The West African regional securities market is switching to T+2 settlement (second day after trading) with effect from the trading session this Friday, 4 December. The move has been prepared by the Dépositaire Central / Banque de Règlement (DC/BR, central depository and settlement bank) and will take effect from Friday’s trading on the Bourse Régionale des Valeurs Mobilières (BRVM).

The BRVM and the DC/BR are financial institutions at the heart of the capital markets of the West Africa Monetary Union (WAMU, or l’Union Monétaire Ouest-Africaine – UMOA), which draws together eight countries with a shared currency (CFA franc or XOF) and a single central bank Banque Centrale des États de l’Afrique de l’Ouest (BCEAO) and one capital markets regulator l’Autorité des Marchés Financiers de l’Union Monétaire Ouest Africaine (AMF-UMOA), which has approved the change to T+2 . The DC/BR is based in Abidjan. The eight countries are: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

The current settlement is on T+3. Reducing the settlement period to the brings the market into line with international standard. The Nigerian Exchange moved to T+2 last Friday, 28 November (see our story).

The change is highlighted in Notice No 240-2025 from the Director General of the DC/BR, and with Instruction No 1 of 2025, both issued on 26 November .

The move was announced by Birahim Diouf, Director General of the DC/BR, on 25 June. He said: “This reform aims to improve operational efficiency, increase liquidity, and reduce counterparty risk.. For investors, both local and international, this translates into savings, higher returns, and greater security. It strengthens our attractiveness and positions our market according to international standards.” (Google translate). He added that the move was in close consultation with all stakeholders who participated in a working group.

According to the press release, when the regional market was launched in 1998, the settlement cycle was set at T+7, as there was no electronic payment system to connect the regional banks. The BCEAO introduced the Real-Time Gross Settlement System (RTGS) in 2007 and this allowed an initial reduction to T+3. “Today, the move to T+2 represents a further step towards integration with best practices in international markets, some of which are already experimenting with T+1.”

Mr Diouf also highlighted two other projects in progress for the regional market:

• Accounts will be registered in the name of the clients to ensure owners of securities held on the books of the DC/BR are individually identified, in accordance with international best practice.
• The Digitalization of Public Offering Operations (DIGIAPE) which will modernize and automate the subscription process on the primary market including for initial public offerings (IPOs) and other capital raising. This platform is financed by the African Development Bank (AfDB) and will strengthen transparency, accessibility and regulators’ oversight of operations.

The DC/BR board approved the change on 21 October which also approved steps for handling late settlement.
Ecofin agency reported in June that the ultimate aim is to move to T+0 or real-time settlement but this will take years of work and reforms with all parts of the infrastructure, including the banking system. It said “In the United States, the switch to T+1 became official on 28 May 2024. The European Union and the United Kingdom are working toward the same target by 2027. India is even ahead of the curve—some of its trades already settle on a T+0 basis.

“But all that depends on heavy technical upgrades, regulatory adjustments, and more training for market operators. ‘You cannot trade speed for safety,’ said a market professional based in Abidjan.”

A report on Daba Finance says “The move to T+2 will require faster trade confirmation and settlement checks from brokers, banks and custodians. The DC/BR has introduced a framework to manage late settlements under the accelerated cycle.” It says it will help the BRVM attract more institutional investors, particularly international.

“Across Africa, the shift places the BRVM among the more advanced post-trade infrastructures. South Africa’s JSE already operates at T+3 for equities but is reviewing its own timetable for reduction. Nairobi and Cairo are preparing similar reforms. As cross-border fund flows rise through vehicles such as regional ETFs and pan-African mandates, harmonised settlement cycles reduce friction and lower operational costs. The BRVM’s upgrade comes as trading activity and market capitalisation continue to expand in the UEMOA region, adding weight to the timing of the transition.”