CEMAC FINANCIAL MARKETS: COSUMAF GRANTS FIRST CREDIT RATING AGENCY LICENCE
- Issuance of the CONSUMAF credit licence
The Commission de Surveillance du Marché Financier de L’’Afrique Centrale (COSUMAF) has granted Geneva Investment Corporation its first licence to operate as a financial credit-rating agency on the CEMAC regional financial market.
The decision became effective on 7th August 2026, following an Ordinary Session of the COSUMAF College. The licence, identified as COSUMAF-AGN-01/2026, was granted on 13th August 2026, representing an important step towards strengthening the infrastructure of the Regional capital market and increasing the availability of locally based financial-market services.
The issuing of the licence authorises Geneva Investment Corporation to conduct rating activities within the CEMAC financial market, within the categories of entities and issuers of financial instruments covered by the operational methodologies submitted to CONSUMAF.
- B) Credit rating under CEMAC law
The COSUMAF General Regulation of 23rd May 2023 provides a more detailed definition of a Credit rating as stipulated in Article 662 :
“A rating as an assessment of the solvency of a borrower or issuer of financial instruments and of the risks inherent in a debt or financial assets. The assessment must be made using a defined classification system comprising different rating categories”.
This definition places the emphasis on credit risk and solvency, rather than on investment advice. Thus, a credit-rating agency expresses an assessment of creditworthiness. It does not, merely by issuing a rating, provide investors with a recommendation that they should buy or sell a particular security.
C. Conditions for obtaining a COSUMAF credit rating licence
The General Regulation imposes substantive requirements on applicants.
Firstly, by the provisions of Article 653 of the General Regulation of COSUMAF, an applicant seeking authorisation to conduct rating activities on the Regional financial market must submit a detailed licensing file together with meeting the following requirements:
– Have its registered office in a CEMAC Member State;
– Maintain an adequate internal-control system;
– Have an appropriate system for combating money laundering and terrorist financing.
– Article 654 of the aforementioned law requires information concerning the applicant’s organisation, business programme, directors, persons exercising effective control and financial position.
Article 655 goes further by requiring information including the applicant’s:
– Legal name and CEMAC address;
– Legal representative;
– Legal form and management structure;
– Rating classes for which authorisation is sought;
– Rating methodologies and procedures;
– Policies for identifying and managing conflicts of interest;
– Structure and number of employees;
– Remuneration arrangements;
– Ancillary services;
– Business programmes.
These requirements demonstrate that COSUMAF’s approach is not limited to checking the financial capacity of an applicant. Governance, methodology, independence and internal controls are central elements of the licensing process.
D. The implementation of a 60-day regulatory examination period for credit rating by COSUMAF
In ensuring compliance, the General Regulation also establishes a specific procedure.
– Going by the provisions of Article 657, an applicant must submit a written application to COSUMAF together with the required licensing documentation.
– Under Article 658, COSUMAF examines the application within 60 working days from receipt of a complete file. The decision granting or refusing authorisation must be notified to the applicant.
Once granted, the licence has a defined legal scope.
Article 659 provides that, the authorisation is individual, non-transferable and non-transmissible and must specify the activities authorised.
COSUMAF holds the right to withdraw an authorisation where the applicable legislative or regulatory provisions are breached, pursuant to Article 660.
NB: In the Geneva Investment Corporation’s case, COSUMAF reportedly specified that, the authorisation covers the categories of entities, issuers, issues and financial instruments corresponding to the methodologies submitted by the company.
E. A new regulatory milestone for the CEMAC financial markets
Credit-rating agencies play an important role in capital markets by providing independent assessments of the creditworthiness of issuers and financial instruments. Their ratings can assist investors, financial institutions and other market participants in evaluating credit risk.
With this, there is an introduction of a new regulated actor into the CEMAC financial-market ecosystem and could contribute to greater access to credit information within the Region.
For issuers seeking to raise capital through the Regional market, the development may also facilitate access to rating services closer to the markets in which they operate.
F. Importance of the licence
The development is significant from both a regulatory and investment perspective.
– Firstly, it demonstrates the continued development of CEMAC’s institutional capital-market infrastructure. A functioning capital market requires not only issuers and investors, but also specialised intermediaries and independent sources of market information.
– Secondly, the presence of a locally licensed rating agency could reduce reliance on external rating providers and strengthen the capacity of the regional market to assess the credit risks of CEMAC-based issuers.
– Thirdly, the development places greater emphasis on the regulatory oversight of credit-rating activities, including questions relating to independence, transparency, conflicts of interest, methodology and investor protection.
F. Implications for market participants operating within the CEMAC financial market
The emergence of a licensed local credit-rating agency could be particularly relevant to:
– Banks and financial institutions, which may use credit assessments in evaluating counterparties and investment risks;
– Corporate issuers, particularly companies seeking to raise debt through the regional capital market;
– Institutional investors, including insurance companies and pension funds;
– Governments and public entities seeking to access capital markets;
– Investment firms and advisers involved in structuring securities offerings.
For lawyers, the development also creates a number of potential areas of regulatory and transactional work, particularly around capital-market compliance, securities offerings, disclosure obligations, financial regulation and investor protection.
G. Looking Ahead in the CEMAC Financial Ecosystem
As the Regional market expands, the effectiveness of the regulatory framework governing credit-rating agencies including standards of independence, transparency and accountability will be important in maintaining investor confidence.
COSUMAF’s licensing is more than the entry of a new market participant. It signals the continued institutional development of the CEMAC Regional financial market and raises important questions about how the region will regulate and supervise increasingly sophisticated capital-market activities.
For businesses and investors operating in the CEMAC region, the development is therefore worth watching as part of the broader evolution of Central Africa’s capital-market regulatory framework.