Alex, a 35-year-old Cameroonian, has managed to save 5 million FCFA after several years of work. He wants to invest this sum wisely. Like many Africans, he hesitates between several investment options, each with its advantages and disadvantages.
Real estate investment, particularly the purchase of land, remains a safe haven for many Cameroonians. Land offers a sense of security and tangibility, with a value that can increase by 5 to 10% per year in some urban areas. However, this type of investment is not very liquid, as selling can take several months.
Tontines, collective savings systems based on trust and social proximity, represent another popular option. They finance businesses, housing, or other economic activities, with informal returns that can exceed 10 to 15%. However, their success depends on mutual trust between participants.
Term deposits and government bonds offer relative financial security. Term deposits generally yield between 3 and 5% per year, while CEMAC government bonds can offer returns of 6 to 9% or more, depending on maturity. This risk/return balance particularly attracts banks and institutional investors.
Despite these various options, the Central African Securities Exchange (BVMAC) is struggling to attract Cameroonian savers. Several factors explain this situation, including a lack of information and confidence in the stock market, as well as a preference for more traditional and better-understood investments. In 2023, more than 1,500 billion FCFA were wagered on sports betting in Africa, revealing a propensity to take risks for potentially high gains, a behavior that could be channeled into more productive investments if the BVMAC managed to gain the trust of savers.
To boost the CEMAC financial market, the BVMAC plans to implement a technological migration platform, including stock splitting, to attract small savers. The regional stock exchange aims to digitize its processes by moving from a fixed quotation model to a continuous system, with online trading platforms and transactions via mobile money.
Cameroon is considering returning to the BVMAC market in 2026 with a public bond issue of between 100 and 150 billion FCFA, subject to market conditions. If carried out, this operation would be Cameroon's eighth public offering on the BVMAC.
