Ewatch Africa Investment Analytica, a subsidiary of HPS Consulting of Prosper Sugewe, intends to rate in local currencies the communities and companies of Central Africa.
While the debt levels of certain African countries and certain large companies are running much ink, financial Africa is getting organized. Ewatch Africa Investment Analytica SA is awaiting approval from Cosumaf, the Central African Financial Market Supervisory Commission. As soon as the precious sesame is obtained, the first credit rating agency specific to Central Africa can start its activities.
The new structure is a subsidiary of HPS Consulting, headed by the Cameroonian Prosper Sugewe. HPS is a company incorporated under British law, registered in Cameroon in 2007.
According to documents filed with Cosumaf, in addition to the credit rating, Ewatch Africa Investment Analytica will operate in the assessment of the credit risk and financial solvency of companies, states, local authorities, financial institutions or financial transactions in the Central African money and financial market.
Its promoter sees an attractive market niche, in a geographic area somewhat neglected by the leaders of the sector (S&P, Moody’s, Fitch). The only competitor, the Bloomfield Investment agency, of Stanislas Zeze. Which operates, moreover, in this summer of 2020, a stage of “rebranding”.
The new structure is placed on the financial rating market while the States, local authorities of Cemac, as well as large companies, increasingly use the financial markets to raise capital. The main contribution of the new company is to establish country risk profiles – or corporate risk – in local currency. Where the majors mainly reason in dollars.
Evaluate credit worthiness!
“You have to establish in local currency the true intrinsic value of the credit quality of companies, a country, a local authority or a financial institution. Because the local currency is the one in which the wealth of the rated entity is defined and the one in which it creates value”, says Prosper Sugewe. The agency would have an initial capital of 100 million FCFA.
Pending approval, the CEO of HPS International Consulting has engaged in consultations to select recognized financial experts and analysts from the world of finance, who will sit on the rating committee of Ewatch Africa Investment Analytica.
“Rating a company or an institution financially means evaluating its creditworthiness at a precise moment. That is to say its ability to pay its debts and meet its commitments for a given time”, concludes Prosper Sugewe.
