THE CEMAC FINANCIAL MARKET: CHALLENGES AND LEGAL PERSPECTIVES

Abstract

The Central African region has not been too active in stock exchange developments as compared to their counter parts in West Africa. The CEMAC Zone had two Stock Exchanges that co-existed and later on resulted to legal insecurity with overlapping regulations. The regional market as existed in Libreville Gabon and defined by ACT No. 03/01- EMAC-CE 03 of 8 December 2001; and the Douala Stock exchange market in Cameroon created via the provisions of Law No. 99/015/of 22nd December, 1999.1Both Laws are complemented by the rules and regulation of the OHADA Treaty, precisely the Uniform Act on Commercial Companies and Economic Interest Groups. Despite their existence, a number of factors have contributed drastically to their very poor performances in the world scene among others; regulatory inconsistency, inadequate dissemination of information, limited number of listings, the problem of limited capital, corruption, the issue of privatization and restriction, insider trading, lack of confidence and the problem of consignee. To revamp this sector, a merger proposal was imperative. The outcome was the signing and adoption of Regulation No. 06/17/CEMAC-CONSUMAF-CCE-SE on the unification of the CEMAC financial markets. The latter indicated that for better performance the regional stock exchange for CEMAC would henceforth be the Douala Stock Exchange and the Regulatory organ of the exchange will be located in Gabon. Thus, Factors such as harmonised regulations, sound macroeconomic environment, welldeveloped banking sector, transparent and accountable institutions, and shareholder protection, are considered as preconditions for the effective development and functioning of a financial market in general and the CEMAC market in particular. The above measures, if well implemented, will curb the challenges and improve economic growth throughout the Sub Region.