At meeting in Douala: Treasury Department unveils plans to increase investors in stock exchange market.

The move was unveiled to scores of economic operators, stakeholders of the Central African Stock Exchange Market, students and businessmen amongst others in Douala yesterday.

This was on the sideline of activities which summed up the presentation ceremony of the financial plan for 2023 fiscal year.

The Director General of the Treasury Department at MINFI, Moh Sylvester Tangongho, expounded on the importance to valorise and inform the general public on the role of financial market to state economy.

He said this will draw more public participation in public bond issuance.

He noted that most people holding public securities are limited, as such their mission in Douala was amongst other things, to ensure an increase in the number subscribers to treasury bonds.

"We had realise that even in our training schools, emphasis has not been laid on stock markets. Whereas, public markets are more secured and beneficial. It is where the state does not have delays of payment, it is more profitable," he said.

“We organised this workshop so that we can inform the public as much as possible. The public can participate in state bond issuance. Most people holding public securities are limited. At the Ministry of Finance, we want to increase the number of subscribers to Treasury bonds…," he added.

Taking the cue, the Liquidity Manager at MINFI, Tela Samuel, said in a population of 55 million, only about 500 persons are investors.

"This is insignificant," he said adding that “there are people who have money but don't know how to invest”.

“The markets help to raise funds that help finance projects that create employment,” he explained.

Tela said the state fiscal revenue alone isn’t enough to ensure the implementation all of the country’s social projects necessary for the wellbeing of its citizens.

He said this explains why the state will most times seek different streams to generate revenue.

In the year 2022, the State, he disclosed, generated 550 billion FCFA from the financial market. He said this year, the state envisages to raise 450 billion FCFA.

The money, it was said, shall be used to finance projects that have been earmarked on the finance law for 2023 in accordance with the strategic development plan.

"If we look at projects that came in line with the Strategic development plan, we noticed that we need to generate some 37,000 billion FCFA. Fiscal income for the state is not enough, the financial market is a place that can harvest more income. We need many investors to involve in public securities," Tela noted.

Pundits say, without stock markets, businesses would largely resort to borrowing huge loans which must be repaid with interests.

Fortunately, businesses in both the developed and developing world can issue shares to the public, raising vast amounts of cash that doesn’t come along with a repayment burden.