Based in Abidjan and shared by the eight member countries of the West African Economic and Monetary Union (UEMOA), the regional stock exchange has established itself over nearly three decades as a central instrument for market-based financing in West Africa. At the end of 2024, its market capitalization exceeded 9 trillion CFA francs for equities, with some forty listed companies, primarily from Côte d'Ivoire, Senegal, and Burkina Faso. In addition, there is a particularly dynamic bond market, fueled by sovereign bond issues and those of large corporations.

On paper, the BRVM (Regional Stock Exchange) represents an alternative to bank loans. It allows companies to raise equity capital, extend the maturity of their financing, and diversify their investor base. For companies in a growth phase, an initial public offering (IPO) can increase visibility, improve governance, and facilitate access to other sources of funding.

However, small and medium-sized Senegalese enterprises remain very poorly represented. The official index primarily includes large companies, often subsidiaries of international groups or already well-established businesses. SMEs, which constitute the bulk of the national productive fabric, remain excluded from this tool, which was designed to support regional investment.

Several factors explain this situation. Financial reporting and governance requirements act as an initial filter. The regular publication of audited financial statements, the implementation of internal control bodies, and compliance with harmonized accounting standards entail significant fixed costs. For a small or medium-sized enterprise, these expenses may seem disproportionate to the expected returns.

The issue of critical mass also plays a crucial role. Institutional investors dominate the regional market and favor issuers capable of offering sufficient liquidity and clear return prospects. However, many Senegalese SMEs have limited revenues, are dependent on a few clients, or are highly exposed to sector-specific risks, which reduces their perceived attractiveness.

In addition, financial literacy remains unevenly distributed. Opening up capital to outside investors implies accepting dilution and transforming management practices. In an environment where family businesses are numerous, this evolution can generate resistance. Access to bank loans, even if more expensive in the short term, often appears simpler and more familiar.

The very structure of the regional market contributes to this configuration. The segment dedicated to SMEs, launched to broaden the issuer base, remains under-developed. Trading volume remains concentrated on a few leading stocks, which limits the depth and liquidity of the secondary market for smaller securities.

This low participation of SMEs has macroeconomic consequences. It reduces the role of the financial market in structural transformation and maintains a strong dependence on bank financing. In a context where banks hold a significant portion of their assets in government bonds, their capacity to stimulate the productive sector may be limited.

Strengthening the presence of SMEs on the BRVM requires a phased approach. Accounting upgrade programs, temporary tax incentives, and shared guarantee mechanisms could lower the cost of entry. Expanding the local investor base, particularly through pension funds and insurance companies, would also help boost demand for shares of mid-sized companies.

However, listing should not be idealized. Exposure to market fluctuations, price volatility, and the risk of initial undervaluation can weaken young companies. A poorly planned IPO, in a context of low liquidity, can also permanently damage an issuer's reputation. The stock market is a demanding tool that requires financial maturity, a clear strategy, and sound governance. For some SMEs, an intermediate phase of internal strengthening or private financing may be more appropriate before considering access to the regional market.