While global finance is still looking for stability after several crises in the last 10 years, the financial sector in Africa offers good prospects in terms of investment strategy.
Growth on the continent is continuing its good momentum and according to a recent revision of the growth prospects, published on October 12, 2017 in Abidjan, the African Development Bank (AfDB) believes that Africa’s economic prospects “have improved in 2017 compared to 2016 and should continue growing in 2018 »
In financial markets, both public and private, there are real opportunities for financial investment. In the West African region, for example, a real revolution has been taking place for years in the creation of financial structures that set the goal of supporting businesses, entrepreneurs and individuals and ensure better value on investments.
Both public and private financial companies operating within the West African Economic and Monetary Union offer financial investment choices that can prove profitable in the medium or long term, with better risk management.
Financial investment is becoming easier in the WAEMU zone in terms of involvement, with the digitalisation of services that allows the management of online transactions.
Financial analyst Alioune Sao says in an article published by financialafrik.com magazine that the stock market in the WAEMU region is presented as profitable.
“The average profitability of stock market assets in our market is around 9.4% per year while this rate is 5% on average for Term Deposits. Better still, the BRVM emerged iin 2015 at the top of African financial markets with a return of 17.7%, which makes our regional market a very attractive place, “he says.
However, which market to turn to for a better financial investment in the West African region?
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In public markets in the WAEMU zone, making financial investments in structures such as the Regional Stock Exchange (BRVM) or the Central Bank of West African States CBWAS – (BCEAO) offers considerable profitability, because of a good perception of the opportunities to seize in the sector of the stock market, real estate, loans, etc., for better investments and a reduction of risks. But the return on investment is generally in the long term, or the medium term in the best case-scenario.
In addition, the rise of private financial institutions in the WAEMU zone is an alternative for companies and individuals wishing to make financial investments.
Many regional banks also offer opportunities because they are at the heart of sub-regional economic dynamism. They are aware of good opportunities, understand the social and economic realities and support the majority of private investors in the regional economy. The private market is reactive to technological changes and invests a lot to facilitate access to offers and opportunities in several sectors: real estate, business creation, insurance, etc. In this sector, the positive effects of a financial investment can be expected even in the short term. In addition, the private market facilitates the monitoring of its investment and access to withdrawals (earnings, savings, etc.).