Expression of Interest For Recruitment Of A Consulting Firm To Provide Technical Assistance For The Repurchase Agreement (Repo) Market

Expression of Interest for Recruitment of a Consulting Firm to Provide Technical Assistance for the Repurchase Agreement (Repo) Market The working language is French. 2. Objectives and Scope of the Assignment The main objective of the assignment is to strengthen liquidity in the secondary market by establishing structured, secure mechanisms adapted to the needs of emerging market participants. The services will include: - Diagnosing the secondary market and identifying obstacles to its development. - Reviewing the regulatory and institutional framework. - Designing the refinancing fund mechanism. - Preparing for operational implementation. The assignment is expected to last a maximum of five (5) months. 3. Selection Method The selection method is Consultant Qualifications Selection (CQS). Interested consulting firms must submit detailed expressions of interest demonstrating their relevant experience, qualifications and capabilities. Supporting information may include company brochures, descriptions of similar assignments, experience under comparable conditions, and the availability of appropriately qualified personnel. Consulting firms may form associations to improve their chances of qualification. The Project Management Unit will establish a shortlist and select the firm with the most appropriate qualifications and references. The selected firm will then be invited to submit a combined technical and financial proposal, followed by contract negotiations In 2021, the AfDB proposed a 300 million fund, with a 20-year duration, to guarantee the liquidity of securities used in interbank repurchase transactions. BEAC ultimately considered this mechanism unnecessary for credit institutions because it already performs the relevant refinancing function. In 2023, the Securities Settlement and Custody Unit (CRCT), responding to concerns raised by asset management companies, resumed discussions with the AfDB. The proposal was redirected toward a mechanism enabling asset management companies to obtain refinancing from a dedicated fund supervised by the central bank, using their securities as collateral through repurchase agreements. BEAC received a FAPA grant of USD 994,638 to finance PAMFUAC. Part of the grant will fund technical assistance to the CRCT-BEAC for the REPO market under Component 1 of the project, which concerns the development of the government securities market. Current market challenges The CEMAC secondary market for government securities remains insufficiently liquid. The notice identifies the following issues: - Trading volumes increased from CFAF 1,857.5 billion in 2023 to CFAF 2,603.4 billion in 2025. - The securities turnover ratio declined from 29.56% in 2024 to 27.96% in 2025. [Disclaimer: The above text is machine translated. For accurate information kindly refer the original document.] Tender Link : https://www.afdb.org/en/projects-and-operations/procurement