte d'Ivoire. This is expected to have a regional effect, again affecting banking in West Africa.

Also the evacuation of the African Development Bank (ADB) from its Abidjan headquarters is seen to have negative consequences on the regional capital market. While the ADB is said to follow up on financing already agreed to, the reduced staff has not been able to engage in new financing for some months. ADB is Africa's leading financial institution.

 

Sources: Based on press reports and  afrol archives