Passing arms between Sheikh Ba (CDC) and Asan Soumare (CSS)

The third edition of the BRVM Awards will take place in Dakar this Thursday, June 9, 2022. In preparation for this evening’s gala, organized by the Regional Exchange (BRVM) to reward “excellence” in the regional financial market (MFR), a high-level panel was held on Thursday.

Prior to the award ceremony, reflection activities were held on June 8 and 9 on the main topic: technological development and market integration. On Thursday, one of the sessions covered: “Public or Private Institutional Investing: Accelerating Growth and Factoring the Dynamism of Stock Exchanges in Africa”.

To discuss this topic, 5 representatives from public and private institutions formed the committee, which was moderated by Edoh Kossi Amenounve, CEO of BRVM. The General Manager of Caisse des Dépôts et Consignations du Benin contributed to the discussions from a video, highlighting the good results of its structure, which was created 4 years ago (in 2018) by citing a total balance sheet of more than 800 billion CFA francs.

Speaking afterwards, his Senegalese counterpart, Sheikh Ahmed Tidiane Ba, first confirmed the measures taken by the institution made up of several investments in local companies. Regarding the overall budget of the Center for Disease Control and Prevention in Senegal, CAT Ba disclosed that it is 245 billion CFA francs with equity of 30 billion.

According to him, these figures, which are much lower than the figures of Benin, are explained by the reluctance of some Senegalese organizations to contribute. “The problem is the collection. It is true that we have put a lot of effort into digitizing the notaries platform,” explains the CEO of the CDC in Senegal. Before adding: “These are our main donors. But, in Senegal, we are still hesitant regarding the provision of resources by notaries, the Social Security Fund, and IPRES.”

These resources are the foundation’s main funding points. “Unfortunately, we have enormous difficulties in regaining possession of these resources. That is why we are still lagging behind despite the fact that we are the oldest in Africa. I believe that if the state helps us, we will be able to do more,” urges Sheikh Ahmed Tidian Ba.

“The CDC was supposed to pay us money,” Asan Somare, director general of CSS Services

Influenced by these words confirmed by the Director-General of the Center for Disease Control and Prevention in Côte d’Ivoire, who believes that he is facing the same difficulties, the Director-General of the Social Security Fund in Senegal, Assan Soumare, gave the response. “You have resources in terms of deposit and freight. In the end, you have life resources,” he says at the outset, specifying that, on the contrary, social insurance institutions have “insurance” resources. “Social welfare institutions provide social insurance and may be responsible for compensation,” says Asan Sumari. According to the Directorate General, Senegal’s social security contributions are among the lowest in the world

In Senegal, social security contributions are very low, even among the lowest in the world. But we have a very generous compensation plan.

In Senegal, the maximum is 63 thousand CFA francs. This means that if you take the average worker and the person earning 5 million, they all contribute 6,300 CFA francs. If you are completely incapacitated, you are covered for life. In other countries, there is no cap. This means that if you win 5 million, then 10% will be applied to you and 500,000 will be withdrawn from you. In Senegal, you earn 63,000 CFA francs, you pay 6300; You earn 10,000,000, we take 6300 from you and fix you 100%,” Asan Sumari regrets.

The Director General of the Social Security Department estimates that because of this amount of disbursement, the social security institutions are “in the process of providing implicit ‘companies’ subsidies.” “So, if we have to activate the inter-institutional dynamic, it is the CDE that should pay us. Because CSS basically performs its own public service function.”

“We know judging isn’t always easy…”

Following these exchanges, BRVM General Manager Edoh Kossi Amenounve gave the final word by summarizing the discussions. “The Director-General of the CDC has reiterated it many times, it is a public entity that must act in the public interest. At the same time, it must have a certain profitability because they have been assigned funds to manage it. Our call is to bring you closer to market brokers so that they can of studying your model and presenting the right solutions to you”, believes the General Manager of BRVM. Moreover, the head of the sub-regional financial institution is campaigning for the reform of market rules in favor of these institutions in order to break the glass ceiling that hinders their progress.

Leave a Comment