BRVM to open the financial market to SMEs

Jun 15, 2012
The West African Economic and Monetary Union's stock market (BRVM) presented on June 4th in Ouagadougou its project for opening the financial market to small and medium-sized enterprises (SMEs) within the union.

This scheme was created because SMEs often do not have access to the regional financial market, even though it can constitute an efficient tool to access finance.

Jean-Jacques Lecat, member of consulting firm CMS Bureau Francis Lefebvre, which assists the BRVM in this project, told Ecofin news agency that the current BRVM entry requirements do not allow SMEs to leverage funds mainly because the capitalisation required is too high for this type of company.

"This new market would be opened to companies as soon as they are constituted under an SA (public limited liability company) but without any other requirement related to the capital or the net margin" he added.

Depending on the project, these companies could sell shares with a value of CFAF 50 billion (€76.2 million) to no more than 100 subscribers without any requirement related to a minimum percentage of the capital.

They will also not have to follow the public appeal process or obtain a visa from the regulation and supervision authority, Le Pays reports.ADNFCR-2976-ID-801385370-ADNFCR