Cameroon: Reporters and Bankers Explore Financial Markets

The poor reporting of financial news in the country’s media organs, including newspapers, radio and television, web blogs and web sites, further creates confusion in the minds of Investors. The market has quickly slipped into a vicious cycle of inadequate performance, misunderstanding by key actors, and poor or malignant news coverage.

In order to trigger a reversal of the trend, a two-day workshop (Thursday 03 and Friday 04 February 2011) was organized at the GICAM headquarters in Douala, attended bankers and other financial experts, as well as journalists whose editors presented as reporters of financial news. To the members of the Financial Markets Commission of Cameroon, it is imperative for all the stake holders to understand that both primary and secondary financial markets are functional in Cameroon, such markets may still be considered to be in the embryonic stage, but there is a great potential for growth given that at all levels, they are well-structured and highly regulated.

Resource persons, included Professor Kamdem David, Dean of the Faculty Economics and Management of the University of Dschang; Mr. Sanda Oumarou, an Economist and Cameroon’s former Minister of Post and Telecommunications; Mr. Elung Paul Che, former General Manager of the Cameroon Treasury; Madam Adiaba Jacqueline, Director of Markets at the Douala Stock Exchange DSX; Mr. Emeke Iweriebor, General Manager of the United Bank for Africa UBA: Dr Banga Ntolo Louis, Assistant GM of Société Générale de Banques au Cameroun SGBC; and Mr. Mathieu Mandeng, General Manager of Standard Chartered Bank; among other professionals from the world of Banking and Finance.

In the twinkle of an eye, the participants were bombarded with tonnes of information on financial markets, definitions, structures, instruments, actors, and operations. The notion of investment banking within a context dominated by commercial banks was highlighted, and participants particularly the journalists could now understand why the Cameroon government has to issue bonds and borrow money from the public even when the banks are suffocating under what has been termed “excess liquidity”. The simple truth is that short-term funds cannot be used to finance long-term investments.

Besides the primary markets dominated by investment bankers, the participants also understood that structures like the Douala Stock Exchange DSX operate mainly in the secondary markets where they create a continuous market for the exchange of bonds and stocks, as well as determine securities prices through the buying and selling of orders. The co-habitation of two stock exchange markets within the CEMAC Sub Region in Douala and Libreville remained an intriguing issue. The difference between a stock exchange and the financial markets was succinctly established with the Financial Markets Commission of Cameroon described as a “gendarme” given its regulatory role while two other key players in Cameroon’s financial markets are the “Caisse Autonome d’Amortissement” and the “Banque de Réglement” which is the SGBC bank.

At the end of the training, participants went away with the understanding that for a country like Cameroon to become an emergent economy by 2035 the financial markets must play a key role in mobilizing funds and financing long-term investments. News reporters versed with financial issues equally have to generate more output in terms of packaging information in such a way that investors can rely on media publications for financial news. More reporters have to be trained and many more bankers and financial experts have to be seen communicating and commenting on issues relevant to the general public.