West African financial markets have existed for several decades, but their role in financing the economy remains modest. Despite the progress made by the BRVM (Regional Stock Exchange), few companies raise capital on the stock market, and trading volumes remain low. This situation reduces the markets' capacity to finance private investments and leaves banks on the front line.

The BRVM, based in Abidjan, has just under 50 listed companies for all the WAEMU countries. This figure remains low considering the size of the regional economy and the number of active businesses. By comparison, Morocco's stock exchange alone has more than 75 listed companies, while South Africa's has several hundred.

The regional market suffers primarily from a lack of liquidity. Few investors regularly buy and sell securities, which limits daily trading. Many shares remain held long-term by institutional investors, founding families, or strategic groups unwilling to relinquish their stakes. As a result, some stocks are traded very little, and it can be difficult to buy or sell shares quickly without significantly impacting their price.

This shallow market is also explained by the structure of the regional economy. A large proportion of businesses are small, informal, or family-owned. Many hesitate to go public due to accounting requirements, financial reporting obligations, or the partial loss of control that opening up capital entails. For many business leaders, bank financing seems simpler and more familiar, even when it is expensive.

States also hold a dominant position in regional markets. Government bond issuance has been increasing for several years to finance budget deficits. Banks, insurance companies, and pension funds often prefer to buy these sovereign bonds, considered safer and more profitable in the short term, rather than financing private companies. This preference further reduces the resources available to companies wishing to raise capital on the market.

The lack of a broad base of individual investors is another obstacle. In many countries, few households invest directly in the stock market. Financial markets are often still perceived as reserved for a minority of insiders or large institutional investors. This limited stock market awareness restricts trading volumes and prevents the emergence of a more dynamic market.

The paradox is that the financing needs are immense. Businesses are seeking capital to invest, governments are undertaking numerous infrastructure projects, and banks cannot absorb all of this demand on their own. A more active financial market would diversify funding sources, reduce dependence on external lenders, and better mobilize local savings.

The rise of new market segments dedicated to SMEs, the gradual arrival of fintechs specializing in investment, and improved public awareness could change the situation. However, as long as the number of listed companies remains low and investors favor the safest investments, regional financial markets will continue to play a secondary role in financing the economy.