(Ecofin Agency) - Companies listed on the Abidjan-based Bourse Régionale des Valeurs Mobilières (BRVM) have announced dividends totaling CFA613.16 billion ($1 billion) for the 2023 fiscal year. This represents the highest shareholder payout in the past four years, according to calculations by Ecofin Agency, based on data compiled by the platform Richebourse.

This record dividend level reflects a broader trend among companies to distribute more of their net margins. The consolidated net income reached an unprecedented CFA1044.12 billion ($1.72 billion). For the first time since 2020, the portion of profits distributed as dividends represents 58.73% of the total declared, excluding those of the pan-African banking group Ecobank, which is listed on two other African stock exchanges (Lagos and Accra) and thus not included in the analysis.

In addition to the announced dividends, some of which have already been distributed, investors also benefit from capital gains, representing the total variations in the value of BRVM-listed companies, estimated at CFA406.1 billion. This brings the potential gain for investors to over CFA1020 billion. However, not all companies reported dividends, and some reported lower figures.

Dividends announced by the two subsidiaries of the French group Orange (Sonatel and Orange CI) collectively accounted for 45% of the total expected investor returns. Société Générale CI remains the top bank in terms of shareholder remuneration, as it was in 2021 and 2022. This year, its proposed dividend is up 40%, marking a departure from its previous strategy of building reserves.

It's important to note that the increased dividends for BRVM investors do not fully benefit households or investors within the West African Economic and Monetary Union (WAEMU). The majority of shares in BRVM-listed companies, as in many sub-Saharan African countries, are controlled by subsidiaries of large foreign groups. The share that remains for local investors is relatively small.